We’ve all heard the saying, “Anyone can be an entrepreneur.” While true, business’s more advanced facets can easily be overlooked without the proper knowledge and expertise. It’s times like these when a Master of Business Administration (MBA) proves to be a valuable asset, effectively enhancing your business or career growth.
The business world is extremely competitive. You’ll need all the help you can get, and having an MBA can boost your chances of achieving long-term success. Today, we’ll explore the prestigious MBA degree and see how it can unlock opportunities for professional growth. We’ll discuss the benefits of having one, the things you’ll need to consider before you enroll, and if it’s even worth getting an MBA.
What is an MBA?
According to Southern New Hampshire University, An MBA – short for Master of Business Administration – is a graduate degree that provides a comprehensive business education. The program equips individuals with diverse skills that can prove vital in various business settings, from economics, marketing, and financial management to social responsibility.
This coveted degree is highly valued in many corporate environments, especially in companies that want their employees to have a significant amount of business knowledge—knowledge that only an MBA education can provide. As such, an MBA can be incredibly helpful in acquiring leadership roles.
The prestige and ability to skyrocket your career are among the major perks of earning an MBA degree, but this isn’t cheap —which is often true for most Master’s degrees. In fact, in a recent 2022 report, a Master’s degree typically costs between $30,000 to as much as $120,000, depending on the school, the major, and the length of the program.
A Master’s degree in Business Administration, on average, can cost about $61,800, which can cost even higher – or lower – depending on the school. For instance, getting a Master’s degree from Harvard Business School can set you back around $112,760, while at Binghamton University, you can earn an MBA for only $34,940.
Benefits of an MBA
Based on the 2022 report above, it’s pretty clear that an MBA degree can be a relatively hefty investment. As such, it’s incredibly important to recognize the benefits of having an MBA degree before you commit to getting one. A 2019 literature review on the impact of MBA programs on professional career development shed some light on the matter.
In this review, the researchers gathered and analyzed 38 empirical articles on the benefits of having an MBA from high-impact journals. The findings revealed that MBA programs had notable effects on three dimensions of human capital: educational, intrinsic value, and social-cultural. Let’s discuss these findings in more detail below.
Educational Benefits
Acquiring an MBA degree can be a fantastic way to improve your knowledge and skills—in terms of hard business and soft skills. For instance, a study mentioned in the review found that MBA education improved information collection and analysis, quantitative data analysis, technology management, and skills for action and entrepreneurship.
As for soft skills, one research found that having an MBA can positively impact a student’s skills that revolve around human resources management and teamwork, with improvements in task delegation and attention, listening, and communication skills. Meanwhile, one study cited that an MBA can improve problem-solving and team collaboration.
Intrinsic Value
Aside from acquiring knowledge and skills, an MBA can also help individuals feel good about themselves. For instance, one of the most recurring themes that were consistently present in the review was how it improved an individual’s self-confidence and credibility, leading to more successful careers.
An MBA also helps individuals attain career clarity and satisfaction, opening up new paths toward success. In another study, it was found that individuals with an MBA improved their ability to manage stress, conflict, decision-making, and their ability to lead others.
Lastly, an MBA also helps individuals gain personal values. One study showed that individuals pursuing an MBA developed values like loyalty and a sense of belonging.
Socio-Cultural Benefits
Regarding socio-cultural benefits, MBA programs often provide students with a platform to make friends and network with others—which can be beneficial after graduating. Moreover, MBA students have also been shown to have better relationships with co-workers, which helps them feel more comfortable within their organizations.
MBA graduates also garnered more respect and credibility among co-workers. The prestige of the business school where the MBA was obtained equated to even more respect, better career opportunities, and higher salaries. As a matter of fact, in 2021, MBA graduates worldwide expected a median starting salary of $115,000.
Also, in 2022, it was revealed that 92% of employers intended to hire MBA graduates. In 2021, 97% of them hired MBA graduates, indicating a significant increase in demand compared to the previous year.
Things to Consider Before Pursuing an MBA Degree
While it’s clear that having an MBA has plenty of benefits in store for students and graduates, it’s worth noting that earning an MBA isn’t a “golden ticket” to success. It requires a lot of time, dedication, and hard work—not to mention the time and money you need to invest.
Considering certain factors and challenges before enrolling in an MBA program would be best. From financial and time commitments to job or industry relevance, each factor is as important as the next and should always be included in the decision-making process.
Your Passion for Business
If you’re not genuinely interested in business, management, or any of the topics an MBA program covers, you’ll eventually find the experience quite tedious and not conducive to personal growth. Enthusiasm and passion for the subject can significantly enhance the learning experience and long-term benefits.
In 2021, researchers studied how academic passion influenced students’ academic engagement. They surveyed 1,029 college students in China’s Henan Province to determine if academic self-efficacy and teacher developmental feedback influenced the relationship between academic passion and engagement.
The results showed that students tended to be more engaged and confident when they were passionate about their studies mainly because a students believed in their abilities. Additionally, teacher feedback played a significant role in shaping the relationship between academic passion and engagement.
Financial Commitments
As mentioned earlier, an MBA degree can be quite expensive, and the odds of it costing even more are greater if you study at a more prestigious university. Moreover, you’ll also need to consider school supplies and learning materials, living expenses, and other miscellaneous costs that can add up in the long run.
However, if you’re committed to obtaining an MBA, always look for possible student aid that you can avail. The aid includes financial aid programs such as scholarship grants, student loans, and employer sponsorships. So, make sure to do some research if you’re eligible for such programs, or ask your school or employer if you can apply for one.
Time Commitments
An MBA degree usually takes a couple of years to complete —years that can potentially be invested elsewhere if an MBA isn’t your primary priority. As such, carefully weigh your options and think about the time you’ll need to commit to complete your degree. The time commitment means less time with work, friends, family, and yourself.
Also, if you’re currently employed while pursuing an MBA, expect your studies to interfere with your work or vice-versa, which can burn you out sooner than you might think. Time management skills are essential to juggle the two effectively.
Industry Relevance and Career Goals
If you’re in an industry that doesn’t necessarily value an MBA or your career goals don’t align with business environments, pursuing an MBA might not be the best fit for you. Although getting an MBA can teach you other valuable skills outside of business, it might be better to seek other Master’s degrees that align more with your industry.
Take this scenario, for example you’re working at a corporate job, and let’s say you enjoy it and the pay is good. However, you don’t plan to stay in the business industry for too long since you want to pursue your passion, like music or arts. If so, pursuing an MBA may not be the most suitable path.
Alternatively, suppose you’re working as an engineer or a nurse. In that case, there’s a good chance that employers won’t recognize the value of an MBA, as opposed to working in an investment bank or an insurance company. As such, you must assess your career path and whether getting an MBA can benefit you.
Understanding why you’re pursuing an MBA and determining if it aligns with your career goals is important. Take the time to reflect on whether the skills, knowledge, and experiences you would learn in an MBA program could contribute to your long-term career goals and personal fulfillment.
For instance, many schools are noticing a decline in MBA enrollments due to the world’s focus on tech and programming—favoring individuals with such technical skills over business ones. In 2020, researchers studied the barriers affecting the decline in enrollment of Master’s Degrees in Business Administration in the Industrial Revolution we’re in now.
To shed light on the matter, the researchers gathered survey data from 1,145 programs at 336 business schools globally. Participating programs were located in 40 countries, 39 US states, and the District of Columbia. The sample included 572 MBA programs, 549 business master’s programs, 7 postgraduate programs (PGP), and 17 doctoral programs.
Findings revealed that “employment difficulties” emerged as the most significant barrier. Other barriers included “lack of entrepreneurship skills,” “high cost,” “longer payback duration,” “10-year return on investment,” and “lack of data analytic skills,” which must be carefully considered by our lawmakers when formulating and implementing policies to address the challenges.
Already Possessing Desired Skills
Another obvious point of not obtaining an MBA degree is If you already possess the technical and soft skills required for your desired career path. If so, an MBA might have little to no value for you. In such cases, pursuing targeted skill development programs or workshops could be a more efficient way to enhance your capabilities.
Moreover, many companies recognize the significance of work experience as more than just education. As such, if you have a strong background in leadership roles in the past, it may be enough to land management positions without needing an MBA degree. While both are certainly better, if you’ve already got what it takes, why even bother, especially if a company doesn’t require it?
While this certainly doesn’t apply to all companies, as some require an MBA degree for career advancement regardless of the skills you possess, it ultimately boils down to the company’s specific policies regarding advancement. Be sure to ask around or do your due diligence in researching to clarify if you’ll need to invest in an MBA degree or not to get promoted.
Conclusion
An MBA can open up many opportunities for professional growth. It can teach you valuable skills and knowledge that can potentially skyrocket your career to greater heights. Whether enhancing your business knowledge, personal growth, or gaining socio-cultural insights, an MBA can be a fantastic tool.
However, while an MBA is valuable for many, it may not hold the same value for everyone. Considering individual circumstances, career goals, and industry demands is essential before pursuing an MBA. Factors such as time commitment, budget, and alignment with personal passions should be considered.
That being said, the knowledge gained, the personal growth experienced, and the enhanced career opportunities that an MBA unlocks are immeasurable assets that can propel you toward a future filled with success and fulfillment for climbing the corporate ladder and becoming a leader in the business world.
