Do you really need to study for an MBA in 2025? Weighing the pros and cons

I did my MBA twelve years ago. I graduated just before our oldest daughter turned one. Times have changed since then. The real question today is, is an MBA still relevant for career growth, especially for those in corporate employment? Today, i would like to share both the pros and cons. If you are considering getting an MBA, hopefully, at the end of this article, you will be able to make an informed decision.

5 reasons an MBA might not be the right choice

1. Time commitment: Studying for an MBA requires massive time commitment. If you are a working professional, you will have to manage your work demands and family commitments in addition to attending classes,  sometimes after work and during weekends. When I started my MBA, I did not have the added responsibility of children. I can only imagine how i would manage if I had to do my MBA whilst managing a career and being a present mother and wife. This is not to say it can not be done. I  know many working mothers and fathers  who have done it successfully. The one challenge they all mention is the time commitment required.

2. No guarantees of career growth: an MBA does not guarantee career growth. Unless you have commitment from your employer that on completion of your MBA, you will be promoted or get  a salary increase, do not let this be the sole reason you decide to study. You might set yourself up for disappointment.

3. The skills can be acquired elsewhere. The key components of an MBA are comprehensive business knowledge that includes strategy, finance, marketing, operations, human resources, etc. Today, all these skills can be acquired elsewhere, either through online courses or executive education, for a fraction of the cost.

4. High financial cost: MBAs can be very expensive. For example, the University of Pretoria’s Gordon Institute of Business Science (GIBS) MBA, in 2024, was around ZAR 447 000 ( ~US$24,000) for the two year program. On the extreme end is the world-renowned Havard MBA, which for the 2024 – 2025 year has tuition of $152 820 for two years, excluding living expenses.

5. Opportunity cost: Another important consideration is the opportunity cost of studying for an MBA. What are you forgoing by choosing to study instead of investing in other financial opportunities? If we go with the cost above, and you instead decide to invest that money into the S&P 500, how much will your investment be worth in ten years? Obviously, it’s not always about the financial ROI, which then brings me to the reasons an MBA might be a good idea.

5 reasons to study for an MBA

1. Expanded professional network. Business schools offer a great opportunity to network. The old saying that your network is your net worth is actually very true. Your classmates, other past students of your school  and industry leaders who are often invited to business schools can be invaluable for various opportunities in your career or business. I listened to a clip from Ibukun Awosika, the Chairperson of the First Bank of Nigeria. She mentioned that she attended a 4 day course with the Kellog School of Business ( University of Chicago). There were over fifty CEOs from around the world. On the last day, the professor asked them to write their dream or the goal they had not been able to fulfill yet. The professor then asked each person to read out what they had written, and as each person read their goal, he would ask if there was anyone in the room who could help fulfill that dream.  Apparently, at the end of that session, only two goals/dreams did not have anyone in the room who could help fulfill them. All this to say, you should not underestimate the power of building a professional network, and a course like an MBA might just be what helps you with this.
2. Comprehensive business knowledge. An MBA provides comprehensive business knowledge. The curriculum covers a wide range of business disciplines such as strategy, marketing, finance, human resources, and operations. This broad base equips  participants with a holistic understanding of how the different functions are interconnected. If you have ambitions of being a CEO or an entrepreneur running your own business, then an MBA might be good for you. With increased business acumen, the chances of success increase.
3. Opportunities for career advancement. An MBA can open doors to higher management positions and leadership roles. Some management and executive roles often require applicants to have an MBA. The key is the ability to apply the knowledge gained to your specific business circumstances.
4. Increased earning potential. Some studies show that the starting salary for MBA holders is significantly higher than for those with just a bachelor’s degree. Some graduates report getting significant salary increases after the completion of an MBA.
5. Global career opportunities.  Not all MBAs are created equal. An MBA from a reputable business school can open doors to international job opportunities. Many  top business schools have very strong global alumni networks and career placement programs that connect  graduates with multinational companies. Even for entrepreneurs, an MBA from the right school can unlock business opportunities.

Here is the opportunity cost of my MBA. If I had invested the ~$10 000 that I paid in tuition fees for my MBA in Tesla’s initial IPO in June 2010, i would have bought approximately 588 shares at $17 per share.  Tesla has since undergone 2 stock splits. 5 for 1 in August 2020 and 3 for 1 in August 2022. These splits would have increased my share count to around 8 823. As of today, 25 January 2025, the Tesla share is ~$406 per share. An investment of $10 000 would be valued at $3 582 352,94! Obviously, this is a very simplified calculation that does not include transaction costs,  potential dividends, and taxes, but I am sure you get the idea.

Don’t get me wrong, I have no regrets about studying for my MBA when I did. I saw the benefits for my career, the skills I gained and the network  I built. As someone who mentors many young people, I always encourage them to look at both sides of any argument, and this is my objective with today’s post.  If studying for an MBA is on your short or long term goals,  before you commit, weigh the costs,  monetary and otherwise versus the long term benefits and see if the trade off is worthwhile in your specific situation.

Gratitude: This week had some personal challenges. I still experienced God’s assurance that He is with me always, and for this, i am grateful 🙏🏽

Gratefully