There are different types of business degrees with a wide range of names – MBA, MiM, MSBA, MFin, MSSCM, and the list goes on.
But which type of business degree works best? MBA, or MSc with a business specialisation?
Logical questions for anyone meandering through the maze of business degree options. For more reasons than one – experience, outcome, costs, opportunities, and the lot.
“Why MBA?” is a question that has been beaten to a pulp in our lengthy discussions in previous articles. In the interest of brevity, let’s go over some basic stats before we skim over the types of graduate business degrees and how they compare.
In the world of graduate management education, or GME, the current post-pandemic application trends show an overall decline (-3.4%) over the past year, according to the GMAC Application Trends Survey from 2022.
Among those, the MBA seems to have taken a hit of over 6%, with student and recruiter surveys citing the focus on employee retention rather than new recruitment, discouraging the MBA demand. However, MBA still remains popular enough among 80% of business school applicants.
Business Master’s programs on the other hand is on the rise in demand by over 3% in 2022, still smaller in comparison to a sharp rise in MS business applications in 2020.
With the popularity of MS programs being more among international candidates, schools state that 2 out of 3 candidates consider MS in their future plans.
The most popular being MS is in Finance (21%), Data Analytics (19%), followed by the general MS in Management (16%). But MS programs are fewer in number and take in fewer candidates than MBA.
There is no one direct response to why one degree is better than the other. The answer to “MBA vs MS Business” can only be explored if their intent match up to your needs from a graduate degree. Let’s explore.
What is a Business Master’s degree?
A Master’s in business degree, in one of its many flavors, offers applicants with typically none to few years of work experience, to obtain a theoretical (with some practical) understanding of business concepts.
But talking about MS in business degrees brushes broadly over the many varieties that offer from a generalist to a specialist approach to business education.
Let us walk you through some of the many different kinds of Business MS degrees – both specialized Master’s degrees and general business Master’s.
Types of Business Masters degrees
Here’s a representative list covering the different types of business degrees, along with a quick overview of each.
Master in Finance
MS in Finance offers a deep look into all finance related topics like economics, quantitative finance, etc. It comes in alternate avatars like M.Fin., MiF, MSF, or the more quantitatively inclined Master in Financial Engineering (MFE).
Master in Accounting & Financial Management
In this Master’s, students are geared to understand the various tools of financial management and accounting – cash flow, salaries, financial reporting, etc. – to become financial experts in various corporations.
Master in Business Analytics (MSBA)
This business MS degree makes students experts in data driven business decision making. Besides being extremely marketable, this degree is also versatile, seamlessly transforming into data science, big data technology, and other applications.
Master in Supply Chain Management (MSSCM)
An MS in SCM equips students to deal with logistics and resources like suppliers, purchasing, inventory, transportation, storage, manufacture etc. They deal with both management and clients and play a role in product management.
– MIT Supply Chain Management (SCM) Master’s Program Review
Master in Marketing
MS in Marketing, or an MS in Brand Management, will make graduates familiarized with marketing skills, consumer behavior, and other marketing tools to develop solutions to various challenges in sales and profit.
Master in Human Resource Management (MHRM)
An MS in HR Management helps graduates understand the workforce capital of an organization. They learn HR Analytics, Talent Management and Compensation, Hiring and Labor Laws, Interpersonal Relations and Leadership, and other crucial aspects that are integral to maintaining a healthy corporate workforce.
Master in Information Systems (MIS)
This degree helps students understand how to utilize information technology to drive a business forward, making strategic decisions based on such tools.
Master in Entrepreneurship
Though success in entrepreneurship has much to do with the attitude to start something on your own, an MS in Entrepreneurship can make the process incredibly smooth with training in practical business knowledge and strategies. It thus helps in decision making and enables new businesses with the confidence to sustain on their own.
Master in International Business (MIB)
An MIB degree helps students understand business in the global context – doing business with and in foreign markets, managing international politics and economic differences for your business, and the social implications of involving international elements in business.
There are more kinds of specialist Master’s degrees in business if you are willing to dig more. Some may specialize on even narrower areas within broader topics. Besides them, there are also another set of business degrees with lesser commitment to one area.
They focus on delivering a broader understanding of multiple, creating a generalist and wholesome business knowledge. Here are two particularly famous generalist business degrees.
Master in Management (MiM)
A Master in Management is a generalist degree, much like the MBA but typically focused on theoretical instead of a practical approach like the latter. It is designed to lay a strong foundation of business knowledge with the option of taking up specialization courses in finance, marketing, consulting, etc.
Master in Business Administration
An MBA needs as much introduction as Tom Cruise at a Hollywood party. It is by far the most popular and star degrees in business education.
It came long before the rest of the MS options and focuses in a wholesome practical business education, commensurate with internships and elective options for specializations.
Which type of business degree should you choose – MBA or MS?
What draws a distinct line between the MBA and other MS degrees in business, whether specialist or generalist in nature, is the intent and nature of the two degree types.
Let us explore a few business degree programs to get clarity and then summarize the comparison between MBA and MS business programs, later.
| Business School | MBA | MiM | MS Finance | MS Business Analytics | MS Marketing |
|---|---|---|---|---|---|
| HEC Paris:
Duration Tuition Avg Age Avg Salary |
16 months €80,000 30 years €120,000
|
2 years €49,300 23 years €66,000
|
18 months €36,250 23 years €58,000 |
NA* |
21 months €30,650 23 years €39,000 |
| University of Oxford Said:
Duration Tuition Avg Age Avg Salary |
1 year £71,440 25-43 years £101,603 |
NA | MS Financial Economics
9 months £52,560 22 years £58,000 |
NA | NA |
| MIT Sloan:
Duration Tuition Avg Age Avg Salary |
2 years $160,800 29 years $165,000 |
MSMS
9 months $80,400 4 years work exp. (Recent grads eligible) Not available |
18 months $118,450 16 months work exp $108,000 |
MBAn
12 months $86,300 18 months work exp $128,000 |
NA |
| Columbia Business School:
Duration Tuition Avg Age Avg Salary |
2 years $80,000 per year 28 years $150,000 |
NA | MS Financial Economics
2 years $61,000 24 years Not available |
NA | MS Marketing Science
12 months $70,000 24 years Not available |
| INSEAD:
Duration Tuition Avg Age Avg Salary |
10 months €98,000 23-36 years $110,000 |
14-16 months €49,500 22 years $60,000 base
|
NA | NA | NA |
| Cambridge Judge:
Duration Tuition Avg Age Avg Salary |
12 months £64,000 29 years £96,429 |
NA |
12 months £50,000 4 years exp $140,000
|
NA | NA |
Data from individual b-schools. *Program doesn’t exist.
The table, below, summarizes them broadly.
| MBA Degree | Business MS Degrees | |
|---|---|---|
| Applicant Type | Students have an average 4-5 years of work experience.
Also, students can come from any background. |
Mostly fresh undergraduates or up to 2 years of work experience. Typical student profiles belong to business undergraduates or graduates from a quantitative/economics/commerce background. |
| Curriculum | Practical experience, case studies and internships included. Focus is on peer based learning and industry relevance. | Theoretical approach with deep dive into fundamentals. Internships may be included but not the primary focus. |
| Cost of Education | Average MBA can charge upwards of $100,000 for 2 years of full-time program. Europe may offer one-year options with a lower price tag. | Average MS tuition is much less than MBA. Students have the opportunity to get Teaching/Research Assistantships as well. |
| Recruitment | Typically hired with higher pay than other MS degrees. The work experience and MBA training leads to higher management roles. | Typically hired in entry-level roles with compensations less than an average post-MBA salary. |
| Post Degree Goals | Students pursue MBA for career change or accelerating their growth within the same industry. | Students are known to pursue CFA certifications or PhD degrees by getting into research. |
| OPT Extension | Most US based MBA programs do not enjoy a STEM distinction. Hence, no 24 months OPT STEM extension after graduating with an MBA from an US University. (Top STEM MBA Programs) | MS programs like Finance, Financial Engineering, Business Analytics, and a few more fall under the STEM distinction category. Thus, there is an automatic permission of 2 years of OPT extension allowed upon completion of the standard 12 months of OPT. |
In selectivity too, in many cases, MBA is a far more competitive degree requiring steep GMAT scores (700+) and background, both educational and professional.
According to the GMAC Application Trends Survey 2022, the median acceptance rate of all business Master’s programs is about 64%, with 52% enrollment rate.
Typical class sizes are less than 40. In MBA, the median acceptance rate is about 50%, with top b-schools going well below 10%. Class sizes are larger than MS programs.
So, which degree is appropriate for you?
– Do you have enough years of worthwhile work experience to make a strong MBA application?
If you have credible experience and you are looking for an MBA to supplement and enhance your business knowledge, OR, change your career track and area altogether, then an MBA is fit for you.
– Do you want to enhance your fundamental understanding of a business specialization?
If you are relatively new in the job market and want to increase your expertise before embarking on a niche entry level role, OR, opening the door for research and academia, an MS degree is your answer.
– Can you afford your education?
An MBA, as is famously known, is very expensive. Not to mention the opportunity cost of being out of payroll for 1 to 2 years. Though it helps to have a much more massive payday in MBA vs MS in business, only you are best suited to weigh the economic scales and judge your best option.
MS degrees are typically shorter and cheaper as compared to MBA but being younger without personal commitments and student loan debts can make them appealing for some.
And while you are sorting your dilemma, remember to just ask yourself – what is your end goal?
Speak to us if you need professional help: info [at] mbacrystalball [dot] com
And dive into our repertoire of articles to help you gain better perspectives.
– Masters degree blogs, including success stories
– Master in Finance vs MBA
– MS in Business Analytics vs MBA
– MBA vs Master in Management
– MBA vs Master in International Business
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