What Is an MBA? The Pros and Cons of Business School

The MBA, or Master of Business Administration, is a professional degree that covers business-related topics including finance, accounting, business law, marketing, communication, and management strategy.

As the most popular graduate degree in the United States, MBAs come in a variety of styles: Full-time MBA programs generally take two years and include early-career MBAs, designed for recent graduates, and executive MBAs, designed for people who already have significant work experience in their fields. Part-time MBAs and online MBA programs are designed to be more flexible, for those balancing graduate school with work or other responsibilities.

Almost all programs require a bachelor’s degree and standardized test results: either the GRE (Graduate Record Examinations, administered by the Educational Testing Service) or GMAT (Graduate Management Admission Test, administered by the Graduate Admission Council), as well as letters of recommendation and demonstrated soft skills.

The benefits of business school go beyond coursework. Some of the biggest pros of pursuing an MBA are:

1. 1. Networking: MBA graduates often cite networking as the highlight of their business school experience. Alumni, professors, and other MBA students can all become future co-founders, collaborators, or investors and help connect you to career opportunities.
2. 2. Credibility: Especially if you’re looking to join a mainstream, large corporation, certain positions will prefer applicants to have an MBA and might even require it. Even if your career path doesn’t necessarily require an MBA degree, the work you do in school can help build your resume and self-confidence. This is especially true of business degrees from top-tier schools like Wharton, Stanford, and Harvard Business School.
3. 3. Build skills: For folks who don’t have a lot of experience in their field—recent grads or those looking for a career change—business school can be a great place to gain experience and learn new skills. If you do your research, you may be able to find a school with business programs tailored to build a specific skill set, such as social entrepreneurship or agribusiness.

Of course, business school isn’t for everyone. Before you take out student loans, consider:

1. 1. Opportunity cost: The most obvious reason not to get an MBA is that it can be very expensive. In addition to tuition, housing, supplies, and health insurance, committing to a full-time MBA program will probably mean you’re not making any money while you’re in school. You might decide that time and money would be better spent gaining hands-on experience or building your professional network on your own.
2. 2. Different goals: Real-world experience can sometimes be more valuable, especially for entrepreneurs, than learning the ins and outs of management. Make sure your MBA program actually fits your career goals.

Get the MasterClass Annual Membership for exclusive access to video lessons taught by business luminaries, including Sara Blakely, Bob Iger, Howard Schultz, Anna Wintour, and more.