Is an MBA Worth the Money in 2017? 13 Facts
Is an MBA Worth the Money in 2017? 13 Facts
In a business world where a significant percentage of the crème de la crème consists of college dropouts, pursuing further education is more and more being scrutinized with a lens of skepticism.
Let alone getting an MBA, aspiring businesspersons are growing doubtful whether getting a degree is worth the money and the resources in the first place. That, however, is a story for another day; for now, here are 13 insights that will help you choose the right path regarding getting the much-hyped MBA.
You have no intention of getting into the business world
If the business community does not feel like home, an MBA might not be a great idea. If you intend to do it for you parents, or any other person other than you, think twice before committing your money and time into joining a graduate school.
You have significant experience
If you have already dived head first into the deep end of the business pool and you have considerable experience, getting an MBA may neither be worth the money, nor the time, nor the effort.
For starters, you will probably struggle in classes because most professors do not have sound real-world business experience. On your part, this will foster latent disrespect hence erecting a mildly permeable knowledge filter. Furthermore, much of the classwork might mirror actual experiences you have already encountered.
You are part of a startup
If you get the privilege of being part of a startup early on, forget an MBA. As startups grow, personnel have to develop accordingly: meaning that you will learn much, if not more than what you would have learned in MBA classes – in a more realistic setting.
You are a self-education nut
With great educational resources such as EDX, Cousera, educative YouTube videos, blogs, webinars and many others, the knowledge offered in MBA classes is accessible with a little more effort on your part. If knowledge rather than the accolade is what you are after, the cost of an MBA may not be feasible. You would be better off educating yourself at no cost.
You do not have the money
If your big plan is taking a loan to get an MBA, do yourself a favor and forget about it – at least until you can fund your tuition via alternative methods. Research shows that student loans tend to flip over the financial futures of many. Moreover, many do not know that student loans are among the debts least likely to be forgiven. Even if you die, your guarantors (often parents) will be on the hook for your loan.
The opportunity cost is substantial
What would you rather do: get an MBA first, or read a few good business books, source for a mentor, and start your entrepreneurship journey? Go to school first, or learn on the job in the mold of many celebrated titans of industry? If the opportunity cost in your case is too dear, getting an MBA will not be worth the money.
You do not have the time
If you are swamped with obligations, adding another responsibility in the form of getting an MBA may not be a wise idea. Simply do a cost-benefit analysis to determine whether the trade-off necessary to get an MBA is reasonable. Factor in family, business, lost income, etc.
Getting an MBA does not actualize the same advantage over others as it did a couple of decades ago. This is so because so many people now have MBAs. If you get one, you will compete with those who have acquired theirs via part-time and executive programs.
Fewer job opportunities
Even with an MBA, getting a job with pay that mirrors your level of education may be a challenge. It boils down to the economic status. In today’s business environment, companies pay MBAs less than they did a few years back. Simply put, an MBA will not open up an obstacle-free highway to success.
You are looking for a promotion
If you want to maneuver your way into a plum position at work and you can spare two years of your time and around $80,000 for tuition, then, go for it. MBA holders get promotions faster and thrive in the workplace as productive employees because that is what MBA is mainly meant to do: create polished business employees.
If you are lucky enough to get sponsored, getting an MBA might be an excellent idea. Often, however, especially if it is a firm sponsoring you, you might have to pledge several of your working years to the company after graduating.
You have no knack for business
If you feel that business is your thing yet you have no knack or knowledge of how it all works; an MBA may be perfect for you. It will equip you with a helpful overview and information on how the different cogs of big business function. However, it will not guarantee automatic success.
You know precisely what you want
If you have already done the math, weighed the pros and cons and you know exactly what you want out of an MBA, then, go on and get it. For best results, only go for programs offered in top-tier schools.
The conversation on whether an MBA is worth the money or not will rage on, but the truth is that it all boils down to personal circumstances and preferences. Thus, it all depends on what you want to do, and the career path you wish to follow. What is for certain, though, is that an MBA’s return on investment has reduced significantly.