What Is an MBA? The Popular Business Degree Explained
MBA programs have traditionally prepared students to take on leadership roles at businesses with a broad-ranging core curriculum. And many programs have innovated with more targeted curriculum toward cutting-edge fields like cybersecurity, artificial intelligence (AI), and environmental sustainability in recent years.
Those innovations have led to continued interest among employers in hiring MBA graduates. According to a June 2022 survey of employers by Statista, roughly 97% of companies hired MBA graduates — up from 80% in 2020 and well above the 59% figure reported in 2008.
Here’s everything you need to know about the quintessential business degree.
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What Is an MBA?
An MBA is a master’s of business administration degree — a graduate-level business degree that can prepare students for executive leadership roles, business management, and starting their own business.
MBA degrees are among the most popular graduate programs. Students frequently choose to pursue an MBA because of its broad applicability, opportunities for specialization, and reliable return on investment.
Graduates with this degree often experience a high earning potential, increased expertise, and more job opportunities.
Choosing the Right MBA Program Format
Part-Time MBAs
Part-time MBA programs feature the same coursework and degree as a full-time MBA, but typically take longer to complete. Most MBA programs require between 36 and 40 credits, but part-time programs can take three or more years to complete their degree based on how many courses they are taking per term.
Flexibility is a key aspect to part-time MBA programs. Many part-time students are already working in their fields, and classes are also sometimes held outside of regular business hours, like on weekends and in the evenings.
Full-Time MBAs
A full-time MBA is an intensive program that typically takes 1-2 years to complete, although some schools feature accelerated programs for students to finish their degree faster. Full-time MBA programs tend to attract younger professionals who are early in their careers and feature higher course loads compared to part-time programs.
Executive MBAs
An executive MBA is built for working professionals. It’s the same degree as a regular program but geared toward mid-career professionals. Most programs require students to have several years of work experience to enroll. Because students are working professionals, classes are often focused into intensive programs outside of typical work hours, as with part-time MBA programs.
Online MBAs
Online programs offer both full-time and part-time formats, usually taking between 2-3 years to complete. These programs feature flexible learning options for students, sometimes including asynchronous courses that allow students to work toward their degrees based on their own schedule. On average, online MBA programs are also significantly cheaper than traditional programs.
What to Expect From an MBA Program: Degree Requirements
MBA programs usually require a bachelor’s degree, but not necessarily in a business-focused discipline.
Communications, political science, engineering, and humanities are all common majors of prospective MBA students, although students may need to enroll in prerequisite courses after enrolling in an MBA program.
Typical MBA Admissions Requirements
- At least a 3.0 undergraduate GPA.
- An application, which sometimes includes essay requirements.
- The Graduate Management Admission Test (GMAT) or Graduate Record Examination (GRE). Those tests aren’t universally required, however: A growing number of schools, including Johns Hopkins, have moved away from standardized testing requirements.
- Some schools also require work experience.
Typical MBA Graduation Requirements
- Completion of between 30 and 60 credits through a mix of core and elective courses.
- Completion of a relevant internship.
- Completion of a capstone project where students apply what they’ve learned in a business setting.
- GPA requirements vary by program, but students are generally required to be in “good standing.” At the University of Maryland, for example, graduate students are considered to be in good standing if they have a GPA of 3.0 or above.
MBA Concentrations and Specializations
AI and climate change were among the top interests of prospective MBA students in a recent survey by the United Kingdom-based consulting firm CarringtonCrisp — and many business schools are adapting curriculum to embrace those growing fields.
On top of a core curriculum consisting of business, accounting, and finance courses, many MBA programs offer concentrations that allow students to hone certain skills. An MBA concentration in entrepreneurship, for example, can help students start a business.
MBA programs come in all shapes and sizes. Here are a few popular and innovative examples of concentrations available to MBA students:
Students learn about topics like financial institutions and investment management as part of this concentration. Students can pursue careers as financial directors and consultants after graduation.
Career Opportunities for MBA Graduates
Chief executive officer, general manager, financial manager, and other leadership positions are all on the table for MBA graduates, BestColleges previously reported.
Management occupations as a whole are projected to grow faster than average between 2023 and 2033, according to the Bureau of Labor Statistics (BLS), and the median annual wage for those occupations is $116,880 as of May 2023.
Some of the top occupations available to MBA graduates are:
| Job Title | Description | 2023 Median Annual Salary |
|---|---|---|
| Financial Manager | Financial managers handle plans for their organization’s financial goals, direct investments, and create reports for their employers. | $156,100 |
| Operations Research Analysts | Operations research analysts crunch numbers and use data to help improve businesses. | $83,640 |
| Project Manager | Project managers coordinate schedules, timelines, staffing, and budgets of products and services on a per-project basis. | $98,580 |
| Management Consultants and Analysts | These consultants recommend ways to improve company efficiency. Consulting is often a key field for MBA graduates, with major firms like McKinsey and Bain recruiting graduates from top schools. | $99,410 |
Source: Bureau of Labor Statistics
An MBA Can Mean Better Earnings and Return on Investment
Earning an MBA can mean an accelerated career, better earnings, and connections with fellow students and employers alike, according to a Harvard Business School blog post.
“Business school is a two-year time commitment and a financial investment,” Vai Schierholtz, Harvard Business School’s director of marketing for MBA admissions, said in that article. “But, ultimately, the value of all the things you gain from a professional standpoint puts you in a position to accelerate your career.”
Roughly 92% of corporate recruits — and 95% of staffing firms — said in the 2022 Corporate Recruiters Survey that they plan to hire new MBA graduates.
MBA median starting salaries are growing, according to the Corporate Recruiters Survey: Median MBA starting salaries are between 22% and 40% higher than those offered to bachelor’s graduates. The median bonus that recruiters said they plan to offer new hires in the United States was about $10,500, according to the survey.
Corporate recruiters also indicated in the survey that job candidates with a graduate degree in business are more competitive than those with only microcredentials, according to the report.
For people who want to accelerate their career growth and pursue leadership positions, an MBA can unlock opportunities and forge connections with the potential for a high long-term return on investment. As the needs of businesses rapidly change, schools are revamping their curriculum to ensure their MBA programs are relevant to both students and employers.
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