A Masters of Business Administration (MBA) is a specialized professional degree granted by a business school. MBA programs usually last one to two years and can be full-time or part-time. The MBA is intended to develop your business management skills. An MBA can make you more competitive when applying for leadership roles. It can also get your foot in the door in high-paying industries, like tech, finance, and consulting. Check out our answers to frequently asked questions about the MBA below!
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What Is an MBA?
The concept of an MBA is simple: it’s a degree for business management. However, MBA programs have been around for over 100 years and they’ve evolved to adapt to new trends. Thus there are MBAs for early-career graduates, mid-career professionals, and even existing executives at companies. To make matters more complicated, there are in-person, virtual, and dual-degree MBAs. This is why it is so important to research different MBA programs and to understand the landscape. If you need some advice on choosing the best program for you, check out our post on how to choose an MBA program.
While MBAs tend to be different, you can expect the following commonalities among most MBA degree programs:
Fall start-dates
There are exceptions, but usually, there is a set class of students and a Year-1 and Year-2 format. This means programs tend to start in the Fall semester of each year and end in the Spring two years later. Generally, you do have choices for electives, but your core classes are more rigidly assigned. We recommend looking primarily at the core curriculum when gauging the academic benefits of programs. Electives can be fascinating, but are more of a tangential consideration, taking up a smaller amount of your time and focus.
Core curriculum
Typically, the first year is devoted to core courses going over major concepts: finance, management, organizational behavior, behavioral economics. Programs that are more industry-focused will likely have a much more nuanced curriculum.
Engagement with recruiters
In general, recruiters regularly engage with MBA candidates as applicants to summer programs, internships, or full-time jobs. They reach out to students through events on campus or direct-solicitation as early as the mid-Autumn of your first year.
Internships
This is more relevant to full-time degrees, but most students will be pursuing internships with companies. Statistics on full-time employment with those companies can be fuzzy, but generally you’re likely to have a good chance of being hired after graduation.
Formalized alumni connections
Towards the end of your second year, many programs will facilitate connections with an alumna or alumnus in your intended field. This helps with arranging interviews and getting firsthand knowledge of what it’s like to work in your chosen area. You may very well find yourself in the alumni role helping soon-to-be graduates in the future!
MBA thesis
Many degrees require candidates to complete an individually-led research paper spanning 40-80 pages (or more) that is coordinated with a faculty advisor. The MBA thesis is usually orally defended by the MBA candidate in a public or private seminar, which is somewhat similar to that of a Ph.D. program, but with certainly different objectives.
MBA Capstone
MBA programs typically require candidates to engage in team-led hands-on 15- to 20-page research paper or project completed during the final year of studies and presented in a public seminar.
What Are the Types of MBA Programs?
MBA programs originated at Harvard over 100 years ago to prepare aspiring industrialists in accounting, business, and strategy. Times have changed. Where MBA programs used to be largely the same from institution to institution, there are now many different options, formats, and philosophies making up the business school landscape.
Full-time MBA Programs
A full-time MBA is ideal for those with 2+ years of post-bachelor’s work experience. These are the traditional MBAs that most people picture. They generally have an in-person a core curriculum, team capstones, and MBA theses coordinated directly with faculty. There are 1-year programs that are described as more intensive than 2-year programs. These are often the choice of companies that pay to send their employees to an MBA program – usually in exchange for working for that employer for afterward. Generally, the younger the applicant, the more likely they are to opt for full-time.
Executive MBA Programs (or EMBA)
Typically an 18-24 month program for those with 10+ years of work experience, Executive MBAs are lower-intensity MBAs that focus on deep-dive courses. They are most often done by mid-career professionals looking to advance into upper management. It is relatively rare to get a scholarship for these programs. But the cost is meant to be outweighed by gaining access to the executive alumni network and earning enhanced credentials.
Non-Executive Part-time MBA Programs
Often referred to as an Evening MBA, these part-time MBA programs are preferred generally by those between 24 and 32. This is seen as less competitive than full-time MBAs and lacks many of the networking benefits of a full-time MBA. These programs tend to last longer than 2 years and are far less likely to qualify for a scholarship or grant. Also, they have less access to recruiters, a key part of full-time MBA programs. However, they do provide access to alumni networks and to the credentials of having an MBA. Generally, on a CV, there is little to no distinction between full-time and part-time MBAs as both went through the same academic rigors.
Online MBA Programs
This is the broadest category, as “online MBAs” could very well be EMBAs, full-time or part-time. The distinction is in the name: it’s an online, rather than in-person, program. However, there are some hybrid programs. Scholarships, as noted above, are more plentiful for full-time in-person programs. Your mileage here will vary depending on the university. Many programs have deep wells of experience in facilitating connections and learning online. Others are a little newer to the scene and adapting to the increasing trend to move online.
We recommend asking an alumnus or alumna about their experience to judge if an online program will meet your needs. It could very well be a great option, but do your research, and try to aim for more recent information. Online programs have changed drastically since 2020 and the resulting online education boom. There are even someonline MBAs that don’t require the GMAT that may be worth looking into!
You can find more insights in this interview with one of Magoosh’s GMAT students—we ask him why he decided to pursue business school, how he structured his studies, and how COVID-19 affected his plans.
Joint Degree Programs
Best for those who have a more defined post-MBA career path, joint-degrees have an industry or field focus. For example, Stanford has joint degrees focusing on education and business, while Darden has MD/MBA programs for those training to be doctors and who need business skills. Geared towards younger, full-time students, this degree is meant to gain access into a certain field by combining studies and credentials.
What Are the Benefits of an MBA?
You’ll get a much deeper look at the how to decide if an MBA is right for youhere. But the key benefits of MBA programs, particularly full-time and EMBAs, can be summed up as:
Coursework and skills
Described briefly above, the MBA curriculum is meant to cover core competencies in business, including behavioral science and economics. Also available are multiple electives. You’re likely to have classes with the same students, bolstering connections and friendships. Finally, the capstone and MBA thesis give you the chance to specialize and put your skills to the test.
Higher-income & position potential
According to a 2023 survey by GMAC corporate recruiters, the average starting salary for an MBA in the United States is $125,000. Graduates from top ranked business schools can land starting offers closer to $175,000. Different industries will see variation in pay with MBA graduates going into consulting generally making more at the start of their careers than those going into finance or technology. You can find a more in-depth look at average starting salaries and signing bonuses across programs here.
A robust industry network
For many, this is the indisputable top benefit of an MBA course and should definitely be weighed when considering online programs. MBA networks function formally, through the university, and informally, through connection with your classmates and relationships with alumni. While you’ll have access to an alumni network regardless of where you attend, some networks are stronger and bigger than others. Don’t overlook this component when researching programs.
Higher employment rate
This is very program-specific, but generally, there is a higher chance of being employed consistently and closer to graduation with an MBA. However, there is quite a lot of range in employment figures between schools. Data from 124 schools in 2023 showed an average 86.8% employment rate within 3 months of graduation. But the variation within programs ranged from employment rates as low as 44.9% to as high as 100%.
What Do MBAs Cost?
The “sticker price” for an MBA program ranges between $50,000 and $200,000. Most large MBA programs subsidize the cost through various scholarships, grants, and other programs. When researching programs you must look deeper than at just the listed Cost of Attendance if you want to save money on your degree. That’s not to say that you are likely to get your MBA degree cheaply. Student loan data shows that the average debt accumulated from an MBA course is near $100,000.
A Financial Analysis
Let’s focus on the financial cost of an MBA program. There are various rules of thumb for deciding this, but one that is fairly reasonable is this: the bump in compensation you expect in your first three years as an MBA graduate should cover the out-the-door cost of the MBA. For example, let’s say you paid $160,000 for a full-time MBA, but your post-MBA salary only went from $90,000 to $110,000. Here you might very well say it wasn’t worth the cost as you would end up recouping only $60,000 of your investment in the first three year. Add in the possibility that you have a high-interest student loan to pay off as well. Conversely, let’s imagine if your post-MBA salary was up from $90,000 to $150,000 with a 160,000 price tag. Now you’re looking at a much stronger business case, as that salary change is $20,000 more than the cost of the program itself.
Rough math? Yes. Hard to calculate future salary? Of course! The key point to take away here is to think of the MBA as any savvy business person would. What is the probable return on investment and what is the opportunity cost? Ask yourself: will it be worth its cost, and what else could I be doing at the same time? Remember you’ll also be spending at least a year on the degree and likely 100+ hours on the application itself, so time is also a consideration. Here is a more in-depth look at considering whether an MBA is worth it for you.
How Hard Is an MBA?
MBA programs are no pushovers, as the degree tends to be time-intensive to earn (1-2 years) and can be marked by intense study. But for many people the most difficult part of an MBA is the application and interview process to gain admission!
The competition for entering MBAs tends to be fierce, especially during or right after recessions, like in 2008 through 2010 . Similarly, in 2020, a time of uncertainty led many professionals to decide that they’d like to boost their credentials and skills. Acceptance rates for universities during the Covid-19 pandemic went down due to an influx of applicants, hovering around 5% for most top-10 programs. However, we’re seeing rising acceptance rates at even top schools as the post-2020 application surge lessens.
Who Is an Ideal MBA Candidate?
You may picture an investment banking professional with a finance degree, 4+ years of experience, and a $500 haircut as the ideal MBA applicant. However, MBA programs, have been adapting to industry changes and actively working to diversify their programs and student bodies.
If you sit in on an admissions-related informational session put on by a business school, you’ll likely hear the term “holistic” to describe their application approach. That can be frustrating, as it describes a broadly fuzzy and non-quantitative assessment. However, what you should take away is the knowledge that your application doesn’t have to be perfect in every dimension. There really isn’t a prototypical perfect profile anymore, but there are certain elements that catch the eye of admissions boards.
2+ years of experience
This is not a hard-and-fast rule, but rather what you tend to see in programs. Admissions boards like to see experience and a general career trajectory that compliments your essays and stated post-MBA objectives. Let’s also view this through another question: is it wise to go directly from undergrad to an MBA program? Every person is different, but the short answer is “probably not”. Work experience will help you decide where you want your career to go and if an MBA will help you get there.
Academic rigor
Notice that we didn’t say the GMAT explicitly? This is because applicants tend to over-allocate time to what’s in their control. Since you can’t change your GPA or your past jobs, which means it’s tempting to overly focus on the GMAT. Professional designations, other graduate degrees, grades in undergrad, and, the GMAT, can together demonstrate your ability to thrive in a tough academic environment. Read more here: How does GPA factor into MBA admissions?
A well-articulated story
This can be told many ways: your undergrad degree, extracurriculars, evidence of public service, and professional accomplishments. The best opportunity you have to tell your story, and the heart of an MBA application, are your essays. Your “story” means that you can convey compellingly how you came to pursue an MBA and what you add to a program.
Titles and companies
This is a controversial addition to this list, but generally, it can help if you work at an impressive company with name recognition. Schools openly prize career progression, so any clear move from analyst to team leadership, for example, is a strong indicator of career momentum and opportunity.
Undergraduate degree.
This is required for nearly all programs, even if there is no specific major required. However, those without a finance, math, business, or economics degree will have to demonstrate their ability to thrive in a math heavy program. For many, this potential can be demonstrated by the quant score on the GMAT.
Two stellar recommendations.
Preferably from managers or former managers. There will be more on that in the next section.
How Do I Apply for MBA Programs?
The first step to applying for MBA programs is to do your research. Figure out what’s important for you and go from there. If you want a high salary, focus on schools’ ranks and employment outcomes for alumni. If you’re passionate about a specific area or field check out programs with such specialties.
Once you have a short-list of schools, the easiest way to apply is to fill out the application online on the specific program’s website. Luckily, it appears that, while the details can change, the portal in which you’ll put your information is very similar across most colleges. In addition to your undergraduate degree and transcripts from your degrees, here are additional admissions requirements and their considerations:
Two letters of reference:
You should always check each program’s requirements, but generally your recommenders should address at least two topics. They should describe their relationship to the candidate and how they compare to their peers. You can probably tell that this has a distinct bias for managers. You may not want to ask your current employer for a reference. Luckily, clients, former managers, and professors are also options. You will then need to give the contact information for your recommenders. They will be emailed a link to submit their letter and, potentially, to answer scored questions about your aptitude.
GMAT/GRE score (or an Executive Assessment for EMBAS):
Check the requirements for your program, as some schools will even accept “expired” GMAT scores (older than 5 years).
TOEFL or IELTS score:
If your undergrad was not taught in English, it’s likely that you’ll need to submit a TOEFL or IELTS score. This is program-specific, and some have loosened their requirement to look at other representations of English ability.
Admissions essays:
Typically MBA essays have asked applicants to answer “Why this program?” and “Tell us about you”. However, the recent trend has been for universities to ask more unique questions (see Duke’s “25 random things about yourself” essay, for example). There is also a supplemental essay asking for any additional information. This is an opportunity to talk about mitigating factors and other considerations you want a program to know. This can be a good place to explain weaknesses in your academic or work experience.
An application fee:
Fees can range from $50 to $300, but the idea is that each application is given consideration and so this covers the university’s overhead. Be sure to look up the university’s “fee waiver” for which many program applicants can qualify.
And the last thing you’ll need? Patience. For larger programs, it can take two or more months to hear back about interviews, but luckily timelines are transparently communicated on their websites. It’s well worth it to first learn about programs, and then to mark the major dates in your calendar.
When Should I Start Applying for an MBA?
Since you will be gathering letters of reference, prepare for tests (50+ hours, on average), and filling out an application, give yourself at least a 3-month window. Increase that timeframe if you need more time to increase your GMAT score. For the overwhelming majority of programs that begin in the Fall, your rough timeline is:
Round 1 Deadlines:
June to September of the preceding year (for example, a 2025 to 2026 program will close applications in Summer 2024). Start preparing your application in February.
Round 2 Deadlines:
December to February before the program (for example, a 2025 to 2026 program will close applications in the preceding Winter). Start preparing your application by September.
Round 3 Deadlines:
March to May of the same year (for example, a 2025 to 2026 program will close applications in Summer 2025). Start preparing your application in December.
While we’re on the subject, you might be wondering in which round you should apply. Overall the rule is “the earlier, the better,” as each round tends to have more applicants than the last. The tough situation in which many applicants find themselves is weighing between Round 3 of this year or Round 1 of next year. For that, we don’t have an easy answer, but the question you should ask yourself is: will my application be substantially better in three months?
What You Need to Know about MBAs: A Summary
An MBA can be valuable for your career, but it will likely come with a considerable price tag and 1-2 years of study (on top of around 3 months of preparation). So it’s well worth doing research and some serious introspection with the question: is this right for me? Also keep in mind that not all MBA programs are made the same and that there are degrees that may very well be more tailored to your career interests!
If you’re earlier in your career, you may want to consider a Masters in Management (MiM)! To learn more, check out our post on the difference between MiM vs. MBA.
Check out also the STEM MBA, if you are into technological and analytical careers.
If you’ve made it this far, congratulate yourself for doing research into what is right for you, and we wish you luck on whatever next steps you take.
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