According to the Association to Advance Collegiate Schools of Business (AACSB), enrollment in master's degree in business administration programs has grown steadily since the early 1970s. In the 1969-1970 school year, there were 21,561 students in MBA programs. By 2004, that number had soared to 139,344 students. Enrollment in MBA programs continues to grow every year, as students discover how financially and professionally enriching MBA programs can be. The recent rise of online MBA degree programs offers students new, convenient options so that now an MBA program can fit into even the busiest schedule.
Financial Benefits of an MBA Degree
Many business professionals choose MBA programs to boost their earnings. They might graduate from college, work for two to three years, and then return to business school to earn their MBAs. This is a smart salary-plumping strategy. The National Association of Colleges and Employers reports that starting salaries for students with bachelor's degrees in business average a very respectable $45,723. According to the Graduate Management Admission Council (GMAC), MBA graduates in their first year out of business school earn an average of $99,700 in salary and bonuses. Upon completion of a two to three year MBA program, students double their average earnings.
You might feel concerned about the price of an MBA degree program's tuition and the hidden cost of your lost earnings while you attend the program. However, a study conducted by BizRate Magazine, a publication of the AACSB, shows that the economic benefits of an MBA far outweigh the initial costs. For example, in 2001, an MBA cost, on average, $23,000 for tuition and $149,000 in lost earnings for a total of $162,000. However, students can break even and begin to recoup their investment in around 8.7 years. Over the course of a career, professionals with their MBAs make $1.4 million more on average than if they had decided not to pursue an MBA. This adds up to a 17.6% real return on their initial investment of $162,000.
If you choose to enroll in an online MBA program, your rate of return on your investment might be even higher. Online MBA degree programs' flexible course scheduling allows you to continue working full-time while earning your degree, eliminating the cost of your lost income. Many employers also offer tuition reimbursement for MBA programs, further easing your financial burden.
An MBA Holder's Professional Rewards
Once you earn your MBA, you can look forward to more exciting professional prospects. According to the AACSB, 71.5% of MBA graduates were given promotions by their companies after they finished their programs, and the GMAC reports that around 74% of graduates are managers at their companies. Earning your MBA usually means that you will receive more respect for your abilities from your employers, making them much more likely to increase your professional responsibilities.
In general, the job prospects for MBA degree holders look rosy. According to the GMAC, corporate recruiters were looking to employ 18% more MBA degree holders in 2006 than in 2005. This growth in employment opportunities gives you many attractive job options. Also, as BizRate explains, unemployment rates for people with professional degrees have been 25% lower than rates for those with only their undergraduate degrees. In general, people with professional degrees such as MBAs enjoy greater job security than those who do not have them.
The Convenience of an Online MBA Degree
More and more students are discovering the advantages of online MBA degrees. These programs offer flexible scheduling of coursework, and you can do your work from any location. If you do not want to give up your job to earn your MBA, an online degree is a great option. They are particularly well suited for businesspeople who travel frequently. Traditional programs require you to make trips to a college campus for classes most days of the week. If you are out of town on business for part of every week, these programs will not fit your schedule. Part-time on-campus courses frequently meet in the evenings or on weekends, cutting into your family time as well. With an online MBA degree program, you can schedule your coursework around your life rather than scheduling your life around your coursework.
The benefits of an MBA program extend to all aspects of your life, and the financial rewards of an MBA can be enormous. Professionally, you stand to gain more respect, increase your promotion opportunities, and find more attractive job openings. The new option of an online MBA degree program makes it easier than ever to reap these benefits.