Why getting an MBA during turbulent times may be a good idea
It’s clear to everyone that we are currently living in uncertain times. In the wake of the COVID-19 pandemic, the world economy is in a state of flux, with inflation, recession, and uncertain job markets. Amidst all this turmoil, you may wonder whether now is the right time to return to school and get your MBA.
For several reasons, getting an MBA during difficult financial times may be a good idea. Here are three points to consider.
An MBA Can Provide Stability During Chaotic Economic Times
Getting an MBA during turbulent times can provide much-needed stability during chaotic economic periods. While it’s true that pursuing an advanced degree is a significant investment of time and money, it’s also true that an MBA provides necessary skills that enable graduates to add value and attain more senior positions within an organization.
An MBA is one of the most transferrable credentials on the market because of the skills and knowledge that graduates obtain. According to a 2021 Graduate Management Admission Council (GMAC) survey, common skills developed by MBA graduates during their studies include strategic thinking, strong communication skills, overall versatility, the ability to handle complex global business environments, innovative thinking, and the aptitude to navigate challenges of technological disruption. Each of these areas are in high demand in today’s workforce.
Many employees will also choose to pursue a career change during challenging times. In the same 2021 GMAC survey, 51% of business school candidates stated they sought an MBA to re-evaluate their careers and change their career paths. The MBA curriculum is designed to give students a well-rounded education in business, with courses covering accounting, finance, marketing, and strategy. These competencies make MBA graduates some of the most sought-after employees by employers across industries and enable career changes, even in challenging times.
An MBA can help you become more marketable and increase your earning potential
MBA programs offer a variety of courses that can help you become more marketable and increase your earning potential during unstable economic times. For example, students take courses in finance, accounting, and marketing. These courses teach students hard skills like managing budgets and money at an organizational level, reading financial statements, and creating strategic marketing programs that drive growth.
An MBA program also teaches students core critical thinking and decision-making skills that can help them to become more marketable. Other commonly developed skills in MBA graduates include learning to think strategically and critically and make decisions that maximize organizational objectives, all of which are capabilities sought after in today’s business environment.
For those with their MBA, the positions they can obtain are often lucrative. According to Statistics Canada, the median salary for a master’s degree in a business field of study is approximately $104,000 per annum within five years of graduation. In addition, a 2021 Graduate Management Admission Council survey indicated that 70% of recruiters agree that within their organization, those with a graduate business school education tend to earn more than others.
An MBA can help you start or grow your own business
For your business to thrive, you must know how to manage it. Business management and leadership are core areas of focus in an MBA program and thus can help you start or grow your own business while you study.
Students learn how to hire the right people and understand how teams fit into a company’s culture and vision. They learn how to engage staff in what a company is trying to accomplish and understand the business’s financial side. Students learn how to think about their businesses strategically and develop skills that help them to think of their business as a complex system that can be scaled up and include multiple products or services. They learn about finance, governance, operations management, strategy, data-driven decision-making, marketing, and organizational leadership and management. These areas are critical to growing a thriving business, particularly during hard economic times.
Students ready to take their business from an idea into operation often find an MBA helps them understand the complex problems that come along. Whether it’s managing cash flow, navigating tax laws, creating a legal structure, or setting up employee relationships within organizations, the knowledge gained throughout your degree can help you create a foundation for growth.
According to data from Investopedia, research showed that 20% of start-ups fail within the first year. Furthermore, around 50% of these businesses close after five years, and 65% won’t make it past ten years. A sound knowledge-based framework can be invaluable as it provides a structure that was once only found through trial and error. Skills learned in an MBA can help turn your ideas into reality and provide much-needed direction.
While there’s no doubt that pursuing an MBA is a big decision, there are several compelling reasons why now may be the perfect time to do it. If you’re thinking about getting your MBA during these times, rest assured that you’re not alone—and that you might be making one of the best decisions of your career!
Learn more about the University of Fredericton’s online MBA program.