Learn about this graduate-level business degree, how to get one, and what you can do with it.
A Master of Business Administration, or MBA degree, is a graduate-level business and management degree with a focus on leadership and managerial skills. By earning this degree, you can equip yourself with the skills and knowledge to accelerate your career, transition to new industries, or even launch your own businesses.
It’s the most common and one of the most versatile graduate degrees available.
An MBA degree program isn’t one-size-fits-all. Consider your lifestyle, career goals, and current employment situation to decide which program is right for you. Here’s a look at some common types of MBA degrees:
Full-time MBA: Traditional two-year programs typically involve taking a full course load, much like an undergraduate degree. These programs are best suited to students who don’t have to work full time and can comfortably fund their degree without bringing in a regular paycheck.
Part-time MBA: Part-time MBA programs, sometimes called professional MBAs, offer flexibility and enhanced work-life balance for students who wish to pursue a degree over several years while working or raising a family. Students with an established career can continue earning valuable work experience while learning job skills that can be applied right away. Some employers offer tuition assistance or reimbursement for employees who pursue a graduate degree while working.
Executive MBA: Executive MBA programs, also known as EMBAs, are two-year programs geared toward leaders and executives with several years of managerial experience. Since most students in these programs are working professionals, the format tends to be part time with classes on evenings and weekends. Expect a faster-paced learning environment with less immersion than a typical program. With the skills you learn from an EMBA, you can often build off of your work experience to maximize your impact in your organization.
Global MBA: Global MBAs (sometimes called international MBAs) are similar to traditional two-year MBAs but with a focus on international business principles and strategies. Students tend to come from countries around the world. This could be a good option for students who wish to work at international companies. Sometimes global MBA programs offer or require a study abroad component.
Learn more about the different types of MBA programs and how long they take to complete.
While there are plenty of good reasons to pursue an MBA degree, not every person (or professional field) requires one. Be sure to find out what hiring managers in your desired field are looking for by checking out current job postings on sites like LinkedIn or Indeed.
If you’re planning to pivot into a new industry, you might find less expensive, less time-consuming ways to build the skills you need. Consider if alternatives like individual courses, professional certificates, or bootcamps might be a better fit. If you’re feeling unsure, some online MBA programs let you try out a course (sometimes for academic credit) before committing to the full degree.
No matter which type of degree you decide to pursue, you might have the option to complete your coursework on a college campus, online, or a hybrid of the two. Each method comes with its own set of benefits. This decision is all about how an MBA program best fits into your lifestyle.
Online programs through accredited universities, like the iMBA from University of Illinois at Urbana-Champaign, offer access to the same professors and learning materials as on-campus programs with the added benefit of a flexible schedule. You can learn from virtually anywhere on a desktop or mobile device—no need to quit your job or relocate to attend a highly ranked business school.
These programs are sometimes less expensive than their on-campus counterparts. Since you can learn at your own pace, you’ll have the option to work full time (and bring in a regular paycheck).
“If a student is comfortable in joining and being fully engaged in an online setting, then an online degree will provide them with more opportunities to establish connections,” says Fataneh Taghaboni-Dutta, Clinical Professor of Business Administration at the University of Illinois. “I say more because in terms of time needed to ‘speak’ or ‘meet’ others in an online environment, it’s less taxing than doing the same for in-person settings.”
If you choose to pursue an on-campus MBA, you’ll typically attend classes in person on a fixed schedule. These traditional MBA programs often attract candidates who want to take advantage of the facilities, extracurricular activities, and overall community of a university campus.
Networking often takes place face to face, both with professors and other students. But you may have to consider relocating, particularly if you have your eye on a specific school or specialization.
As you pursue an MBA, you can learn a wide variety of business fundamentals, including economics, marketing, finance, strategy, organizational behavior, and accounting. Outside the core curriculum, you can typically customize your experience through concentrations or specializations, elective classes, and internships with actual companies. This can help you to develop some of the leadership skills necessary to run a business—and these skills transfer to many career paths.
While curriculums vary from school to school, here’s a look at some classes you might see in an MBA curriculum:
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By earning this degree, you can build a foundation for a new career or prepare yourself for better, often higher-paying opportunities. You can gain functional job skills and a well-recognized credential to potentially attract recruiters and hiring managers in a variety of fields.
MBA graduates can work across a variety of industries, though a 2022 Graduate Management Admission Council (GMAC) survey of corporate recruiters found that there is high demand for MBA graduates in the health care, finance and accounting, staffing, manufacturing, and technology industries .
Some jobs you may be qualified to pursue with an MBA include:
People with an MBA degree tend to earn more money than people who don't hold the credential, and people who earn an MBA tend to receive a salary increase upon completing their program. According to a GMAC survey, the median starting salary projected for 2022 MBA graduates in the US is $115,000 .
Factors that can influence your post-graduate salary include your industry, location, school attended, and total years of work experience. Learn more about MBA degree salaries.
Pursuing an MBA can be a significant financial commitment. It’s important to define your goals when deciding whether the investment is right for you. Through an MBA program, you’ll have the opportunity to expand your professional network, elevate your career prospects, and increase your earning potential.
Weighing the cost against the return, most MBA graduates agree that earning their MBA was worth it. In a 2022 survey from GMAC, over 85 percent of MBA graduates reported a positive return on investment from their graduate education. A majority found their business school education to be professionally, personally, and financially rewarding (84, 72, and 68 percent, respectively) .
“The training you receive in an MBA Program prepares you to deal with ambiguity and provides a buffer against uncertainty,” says Hayden Noel, Assistant Clinical Professor at the University of Illinois. “You would be better equipped to take advantage of changing opportunities post-COVID. You will also become more effective as a leader and better understand the different functions of your organization. This leads to more positive outcomes in your current job.”
The training you receive in an MBA Program prepares you to deal with ambiguity and provides a buffer against uncertainty.
Admission requirements vary by school, but applications may require the following:
Resume to show professional experience
In-person or video interview
While professional experience is not always necessary, some programs have specific work experience requirements. Previous experience could help you better gauge what you want from your degree and equip you to apply what you’re learning to your career. Other programs may allow recent graduates or even current bachelor’s students to participate in a combined Bachelor's and MBA program if they are looking to launch their careers quickly.
Standardized test scores, including the GMAT (Graduate Management Admission Test) and the GRE (Graduate Record Examination), were once standard, heavily weighted requirements. Today, more and more schools are moving to a test-optional policy, particularly for executive and online MBA programs.
Some programs, like the iMBA from the University of Illinois and the Global MBA from Macquarie University, allow students to enroll through a performance-based admission process. Learners who want to try out the program or are unsure if they meet the minimum requirements can take classes and earn academic credit before fully enrolling as a degree-seeking student.
Learn more about how to get an MBA degree.
You’ve learned about what an MBA degree is and what you can do with it. Now it’s time to take the next step on your career journey:
Try an open course from the University of Illinois or Macquarie University to see if an MBA is right for you.
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Graduate Management Admission Council. "Corporate Recruiters Survey: 2022 Summary Report, https://www.gmac.com/-/media/files/gmac/research/employment-outlook/2022_gmac_corporate_recruiters_survey_summary_report_final.pdf." Accessed October 21, 2022.
Graduate Management Admission Council. "The Value of Graduate Management Education: From the Candidate's Perspective, https://www.gmac.com/-/media/files/gmac/research/measuring-program-roi/2022-gmac-white-paper-value-of-gme.pdf." Accessed October 21, 2022.
This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.