Is an MBA Worth It?

Earning a Master of Business Administration (MBA) can be a gateway to success in the corporate world. Some students earn an MBA to take on high-level roles in their organizations that require an advanced degree and skill set. Others earn one so that they can start their own business with confidence.

However, an MBA is an investment of time, money, and energy. While earning one can provide a substantial return on investment (ROI), is an MBA worth it? To help potential students answer that question for themselves, here’s what they need to know about the costs associated with an MBA and what this career-focused degree can offer.

What Is an MBA Degree?

An MBA is a graduate-level degree that focuses on business administration and management. While some MBA programs allow students to specialize in an industry or aspect of management, they typically include classes that cover multiple aspects of business leadership.

MBA programs often include classes on:

• Managerial accounting
• Market analysis
• Strategic decision-making
• Personnel management
• Change and innovation management
• Legal and ethical guidelines for business leaders

Most MBA programs require applicants to have a bachelor’s degree and a certain level of work experience. Some require students to submit Graduate Management Admission Test (GMAT) and/or Graduate Record Examination (GRE) scores, but this isn’t true for every program. Program duration can vary, but it usually takes between one and two years to complete. 

How Much Does an MBA Degree Cost?

The average cost for students attending MBA programs and other types of graduate programs at public institutions during the 2023-24 academic year was $11,827, according to the National Center for Education Statistics (NCES). For students at private institutions, the average cost was $20,515. The exact tuition can vary based on location, school, and amount of financial aid received.

To determine whether an MBA is worth it, it’s important to weigh these costs against the potential salary gains often associated with earning an MBA. According to the 2024 corporate recruiter survey from the Graduate Management Admission Council (GMAC), the estimated median starting salary for MBA graduates is about $120,000. The estimated median starting salary for professionals with bachelor’s degrees is about $69,000. 

It’s important to note that these figures are estimates and that individual salary expectations may vary. However, the data suggests that an MBA can provide a significant financial ROI. The value is difficult to quantify because it depends on numerous factors. The most common factors are:

• Individual career paths
• Finances
• Work-life balance
• The reputation of the institution where the degree was earned
• Job market

In addition to the potential financial benefits of earning an MBA degree, there are other advantages to consider.

Benefits of Earning an MBA

Aside from salary potential, enrolling in an MBA program can come with many other benefits. With an MBA, students can explore a more diverse range of careers, build their professional networks, and learn advanced administration skills. For many graduates, these factors combine to bolster their job security in an often competitive job market.

Career Opportunities

MBA program graduates can gain access to entry-level as well as higher-level positions, paving the way for professional growth and advancement. By acquiring a wide-ranging skill set, MBA holders can become sought-after candidates for departmental management positions, C-level executive roles, and even jobs with business consulting firms.

Additionally, many MBA graduates use their new skills to start their own business or maximize the value of their existing business ventures. Their newfound confidence and proficiency empower them to navigate complex business landscapes and seize opportunities for growth and success.

Network

Connections and networking opportunities can help business professionals expand their professional networks. Many MBA programs offer students the opportunity to connect with other business professionals, including alumni of the program. This network can be valuable for finding job opportunities, building partnerships, and developing business relationships.

Business schools often have robust industry connections and alumni networks. This allows students to engage with professionals from diverse sectors and build valuable relationships. These opportunities often lead to internships, job placements, and even mentorship opportunities. For many students, these opportunities play a major role in determining whether an MBA is worth the investment.

Skill Set

Through the broad yet in-depth curriculum that MBA programs offer, new and working professionals alike can gain skills that are highly valued by recruiters and employers. These skills are often a must for leadership positions and achievement in a fast-paced business environment.

While each MBA program has its own curriculum, they all typically help students attain and improve their skills in:

• Communication
• Leadership
• Marketing tactics
• Risk assessment
• Strategic and critical thinking
• Successful negotiation

In many MBA programs, students don’t just learn these skills in the classroom. They also get the chance to practice them during practicums, internships, and long-term projects in which they help local industry partners tackle organizational challenges.

Job Security

With a comprehensive skill set, extensive networking opportunities, and practical experience, many MBA graduates find themselves well-prepared to enter competitive job markets. In some cases, students receive job offers even before they complete their studies.

Many companies prefer to hire individuals with advanced degrees for management and leadership positions. They appreciate that MBA graduates possess the skills to hit the ground running and make an immediate impact within their organizations. For that reason, MBA graduates can often find roles in just about any industry.

Industries and subsectors that MBA students can work in after graduation include the following:

• Finance: Investment banking, corporate finance, private equity, venture capital, financial analysis, risk management, asset management

• Consulting: Management consulting, strategy consulting, operations consulting, human resources (HR) consulting, information technology (IT) consulting, business advisory

• Marketing and Sales: Brand management, product management, market research, sales management, digital marketing, advertising, and customer relationship management (CRM)

• Operations and Supply Chain Management: Operations management, supply chain management, logistics management, procurement, manufacturing management, quality control, process improvement

• Entrepreneurship and Startups: Founding a startup, business development, venture capital, innovation management, strategic partnerships, market entry strategies

• General Management: Business development, project management, strategic planning, organizational leadership

• Healthcare Management: Hospital administration, healthcare consulting, health policy analysis, pharmaceutical management, medical device management

• Technology management: Product management, IT consulting, technology strategy, project management, innovation management, data analysis, and business intelligence

• Nonprofit and Social Impact: Nonprofit management, impact investing, corporate social responsibility (CSR), philanthropy management

• International Business: Global operations management, international market entry strategies, international consulting, trade and export management, cross-cultural management

This list isn’t exhaustive. Graduates can find opportunities in any number of other industries.

Discover an MBA That’s Worth It to You

Your business career can benefit from an MBA by providing you with useful skills, knowledge, and networking opportunities. However, determining which MBA degree is right for you can take a lot of time and research. With its career-focused curriculum, flexible schedule and learning format options, and experiential learning opportunities, the MBA program at Notre Dame de Namur University can be that program. 

Located in Belmont, California, NDNU offers a streamlined path to earning your MBA in just 18 months. Now available 100% online, like our bachelor’s degree completion programs, this program gives working students flexibility, with convenient evening classes offered in eight-week sessions. Students in every industry can learn the skills they need to take their careers to new levels through a mix of interactive sessions and asynchronous classes on leadership, data analysis, management accounting, and more.

For information on applying and why it’s worth it to earn an MBA from NDNU, reach out to our admissions team today.