Business Administration vs. Business Management: How Do They Differ?

Business experts are in high demand, with 1.1 million projected job openings each year — and their median annual wage reflects that, exceeding $100,000.

In response to this demand, several top business schools have reported higher starting salaries for business graduates, and many colleges are offering online degree options for working students.

If you’re considering a career in business, both business administration and business management can help prepare you. However, they have key differences. Below, we’ll explain how the two compare and how to decide which is right for you.

Business administration offers a comprehensive understanding of business processes — the day-to-day operations of a company.

With this degree, you’ll learn theoretical and practical skills in accounting, economics, finance, statistics, human resources, and more.

This curriculum prepares you for roles like financial analyst, human resources specialist, or operations manager, where you’ll analyze data, improve efficiency, and manage key business functions.

Business management focuses on overseeing and coordinating an organization’s operations to ensure efficiency and growth. You’ll learn how to manage teams, analyze business performance, and develop strategies to achieve company goals.

Business management programs cover key areas like leadership, decision-making, strategic planning, and resource management. You’ll take courses in leaderships, organizational behavior, strategic planning, business ethics, and operations management.

This will prepare you for roles such as team leader, department head, or project manager, where you’ll oversee operations and make strategic decisions.

Think of business managers as the face of a company. They are the company leaders who supervise staff and resources to work toward a business goal.In contrast, business administrators handle the operations and functions of a business, including accounting, finance, and marketing.

While both roles can involve leading teams and managing a business, a business management degree focuses more on the macro side of business. This can involve understanding of how economic factors impact business and analyzing technology and consumer behavior trends to create a long-term business plan.

Business administration, on the other hand, focuses on the day-to-day operations. For example, a business administrator might oversee daily financial transactions, manage marketing campaigns, or coordinate human resources activities to ensure smooth business functioning.

Business administrators and managers can expect similar salaries and job security.

The Burea of Labor Statistics (BLS) projects 1.2 million job openings each year from 2022 to 2033 for leadership and management roles. Additionally, the BLS states the median annual salary for management occupations was around $117,000 in May 2023. However, note that salary can vary by experience.

In 2023, the lowest 10% of business administrators earned under $60,840, while the top 10% earned more than $169,020, according to the BLS.

Pay also depends on the industry you work in. For example, medical and health services managers earned a median salary of $110,680 in 2023, while advertising and marketing managers earned $156,580, per the BLS and BLS.

Location is also a factor that impacts salary. Top-paying areas include New York City, with an average wage of $188,920, and Los Angeles, at $151,060.

Both business administration and business management prepare students for leadership roles. However, these programs focus on different skills and specializations.

For example, business management is ideal for those interested in planning long-term strategies and understanding broad business factors, while business administration suits those looking to manage specific daily operations.

Still, a degree in either field doesn’t limit your career options. A business management degree doesn’t exclude you from roles in business administration, and a business administration degree doesn’t prevent you from making high-level decisions.

Note: The insights on this page — excluding school descriptions — were reviewed by an independent third party compensated for their time by BestColleges. Page last reviewed April 4, 2024.