Pros And Cons Of The MBA

It’s difficult to see the value in an MBA today. We’ve discussed how the value-added ratio of the MBA has dropped to alarmingly low levels in recent years.

But how does one ultimately decide whether or not an MBA is right? Lulu Curiel, Founder of Ivy Advisors, recently discussed in a Forbes article the biggest pros and cons when it comes to the MBA.

MAKING MONEY VS. LOSING IT

Perhaps the biggest factor preventing people from pursuing an MBA is the cost.

“The unavoidable truth is that getting your MBA as a full-time student can cost anywhere from a few thousand dollars to more than $100,000 if you attend a top-tier business school,” Curiel writes. “The average sits somewhere around $60,000 for a two-year program. That isn’t exactly pocket change.”

Yet, Curiel stresses that an MBA can also be a path to higher income.

“One 2010 study found that the average starting pay for someone who had just earned their MBA was up 50% more compared to their salary before getting their MBA,” Curiel writes. “But that’s not where it ends. After five years, that number could be even higher.”

LEARNING VS. DOING

If your goal is to become an entrepreneur, it’s important to note that an MBA isn’t necessarily a requirement.

“It’s true: Not every CEO has an MBA,” Curiel writes. “Nothing is stopping you from starting your own business or working your way up to an executive position without having an MBA. If you feel financial and time commitments aren’t worth it and that you can go out and succeed without an MBA, go ahead and do it.”

On the flip side, Curiel notes that an MBA can teach you the skills to seamlessly operate a business.

“You can leave school with a stronger understanding of both the practical and theoretical frameworks of how a business operates, such as managing a business’ finances, how to know who to hire, doing thorough data analysis and good advertising practices,” Curiel writes. “Even if you don’t want to start your own business, these are the skills that employers want and expect from an MBA graduate in the first place.”

BUILDING RELATIONSHIPS

For many, the value of an MBA lies in the connections they make.

“You might be surprised to see the diverse backgrounds of your classmates, and the relationships that you make are going to be something you can reach back into over time,” Curiel writes. “Your network is practically your lifeblood post-graduation. If you decide you want to switch careers and your network is deep enough, you should be able to leverage those connections to make it happen.”

However, Curiel notes, it’s important to realize that even with an MBA, there is no guarantee of success. In the end, it’s up to you to have the determination to reach your goals.

“It’s easy to see that the reasons not to get an MBA are possible to overcome,” Curiel writes. “If you have the determination to earn your MBA, nothing should be standing in your way. Commit to your goals. That’s what it takes.”

Sources: Forbes, Poets & Quants