Have MBA will make money?

An MBA is undoubtedly one of the most challenging qualifications that the business world has to offer, but achieving success requires more than just a good business brain. Would-be MBA students need significant time, energy and money if they are to succeed — but despite these challenges MBA student numbers continue to rise. Increased earning potential is a major driver for embarking on an MBA. The annual Salary and Careers survey (2003) undertaken by the Association of MBAs (AMBA)* illustrates this point. The survey shows that, in the UK at least, base salaries rise on average by 39% after graduation (31% when adjusted to reflect wage inflation). Individuals with MBAs consistently earn high salaries (in the UK, this comes in at around ?64k), and these higher salaries often bring additional benefits such as performance bonuses, improved pension, medical insurance or a car. And as most MBA graduates (70% of those surveyed) are under 45, this level of earning is set to continue for many years to come.

The increase in salary is usually a result of positive career development soon after the MBA is awarded: three out of five of MBA holders surveyed by AMBA were either board directors or senior managers. Many fresh graduates move straight into a new job with a new employer, primarily in a corporate strategy or consultancy role. Almost as many stay with their current employer, and rise to senior management roles. Continued salary progression is not entirely dependent on the employment market. AMBA also found that 25% of new MBAs expect to be running their own business at some point in the future. However, this is not a natural corollary. In fact if we look in our local scenario the phenomenal success of, Arthur Lok Jack, Master Entrepreneur of the Year (2001) defies this. There may be persons who are uninhibited and can seize the opportunity to take big risks when they arise. However, once they have done so they would need the formally trained personnel, such as the MBA holder, to sustain the vision.

Focus on salary may seem mercenary, but there are real reasons why an immediate rise in income is considered so important. An MBA is a serious financial commitment, especially for full-time students who can experience significant loss of earnings during the time they study. Course fees can be as high as ?25,000 in addition to living expenses. An MBA should be viewed as an investment in your career and your future and should therefore be considered very carefully. There is no direct link between the amount you pay for an MBA course and the salary you hope to demand, and surprisingly, less expensive options are not necessarily less prestigious. For example, the Oxford Brookes MBA, an online distance-learning MBA available to qualified professional accountants which allows them to study and continue their careers,  is relatively reasonable in terms of cost. With an accelerated entry route on offer exclusively to qualified ACCA accountants, the lower fee structure reflects the fact that members have already covered part of a full MBA course in their professional studies, and have also gained work experience (demanded by accredited MBA schools).

This type of accelerated entry also results in a reduced workload,  helpful for those already holding down a demanding job (and in the case of the Oxford Brookes MBA for ACCA members, a course which can be completed in 21 months). The AMBA survey shows that part-time and distance-learning MBAs have become increasingly popular, accounting for 65% of all UK MBA courses taken. Although balancing the demands of work and study are a significant challenge, many prefer to retain their income level whilst studying, and use the MBA as an immediate springboard for further career advancement. It must be stressed that there is no global ‘average’ MBA graduate in terms of expected income or opportunity. The financial benefits of an MBA are highly dependent on the school awarding the qualification, the work experience and career goals of the individual, and the economic and cultural context in which they apply their new skills. However, a good MBA from a respected institution is undoubtedly highly prized, and is recognised around the world as evidence of a determination to go far. Hunger and vision are key factors that drive success and once this is evidenced by the MBA holder there is no limit to his career prospects.

*All statistics from ‘MBA Salary & Career Prospects, 2003 Edition’ published by the Association of MBAs (AMBA). Survey respondents are living and working in the UK, are members of AMBA, and are graduates of AMBA-accredited MBA programmes offered by business schools across Europe.

ACCA (the Association of Chartered Certified Accountants) is the largest and fastest growing international professional accountancy body in the world.  We currently have almost 320,000 students and members in more than 160 countries. The organisation has  over 70 offices worldwide, including a Caribbean office which is based in Trinidad. www.accaglobal.com