MBA vs. Master's in Business

Master of business administration (MBA) degrees have long served as the gold standard of graduate business education. MBA programs typically attract ambitious, advancement-oriented learners seeking a respected credential capable of elevating their professional credibility.

While MBAs remain popular, they are not for everyone. MBA programs have a reputation for being expensive and competitive. They also tend to focus on generalist skill sets that may not align with your individual learning goals.

As an alternative, you can consider master's programs in business. These interdisciplinary programs often lead to master of science (MS) degrees and focus on targeted areas like management or business analytics.

When comparing an MBA to a master's in business management, analytics, or another alternative, you should consider how each path can impact your career opportunities and earning potential. This guide explores each path, explaining its differentiating features in detail.

Comparing an MBA and a Master's in Business

An MBA draws from the learner's professional experience and teaches new managerial and leadership skills. Many MBA programs require previous work experience. Because many MBA students are busy professionals, colleges and universities often offer flexible part-time MBAs that allow students to work while earning their degrees. Other schools offer accelerated MBA programs for professionals who want to complete a master's degree as quickly as possible.

During an MBA program, students often cover business topics unrelated to their desired field. This gives graduates a comprehensive business education, allowing for an easier transition into a new industry or role. Created for students with work experience, MBA programs help graduates advance their careers and land managerial positions.

A master's in business program can help students who may not have much, or any, professional experience learn professional skills. Most master's in business programs let students select a focus, such as business analytics, finance, or economics. After students select their area of focus, the bulk of coursework covers that topic. The goal of most master's in business programs is to teach new skills to learners interested in changing their careers.

Because many master's in business students plan on switching fields, not all programs offer flexible part-time options. However, online learning options allow some students to continue working while completing the program. Master's in business programs typically take a few years to complete, but the investment pays off for many graduates. Generally, a master's in business program does not require previous work experience.

Classes and Curricula

Program curriculum varies based on numerous factors. These include whether you select an MBA or master's in business and any specialization you may add to your degree.

An MBA provides a holistic business education. MBA programs require business courses in all areas, including accounting, finance, analytics, ethics, management, leadership, organizational behavior, and marketing. Many MBA programs strive to create leaders and managers, so students must have a firm grasp on all facets of business.

MBA programs often offer concentrations in common business fields, such as accounting, finance, or economics. They may also offer specializations in niche areas like marketing analytics or product marketing. Programs that do not require a concentration typically provide students with plenty of freedom when selecting electives. Most MBA students have plenty of real-world experience, so not all programs require an internship.

A master's in business focuses on one field. For example, a student interested in accounting would likely earn a master of science in accounting. This business degree requires numerous accounting courses, such as accounting theory, fundamentals of business law, and internal accounting. Other master's in business focuses include economics, finance, and marketing.

Because most master's in business students have little or no professional experience, some colleges and universities require an internship. If not required, schools may require a group project or capstone project instead.

It's important to note that, while these are outlines of coursework typical for these programs, curricula can vary widely from school to school. Prospective students should carefully research each school's course offerings to find a degree that fits their interests.

Program Length

Regardless of which master's degree you plan on earning, expect to spend at least 1-3 years completing the degree. Still, various factors impact how long an MBA or a master's in business takes to complete.

Learners must decide whether they plan on studying full or part time. Full-time options are best for students with limited commitments. Part-time options are best for learners juggling coursework with jobs and families. While a part-time option takes longer to complete, busy learners may find it fits their needs best.

As an MBA program often requires previous experience, many MBA students continue working while earning the degree. An MBA student may therefore be more inclined to select a part-time online option. Part-time programs vary in length, though students generally graduate in 2-3 years. While part-time options for a master's in business are less common, these programs take a similar amount of time to complete.

Full-time students complete degrees fastest, with some programs averaging 18 months in length. While full-time students complete their degrees faster, they also commit to a more rigorous schedule. Situations vary by student, but someone pursuing a master's in business is likely better suited for a full-time program than an MBA student.

Future students have two other factors to consider that influence program length: accelerated courses and online learning. Accelerated courses are short and intensive, usually lasting 7-8 weeks. Completing accelerated courses allows you to take fewer courses at a time, but complete more courses throughout the school year. The best online MBA programs facilitate flexible learning and accelerated courses. Many online programs take less time to complete than their on-campus counterparts.

Salary and Job Potential

MBA and master's in business degrees both lead to advanced business roles. However, due to the complexity of large businesses, a graduate of either degree program will find a vast and varied job and compensation market.

According to Payscale, as of August 2024 the average MBA graduate earns $98,000 per year. But the real wages earned by MBA holders vary widely — operations managers can earn an average wage of $72,980 while chief financial officers earn $148,890.

Master's in business graduates also earn highly variable salaries. The concentration you choose heavily impacts potential earnings. For example, students earning master's in business in accounting can become certified public accountants (CPAs) and earn an average wage of $77,840. A student earning a master's in business in economics could become a data scientist and earn an average wage of $100,650.

The industry also impacts potential salaries. Some industries, such as consulting, technology, or financial services, pay higher average wages than industries like nonprofit, government, and hospitality. Some industries may also prefer applicants with one degree over the other. For example, an MBA graduate may thrive in the healthcare industry thanks to their leadership and administrative skills. A master's in business graduate may find more success in a logistics company where they provide a crucial skill, such as supply chain management.

The job outlook for most careers following either degree is positive. The Bureau of Labor Statistics projects jobs for CPAs and data scientists to grow by 6% and 26%, respectively, between 2023 and 2033. While careers and pay vary widely, both an MBA and a master's in business lead to growing fields.

Switching vs. Advancing Careers

Picking between an MBA and a master's in business also depends heavily on career goals. Generally, an MBA allows current professionals to advance their pre-existing careers. Most MBA curricula focus on teaching management, leadership, and general business skills, priming graduates for upward mobility within their current business or industry.

Alternatively, someone looking to switch careers may benefit from a master's in business. A master's in business teaches specific skills, preparing graduates to leave their current industry. However, some current professionals find that mastering a specific field of business helps them advance their careers. The specialization you choose for your master's in business influences your career trajectory.

Prospective master's degree applicants should note that neither MBA nor master's in business programs always require a bachelor's degree in business. While most MBA programs require professional experience, institutions tailor their MBA curricula to specific industries, including human resources, information systems, and healthcare management. A master's in business provides even more flexibility, allowing students with no background in business to transition into the field.

Program requirements, available courses, and career outcomes vary by institution. If your goal is to switch or advance your career, research schools and programs that align with your goals. Some schools specialize in career advancement, while others focus on helping students switch fields. Ultimately, the institution you choose may have the biggest impact on your career.

Common Questions About an MBA vs. a Master's