The first Master of Business program was established in the early twentieth century at the Tuck Business School. Today, over seven thousand MBA colleges and universities offer the program. Around the world, an MBA degree holds great value and opportunity. There are many reasons why an MBA degree is a great way to charge up your career, and this blog explores the top 10.
MBA graduates are desirable in any job market; an MBA will give you the opportunities you need to advance in the business world. Although an MBA is not an absolute requirement for any career path, many companies treat the MBA degree as a pseudo-requirement for applicants, and not having one could exclude you from the leading companies in your industry.
Benefits of an MBA
- Advance your career
An MBA can prepare you to move into a managerial position within your field. There are some careers, like finance, banking and consultancy that require an MBA for advancement. Some companies do not promote employees who do not have an MBA.
- Change careers
If your present career path does not really fit your abilities and interests, an MBA program will give you the flexibility to explore your options and provide you with the training you need to change careers. Your MBA program will give you general business and management expertise that can be applied to nearly any industry, as well as the ability to specialize in a particular area of business.
- Improve your credentials
An MBA is a credential that sends a signal to the marketplace. However, the nature of the signal being sent depends on the specific MBA program’s reputation. Choose wisely!
- Earn more money
MBA degree holders tend to have higher earnings. In 2015, the median starting salary for new MBAs was $100,000, according to an annual survey by the Graduate Management Admission Council (GMAC).
In another 2015 survey of B-school alumni by the GMAC, 90% of respondents reported that their MBA degree had boosted their earning power.
- Start your own business
If you want to start your own business, but feel you don’t have the necessary expertise, an MBA degree can help you with everything from writing a business plan to acquiring venture capital and launching an IPO.
- Gain leadership and management skills.
An MBA program gives you the opportunity to develop leadership and interpersonal skills through experiential courses informed by current research. You will develop a wide range of business knowledge and technical skills in a short period of time, as opposed to the trial-and-error processes of on-the-job learning that can take years.
In your MBA program, you will study leadership, business, and management philosophies that can be applied to leadership roles, together with hands-on experience.
Not every business leader or executive has an MBA. However, you are more likely to be considered for leadership roles if you have an MBA.
- Lead in an emerging field
An MBA will give you the innovative education that can lead to an exciting career in an emerging field like information technology, e-commerce, brand management or mobile telecommunications.
- Grow your network
Networking is a key benefit of the MBA degree. Because business school teaching styles include a lot of teamwork, you’ll develop strong relationships that can help you throughout your career. And as you also get access to an alumni network, this can help with job searching and mentoring. Larger MBA programs often offer larger networks. Certain networks are concentrated in specific geographic areas or industries.
- Get greater job security
MBA graduates are highly desirable in any job market. An MBA will give you opportunities to advance in the business world.
- Get an interesting business education
One of the best reasons to get an MBA is because you are interested in studying business administration. If you like the topic and want to increase your knowledge, pursuing an MBA for this reason is a worthy goal.
The ROI of an MBA Degree
According to some reports, average MBAs earn 50% more after earning their degree than they did beforehand. Although an MBA degree doesn’t guarantee higher earnings – it can definitely put you on the right track to earning much more than you do now.
The average starting salary for MBA graduates can be as high as $110,000 to $130,000 per year for those graduating from top ranked institutions. MBA graduates from other schools can earn $75,000 to $90,000 per year. MBA graduates who find work within government roles can expect salaries from $50,000 to $75,000 per year, and those working in healthcare can expect over $100,000 per year.
MBA graduates with over 10 years’ experience can earn in the range of $200,000 and above.
Why NOT to get an MBA?
There are some wrong reasons for going to business school. Do not do an MBA if you don’t know what else to do. Applicants to business school should know the field they plan to move into and how the degree will help them. If you’re planning to go into a career that’s not in business and that doesn’t require an MBA it may be preferable to do a specialized master’s degree.
The decision to go for an MBA is not easy, and you should weigh up many factors to ensure it’s the right course for you. Ask yourself where you want to be in 5 to 10 years. . If going to business school will fast-track you to that goal, go for it!