MBA – three letters that stand for many career opportunities. But is it worth the effort?

Imagine you’re about to take your career to the next level. Maybe you’ve heard that an MBA, which stands for Master of Business Administration, is the ultimate door opener in the business world and you ask yourself, is this for me?

In this blog post, we will explore in detail whether an MBA is the right move for you, for whom it is particularly worthwhile and how it could change your career.

What is an MBA and why is it so popular?

An MBA is an academic degree that aims to prepare professionals for leadership and management positions. It is particularly popular with people who want to advance their careers in business, management or entrepreneurship and may have a technical background such as engineering, computer science or general science, law or medicine. The MBA also provides in-depth knowledge in the areas of business management, strategic thinking and problem-solving skills.

An MBA is usually an undergraduate Master’s degree that follows on from a Bachelor’s degree and comprises 90 to 120 ECTS credits and should not be confused with an MAS. An MAS, i.e. a Master of Advanced Studies, on the other hand, is merely a postgraduate master’s degree or post-diploma program often comprising only 60 ECTS credit points and is more commonly offered in Switzerland but also occasionally in Germany.

What makes the MBA so special is its strong practical orientation. It focuses on the real challenges of the business world and prepares students in business and economic know-how, finance and accounting, marketing and the development of leadership skills that are essential for success in today’s global economy. This is why an MBA degree is particularly attractive in the international business environment and is valued by many global players in the market such as google.

Career, salary, network: what the MBA really brings you

Many people who pursue an MBA have clear expectations of the degree. They hope for an acceleration of their career, a salary increase, the opportunity to advance to management positions or even the option to start their own business.

An MBA can be a valuable step in these cases, provided you know exactly what your own goals and expectations are. Many career starters and young professionals also use an MBA to build a strong professional network and develop valuable soft skills such as dealing with people and teams, which are becoming increasingly important in everyday working life.

For whom is an MBA worthwhile?

An MBA is not the best option for everyone. However, there are certain career goals and professional situations in which the degree is particularly useful:

• Career starters: For those who have at least one year of professional experience after their Bachelor’s degree and are looking for deeper expertise in the business field to increase their chances of promotion.

• Young professionals: If you have already gained professional experience and now want to take the next step on the career ladder, an MBA is an excellent way to qualify for management positions.

• Industry-specific benefits: An MBA is particularly valuable in sectors such as management consultancy, finance, IT, chemicals and pharmaceuticals, power engineering and automotive because they rely on strategic thinking and management skills to drive innovation.

• Company founders: If you want to start your own business, an MBA can help you to build up entrepreneurial knowledge and important network connections and thus become successful as a start-up.

Hard facts: What do the figures say?

How can an MBA influence your professional success? Let’s take a look at the numbers:

• Salary jump: According to the GMAC Corporate Recruiters Survey 2023, a comprehensive survey conducted by the Graduate Management Admission Council (GMAC), mainly in the US but also in other international markets, MBA graduates earn on average 50-70% more than their colleagues with only a bachelor’s degree.

The survey collected data from over 1,000 leading companies worldwide, from different industries and regions. In total, more than 5,000 recruiters from areas such as technology, finance, consulting and other sectors took part in the survey. These results show in the chart below that the financial advantage of an MBA degree is particularly evident in management and executive positions.

• Return on investment (ROI): ROI describes the profitability of an investment. An analysis by the Financial Times shows that the tuition fees for an MBA usually pay for themselves within 3-5 years, based on the average salary increases after completing an MBA program (Financial Times Global MBA Ranking, 2023).

• Unemployment: According to a report by BusinessBecause, the unemployment rate among MBA graduates in the US is significantly lower compared to other graduates. In 2023, MBA graduates had an unemployment rate of only 3%, compared to the average unemployment rate for all graduates of around 5-6%(BusinessBecause MBA Employment Report 2023).

These statistics show that an MBA is often more than just a qualification – it’s a real career catalyst that will help you succeed in the long term.

How much does an MBA cost and how do you finance it?

In case of doubt, the costs are a definite distinguishing criterion. The cost of an MBA program can vary depending on the university and study model. Worldwide, fees average between 20,000 and 100,000 euros, depending on the duration and prestige of the program. In Germany, however, there are accredited and renowned MBA programs that cost far less than 10,000 euros for flexible distance learning.

In any case, the increased salary prospects and career opportunities can quickly make the investment worthwhile.

Financing options:

• Scholarships: Many universities and organizations offer scholarships for particularly committed students. These scholarships usually take into account academic achievements, professional experience and social commitment. One example is the Deutschlandstipendium, which supports talented students.

• Employer funding: Many companies fund MBA studies for their employees if this is conducive to their professional development and the company’s success. Examples of this can often be found in the consulting or financial sector, where MBAs are particularly in demand.

• Study grants: Various banks and funding organizations offer special student loans and grants with favourable conditions. KfW Bank, for example, offers student loans to help students finance their fees and living costs. You can find out more about financing your studies in our blog article “How do I finance my studies”.

Advantages of an MBA: More than just theory

An MBA is more than just an academic title. It offers you the opportunity to systematically plan your career and take control of your professional future. The biggest advantages of an MBA include:

• Leadership skills and strategic thinking: You will learn how to master complex business challenges and act in leadership roles.

• Network: A strong professional network that you build up during your studies can help you in many areas of your career.

• Flexibility: Many MBA programs offer flexible learning formats that allow you to adapt your studies to your personal and professional commitments.

Is an MBA right for me? – Conclusion

An MBA is a significant investment in your future that you should consider carefully. The cost and time commitment is quite high, but this investment in yourself can pay off in the long run if you have clear career goals, such as a change of industry, function or promotion to a management position.

However, if you find that your interests are more specific, a specialized Master’s degree, for example in business psychology or digital management, may be a better choice for you.

In the end, the decision as to whether an MBA is worthwhile depends entirely on your personal goals. If you are looking for a career with management responsibility, better pay and a strong network, then an MBA is definitely a valuable step. An MBA opens doors that might otherwise remain closed to you and gives you the opportunity to realize your full potential.

Are you interested in a part-time MBA? You can find more information here.