Are Business Degrees Worth It? (In-Depth Guide)
A business degree is one of the most popular degree choices today.
However, the cost of college continues to rise every year, leaving many to wonder: are business degrees really worth the investment in time and money?
This article will analyze the pros and cons of earning a business degree to help you decide if it’s the right choice for you.
We’ll look at career prospects, expected salaries, costs, and alternatives routes to starting a business career.
Career Options With a Business Degree
A business degree opens the door to a wide variety of career paths across multiple industries.
Here are some of the most common jobs for business majors:
Entry-Level Positions
Sales roles, like pharmaceutical sales rep, software salesperson, or retail sales associate, are commonly held by recent business grads.
These roles allow you to leverage your communication and persuasion skills.
Customer service positions also utilize the relationship-building and problem-solving skills you developed. Many companies have management-track customer service programs.
Administrative or analytical roles, like account manager, project coordinator, data analyst, or operations analyst, allow you to support business operations.
Management
After getting some initial experience, business majors often move into management roles like:
- Operations manager
- Project manager
- Product manager
- Marketing manager
- Financial manager
Management positions allow you to supervise teams, make executive decisions, and continue moving up the corporate ladder.
Expected Salary With a Business Degree
The wide range of careers available to business majors also comes with a wide salary range.
However, business degree holders tend to fare very well in terms of average salaries.
According to the National Association of Colleges and Employers (NACE), the average starting salary for business graduates is $58,148.
By mid-career, average salaries exceed $100k.
Here’s a breakdown of common business careers and their average salaries:
- Sales Manager: $63,000 entry level; $129,000 mid-career
- Marketing Manager: $60,000 entry level; $120,000 mid-career
- Financial Analyst: $63,000 entry level; $97,000 mid-career
- Accountant: $55,000 entry level; $83,000 mid-career
- Management Consultant: $65,000 entry level; $150,000 mid career
Salaries can vary widely between industries, companies, and regions.
However, business roles tend to pay above average compared to other bachelor’s degree holders.
Is the Cost of a Business Degree Worth It?
With strong career prospects and salaries, a business degree may seem like an obvious choice.
However, you also have to consider the costs incurred to earn your degree when determining if it’s worth it.
The average annual tuition cost for an in-state public business school is around $10,000, while private schools average $36,000 per year.
That means the total four-year cost ranges from $40,000 – $144,000 or more.
Add in textbooks, school supplies, housing, and lost wages from not working, and the true cost grows significantly.
However, the salary premium for bachelor’s degree holders helps offset some costs after graduation.
Workers with bachelor’s degrees earn a median of $2.8 million over their careers, about $1.1 million more than high school graduates.
Business majors in particular tend to earn high salaries that allow them to pay off student loans and still come out ahead financially.
Plus, many employers offer tuition reimbursement benefits to continue your education.
So while the upfront cost seems high, the long term earning potential of a business degree makes it worth the investment for many.
Alternatives to a Business Degree
Traditional four-year business degrees clearly have value. However, they also require a major investment of time and money.
Luckily, you have options if you want to break into business without a bachelor’s degree:
Professional Certificates
Industry-recognized professional certificates can be earned in less than two years.
Options like a business management, accounting, insurance, or banking certificate teach transferable skills.
Certificates cost a fraction of a full degree. And you can land entry-level business roles with demonstrated knowledge.
Associate Degrees
Associate degrees take about two years and focus more narrowly than bachelor’s programs.
Popular options include marketing, accounting, business administration, and finance.
After earning an associate degree, you can enter the workforce right away.
And credits often transfer to a bachelor’s program which you can complete later.
Apprenticeships
Paid apprenticeships allow you to learn on-the-job from experienced business professionals.
You get exposure to real-world business operations while earning a paycheck.
Many companies then help pay for your bachelor’s degree while you remain employed. It’s a win-win for both parties.
Tips for Maximizing Value
While business degrees remain valuable, how much value you get depends greatly on the effort you put in:
Choose Specializations Wisely
General business degrees have fallen out of favor recently. Recruiters often prefer specialized majors like:
- Accounting/Finance: Valuable across all industries
- MIS or IT Management: Technical business roles in demand
- Analytics: Data analysis skills drive decisions
- Marketing: Expert communicators and growth drivers
Tailor your focus to roles that interest you and align with your strengths.
Develop In-Demand Skills
Hard skills like financial modeling, SEO, business intelligence tools, and CRM platforms make you highly marketable.
Use electives and internships to build expertise.
Soft skills like communication, emotional intelligence, critical thinking, and project management are equally vital.
Hone these through group projects, clubs, and jobs.
Get Relevant Experience
Internships, co-ops, part-time gigs, freelancing, and volunteering expose you to professional environments.
This experience helps you get a full-time job and hit the ground running after graduation.
Network Aggressively
Attend job fairs, join clubs, reach out for informational interviews, and connect with alumni in your chosen field.
Leverage professional connections to access unlisted opportunities.
Following this well-rounded blueprint helps you maximize your career potential and salary outcomes from a business degree.
Key Takeaways: Is a Business Degree Worth It?
- Business degrees open doors to diverse, high-paying management, sales, and analyst roles
- Average starting salary is around $58k; mid-career salary exceeds $100k
- Cost for a 4-year degree averages $40k – $144k
- Higher lifetime earnings offset upfront tuition costs
- Professional certificates, associates degrees, and apprenticeships offer cheaper alternatives
- Specializations, skill-building, experience, and networking maximize value
While the costs are substantial, a business degree remains a worthwhile investment for many professionals.
With strategic decisions and effort, you can maximize career success and lifetime earnings.
Frequently Asked Questions
What are the best business degrees?
The most valuable business degrees specialize in high-demand areas like accounting, finance, marketing, IT/MIS, business analytics, and actuarial science.
What can you do with a business management degree?
A business management degree qualifies you for roles like operations manager, project manager, sales manager, HR manager, purchasing manager, and many other management positions.
Is it hard to get a business degree?
Business is one of the most popular college degrees because it pairs well with many interests and offers diverse career paths.
Business school coursework focuses more on practical than theoretical knowledge.
It emphasizes useful skills like communication, analysis, critical thinking and relationship building.
So while it still requires diligent study habits, it is very achievable for most students.
Do you need a business degree to start a business?
No.
Many successful founders and entrepreneurs did not study business in college or earn MBAs.
While business knowledge helps, the most important traits for entrepreneurs are creativity, risk tolerance, perseverance, networking abilities and leadership skills.
A business degree is not required to start or run a company.
Is a business degree useless?
No.
While business degrees were criticized in the past as too general or easy, employers still value them.
Specialized business degrees in high-demand fields lead to well-paying management, analyst and sales careers at reputable companies.
