Consultant or entrepreneur? Demystifying the “war for talent”

The “War for Talent” has made the cover of Fortune Magazine as well as being a top agenda item for the leadership of professional service firms – from McKinsey to the three Bs (Bain, Boston Consulting Group, and Booz Allen) to the big five accounting firms. A boom economy has led to a demand for talent that surpasses the supply, or at least the supply from Ivy League and top tier B‐schools. As consulting firms battle it out on B‐school campuses and scurry to other sources of talent such as engineering schools and PhD programs, one cannot help but ask, “Why are people choosing entrepreneurial positions over a consulting career?” The answers may be more in the failings of consulting firms to define a compelling industry‐wide value proposition than in a new venture’s overarching attractiveness as a moderate risk, high reward opportunity.