This research article studies in detail the problems, issues and challenges faced by the MBA graduates and the management institutes offering MBA programmes in Chennai with reference to employability, entrepreneurship, skills and competencies. It also focuses on the areas to be included in the existing MBA curriculum. For this purpose, employers in various industrial sectors are consulted to understand their needs and opinions. Having studied the problems, it also suggests strategies for enhancing the quality of MBA programme to meet industry standards. A flexible MBA programme is suggested to accommodate the needs of changing industrial scenario, keeping in mind only a programme which allows constant assessment and re-evaluation with scope for modification will help achieve meeting the changing demands of the industries.