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Is Business School Worth It?

Written by Jamie McCrary | April 14, 2023

 

Thousands of students enroll in business school each year to pursue an MBA, a degree considered the gold standard for aspiring business leaders.

Completing an MBA is an intensive commitment, requiring time, energy, and money investments. Some programs cost upwards of $100,000, a substantial expense for recent graduates and professionals alike.

For many, this raises a key question: Is business school really worth it? And if so, what ROI can MBA students can expect?

Why Attend Business School?

People enroll in business school for various reasons, but the most common is to advance their careers. This makes sense given the focus and benefits of an MBA: It provides credibility, equips students with in-demand skills, and provides an extensive professional network.

According to a recent survey by the Graduate Management Admission Council (GMAC), people cite three specific career-centered motivations for applying to business school:

  • 74 percent want to increase their number of available job opportunities,
  • 72 percent aim to increase salary potential, and
  • 71 percent endeavor to develop their general business knowledge, skills, and abilities

Most business school alums agree their degree was a valuable pathway to upward mobility and career satisfaction.

“I wanted to learn the intricacies of business dynamics and leadership styles and develop a network of business relationships,” says Sean A. Cahanding, a graduate of Kogod’s online MBA program. “I knew the MBA program would help guide my thinking as an executive. It sets you up for success so that you can confidently choose a path and excel.”

Who Pursues an MBA?

Today, business school classrooms are more diverse than ever. Among applicants who took the GMAT in 2022, citizenship spans nearly 200 countries, and only about a quarter studied business as an undergraduate.

Diversity is a significant benefit of the business school experience. By learning alongside a diverse cohort of classmates, MBA students gain exposure to various perspectives and problem-solving approaches—experiences they can apply to future leadership positions.

Kogod’s Full-time MBA program—voted no. 9 in diversity by Bloomberg Businessweek—aligns with these trends. Out of the program’s 23 graduates in 2022:

  • 48 percent identified as a woman,
  • 35 percent were international, and
  • 30 percent were either Black or Latino