The Master’s of Business Administration (MBA) gets a lot of press these days, so you’d think most people have a good understanding of what it is and how it works. However, there continue to be a number of misconceptions about these programs and their students. These range from the absurd to simple misunderstandings, but the top three are:
1. It’s only for people at big companies
While many people in an MBA program are employed by a large company, this may be because large companies are more likely to help fund an employee’s MBA. The information and strategies learned can be applied to any-sized business, from a one-man show up to a Fortune 500. In fact, it can be particularly helpful for small businesses.
Many people start a company because of their passion for that line of work, but that doesn’t mean they know how to handle all aspects of owning a company. The president of a technology firm may have a great background in computers, but little to no experience in the financial side of running a business. An MBA gives them the tools and knowledge to run that small business more efficiently.
2. You have to have decades of experience
While some experience in the working world is preferred, it isn’t necessary to have a three-page resume to get into an MBA program. In fact, the average age of an MBA student is late twenties, early thirties, although it isn’t uncommon to see fresh undergrads as well as people who have significantly more time in the professional world under their belt.
3. It’s expensive
Just like getting any degree, an MBA does involve some expense. But, any business-minded person will tell you to look at the net effect of it on your finances rather than the sticker price. A person with a master’s degree earns an average of $17,182 more than one with a bachelor’s – every single year. Over the course of a career, that adds up quickly. Plus, many employers will actually cover part of all of the cost of an MBA, further reducing your out-of-pocket cost.
Every MBA program is different, so it’s important to thoroughly research the schools you’re considering. Top schools can be fiercely competitive, but if you can get a spot, you’ll reap the benefits in your career for decades.