Is Business School Worth It?

 Earning a master’s in business administration is the same as an MBA, which is the same as going to business school.

No matter what you call it, an MBA demonstrates that you know more than a thing or two about management, business and entrepreneurship.

What Is an MBA?

A master's in business administration is a graduate-level degree designed to help ambitious professionals become strong, innovative business leaders.

The MBA is a degree program that lets students learn about all aspects of business. Specifically, it’s designed to provide cross-functional leadership skills for strategic and holistic business management.

Since it was first introduced by Harvard Business School in 1908, the MBA has been considered the gold standard of business education for aspiring executives.

Is an MBA Still Relevant?

More than 100 years later, it’s hard not to wonder if the MBA is still relevant, especially because the business landscape has changed so dramatically.

Statistically speaking, yes, an MBA is still relevant–and popular.

According to labor analytics firm Lightcast, in 2021 there were 109,231 master’s degree completions in business administration and management. And online MBA programs continued trending up even more; 43% from 2012 to 2021.

Along with a jump in online MBA program completions also comes a jump in demand for MBA-trained leaders. According to the Graduate Management Admission Council (GMAC), 92% of employment recruiters and 95% of recruiters for consulting firms say they plan to hire MBA graduates.

Clearly, the MBA continues to hold its own as a sought-after credential that, even in an evolving economic environment, is still a great option for business professionals.

5 Great Reasons To Go To Business School

1. Earn a Higher Salary
There’s nothing wrong with wanting to be paid what you’re worth. And higher potential earnings is one of the best reasons to earn an MBA. In looking at the numbers, the average starting salary for MBA graduates is more than twice that of bachelor’s degree grads. The GMAC puts those numbers at $115,000 and $75,000, respectively.

2. Break Through a Career Ceiling
An MBA can help clear the way to senior management and executive-level positions. When you go to business school, you’re more likely to achieve more in your career. In fact, according to GMAC, demand for graduate-level management talent is booming. Their research shows that 2 out of 3 recruiters agree that organizational leaders are more likely to have a graduate-level business school education. And, in the tech sector, these same recruiters say that more than half (54%) of business school grads experience a rapid rise to the top of the management ladder.

What matters most when choosing a master’s program? Compare features, benefits and cost to find the right school for you.

3. Increase Credibility and Marketability
In addition to helping you develop more confidence in your ideas and solutions, an MBA also can improve how your employer, colleagues and peers perceive you. Adding the MBA credential can increase your marketability, too, by opening up the door to better career positions, independent consulting gigs, as well as speaking, writing and publishing opportunities.

4. Expand Your Network
From professors to other students to industry mentors, MBA graduates say one of the most valuable components of their degree is the opportunity to make connections in the business community. As an MBA student you’ll be introduced to the varying perspectives and experiences of people different than you. And you’ll learn new leadership and interpersonal skills to help advance your career.

5. Gain Cross-Functional Leadership Skills
An MBA is designed to give you skills and insights into how to maximize every business function, including human resources, marketing, operations and finance. An MBA can help you further develop your management skills, too. With the right MBA program, you’ll be well-prepared to apply strategic frameworks and use your critical-thinking and problem-solving skills to help organizations innovate, advance and succeed.

More Business School Benefits

Not all MBA degree programs are created equally, however, high-quality online MBAs offer some additional benefits that may help you decide if going to business school is worth it.

• Apply Learnings and Skills Immediately: You don’t have to wait two years to apply the concepts you learn in your MBA program to real-world challenges. By getting your MBA at an online business school, you keep your career momentum going while accelerating your potential.
• Reduce Your Opportunity Cost: When you enroll in an online MBA program, you’re able to keep your full-time income while you learn. That means it will take less time to realize a return on your investment. Working while going after your MBA also makes it more likely that you can cash flow some or all of your MBA education. Your employer may offer tuition reimbursement or have a tuition reduction partnership with your college or university, so be sure to ask about these benefits for full-timers.

The Real Cost of Business School

The worth of business school isn’t determined only by the end result; it’s also determined by what it takes to get there. Here’s a closer look at the different “costs” of an MBA so you can decide for yourself if the benefits outweigh your investment.

Time and Energy
If you attend business school online, you should expect to treat it like a part-time job. If you decide to attend business school full-time, it’s more than likely that you will have to push pause on your career ambitions, at least for a while. Regardless of which way you go, it's important to be fully committed to your MBA program–and that means scheduling dedicated time and brain power for classes, assignments and networking.

Money
When it comes to tuition costs, there are two things to consider: expensive business schools and affordable ones. Either way, you’ll want to make a plan and a budget before you start your MBA program. You’ll want to know exactly how to pay for college (income, savings, tuition reimbursement or loans). And, if you take on any loans, you’ll want to know how and when you plan to pay them back. Remember to think about just how much of your future income you’re willing to pay back later. 

Personal Sacrifice
Whether you get your degree in person or online, you need to know there will be times when your MBA has to take priority over other things, including your interests, hobbies or personal commitments. An online business school can make it easier to proactively manage your schedule, especially if your program uses a balanced learning format in which the number of hours required each week is about the same.

How Can I Decide If Business School Is Right for Me?

For many wannabe MBA students, determining the worth of business school starts with comparing the cost of an online MBA program with a traditional, in-person business school.

Online vs. Traditional MBA

Entrance Exams
With an online MBA you won’t have to worry about taking an entrance exam. While many MBA programs are forgoing standardized tests like the Graduate Management Admission Test (GMAT)and required minimum scores, some of the holdouts are more likely to be full-time, campus-based programs.

Time Commitment
Online MBA programs are inherently more flexible. And because they’re designed with the busy, working professional in mind, you can earn your MBA on a part-time basis while still working full-time. Many traditional MBA programs are so time intensive with structured, full-time course loads that it’s impossible to do anything but go to school.

Time to Earn Degree
Neither an online MBA or a traditional MBA program require a four-year commitment. But with rolling class schedules and other benefits, you could finish your MBA in as few as 12 months with an online program. A traditional MBA? Plan on at least two years to finish.

So, Is Business School Worth It?

While you may wish you could wave a magic wand and answer the magic question, “Is business school worth it?” The truth is, going to business school is a highly personal choice.

Since there is no one-size-fits-all answer, here are some questions you can ask yourself to help you make the most informed and confident decision about the worth of going to business school:

• Do you feel stuck in your career and think an MBA credential could help propel you in the right direction?
• Are you in a specialist function or a different career field looking to create new career opportunities?
• Can you recoup the opportunity cost (tuition, fees, books, lost income) of your MBA in a way that makes personal, professional and finance sense?
• Are you willing to prioritize your schedule and put in the time and energy needed to go to business school?
• Do you have a strong desire to become a better business leader?

If you answered “yes” to any or all of those questions, congratulations, you’re a good candidate for business school.

Of course, the final decision is yours.

Just remember that the cross-functional, leadership-focused curriculum of an MBA could be exactly what you need to become a strong, nimble, more in-demand leader.

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