Although both degree titles incorporate the term “Master”, the route to graduation, as well as, the approach itself vary substantially between them. What we are talking about is the difference between the Master of Business Administration (MBA) vs Master programs including the likes of MA or MSc. The three variants are perhaps the most common to come across and their impact on the landscape of business education is immense. This is predominantly due to the Master degree being the last element of education one completes, prior to entering a full-time career. In this post, we will look at some of the differences that distinguish those degrees, in effort to separate out what are effectively two different paths that exist when it comes to post-bachelor degree education.
The oversaturation of programs in the business studies sphere is a well-known phenomenon that intensified ever since the COVID-19 pandemic showed that we can complete studies remotely. Business schools in addition to offering a suite of in-class programs, began offering online study degrees and specializations. Economic pressures meant that, accessibility to discounted study programs became widespread and at the same time, differences between Master and MBA studies diminished, putting the two types of programs on par. The differences still exist and they are quite profound, when it comes to the goals of each degree type, the delivery method, or entry requirements. Misconceptions exists also when talking about the two types of degrees in the context of internships and study abroad availability as well as post-graduation options that each degree carries.
Goals of MBA vs Master studies
A very important thing to distinguish in the debate over MBA vs Master studies are the goals of each program. The tendency to equate the two is erroneous as the programs have been designed with completely different objectives in mind. An MBA is a creation of Harvard Business School, although it is rooted in 1908 and the Master of Science in Commerce offered by Dartmouth College in the US. The nomenclature at that time can be excused because MBA as a product was still very local and only once it became a globally known and recognized qualification around the 1990’s and early 2000’s, we could become a bit more preoccupied by the major differences between the two. In no small contribution, culture also affected the way we see the programs as MBA studies and Master studies played different roles in education systems of the US, Asia, Europe and elsewhere around the world. The incorporation of the new MBA concept was never going to be easy and owning to cultural differences, as well as needs of different economies, an MBA degree from France, differed in approach to that of one issued by a US institution or one in South Korea.
Whilst differences have to some extent been mended through accreditation bodies, the goals of an MBA degree from the beginning were not to make its students experts in a single field of study. As a more commercial “top-up” used to deliver managerial skills portfolio rather than book knowledge, MBA’s goal is to prepare graduates for executive positions, people with some experience who want to take on a particular function but perhaps need additional training in accounting, finance or marketing to succeed in the new role. Master’s degrees on the other hand tend to come with specializations. Whether it’s an MA or MSc, there exists a plethora of subjects the degrees cover, including International Management, Brand Management, Business Innovation or Finance. Each of those dives deeper into certain areas of business where an MBA may be scratching a surface. Concentrated studies can help to build foundations for completion of PhD degrees at a later stage, but also form solid basis on which one can access corporate graduate programs upon finishing studies. An MBA degree also offers this opportunity however due to smaller number of credits and comprehensive but shallow look into business functions, may limit possibilities to graduate positions and traineeships.
Delivery of MBA vs Master studies
In the debate of MBA vs Master studies, we can also distinguish between the delivery methods of different programs. As established in one of the earlier posts, an MBA can be delivered in-person, hybrid, or online and there are many options to choose from when it comes to the ratio of live vs asynchronous content and self-study elements. Less in-class contact in general means lower price and as a rule-of-thumb, the lower the price, the more one has to look for accreditation and recognition of the degree. For Master programs, this is rather different because majority of programs are only offered on full-time in-person basis. This began changing with Covid-19 where schools spotted an advantage of virtual delivery and it is becoming a new trend that’s getting more popular.
As far as the delivery goes, there are plenty of options one can choose from. With MBA studies taking around 12-months of full time, Master programs tend to be a little longer with around 15 to 18 months in total. A lot depends on the number of credits they carry and as for Europe, the universal ECTS system provides a very good guideline. In that respect, both MBA and Master degrees when recognized and accredited are able to deliver credits with some programs seeking affiliation to deliver the forementioned accreditation. It is also quite typical for MBA degrees to be delivered in English with some regional exceptions. When it comes to Master studies, the programs offered can range in options with both English and local language tracks but also a bilingual track where selection of modules is available in the local language and another part is delivered in English.
MBA vs Master – What do I need to study?
One major difference in the MBA vs Master debate are the entry requirements for candidates of each program. Being a more trade-based degree, MBA studies often ask applicants for full-time work experience, completed after graduation from their first degree. Schools have the freedom to determine their own requirement in that case, however, one may consider the two years of continuous employment as a basic requirement for most full-time programs. This is quite typical for smaller schools where the approach to teaching is more individualized, but differs from the approach of large schools. Those tend to filter applicants by imposing higher thresholds, prioritize more experienced applicants whilst keeping a relatively low entry point, or simply have the capacity to host larger classes. A good sweet-spot for an MBA applicant is around 5 years of work experience because by that time, they have been exposed to variety of situations, tasks or projects that can be used to draw important lessons from. Applicants with lower work experience may find it more challenging to maximize learnings resulting from an MBA degree.
In comparison, Master programs tend not to demand work experience as a precondition to entry, which places the degrees on the market for recent bachelor study graduates. It may also be the case that somebody with work experience is willing to specialize in a specific area of business and therefore, the applicant needs to decide if proceeding with a Master’s qualification is the best option or if an MBA may be a better use of one’s resources. Whilst the Master’s degree does not typically require work experience, sometimes it is a requirement that a student studied business modules at Bachelor level to succeed. This is typically a sign of high-quality programs where students are challenged to go the extra mile, expanding their knowledge rather than commencing with the fundamentals. However, the requirement does not mean the doors to high quality, reputable institutions are shut to graduates of engineering, arts, social or medical sciences. In fact, good schools often provide online pre-master programs for non-business graduates, where one can bridge the gap and cover business fundamentals, or, use the pre-master program as an opportunity to see if business can be something they can pick up for their future. The programs can be completed online in a few months from the comfort of one’s home.
MBA vs Master studies abroad – Is this possible?
One valuable element that distinguishes MBA and Master study programs is the opportunity to make the most of globalization and study abroad. Now, of course one is not constrained by the confines of their own country and actually completing either one of these degrees abroad is a unique experience that impacts personal and professional life. MBA in Europe carries the benefit of access to labor markets of many developed countries, and for internationals willing to build their professional career abroad, this is an excellent opportunity to access those labor markets. Shorter duration means one can complete an MBA degree and embark on a professional career sooner with MBA in Germany guaranteeing an 18-month jobseeker’s visa. On the program itself, within the span of 12-months there is little scope to complete a substantial study abroad but there are opportunities such as the EMBA Consortium which delivers an executive level exchange program with a duration of one week.
In comparison, Master program study abroad has more to offer in the sense of semester abroad options which come as an option on many programs but also can be an integrated element of the degree. In those cases, one must often choose between an exchange semester, internship or a business project. The difference to an MBA here is that by having an integrated option to study abroad, length of the overall program increases. In case of Master exchanges, one can expect a typical semester of classroom study with light cultural immersion activities. Assessments would also apply which means one takes part in examinations, essay writing or presentation just like a local student. This would not be the case within an MBA and programs such as the EMBA Consortium where schools focus on delivery of mixed content on which they specialize.
Another option one may consider which applies to both MBA and Master studies is the dual degree option which operates on the basis of agreement reached by two schools directly. A student is then able to obtain either a degree of each institution or an accredited joint program certificate from one of the schools. These kinds of degrees are often aiming for delivery of unique experiences and global experience which also means one can expect to have intercontinental programs with a collaboration of institutions that are quite far apart. Study abroad is therefore something that applies to both MBA and Master degrees with the goals of each program determining the duration and scope of any potential exchange.
Return on Investment in the context of MBA vs Master studies
From the financial perspective in our MBA vs Master studies debate, it is very reasonable to look at the costs of studies and that is not only the tuition but also expenses and the hidden cost of time. Then it becomes a question of perspectives post-graduation, especially in the context of one’s potential salary or position. Only an assessment of those aspects can help us determine the true costs of one’s studies and even if, we could put a figure on it, it’s important to remember that each case is a bit different and there is no beaten track when it comes to return on investment with neither of those two possible routes.
When it comes to program costs, a good and accredited MBA is of course going to be more expensive in comparison to a Master’s degree. Depending on the school, the lowest priced degrees carry quite a bit of risk in the context of employability. Value of the degree and the school’s reputation is considered by employers which is why savings made on the degree program can have a detrimental effect on employability post- graduation. What stems from this is that return on investment for the cheapest degrees is proportionately smaller in comparison to that of degrees from the middle or top of the range in both MBA and Master programs. Salaries of MBA graduates are reportedly higher than those of Master students with an average of €81.000 in comparison to about €45.000. The figures of course depend on the level of experience, responsibilities and company size so they can and will vary.
Since MBA studies require prior work experience, it is expected that also the pay post-graduation will be higher than the pay of Master graduates. On the other hand, Master studies with integrated internships provide for a safer transition to a post-graduation job, specifically those offered under the label of “graduate programs” which focus predominantly on offering entry-level jobs for graduates. What they also offer is an opportunity to learn which may appeal to some, despite lower starting wage one can expect. This means they can also climb the corporate hierarchy, gathering experience and counting on mentoring of more experienced colleagues whilst acquiring experience. In some instances, for very senior positions having an MBA is important and one can see that the return on investment with choosing an MBA there. However, typically an EMBA program satisfies this gap later in the professional career which leaves it up to the applicant’s career strategy to determine what’s the best way to go about things.
So… MBA vs Master’s – It all depends…
There are many differences between a Master of Business Administration (MBA) and other master’s programs like MA or MSc. Once can classify those differences in goals, delivery methods, entry requirements, study abroad options, and return on investment. While both degrees aim to enhance career prospects, the MBA is generally designed to develop managerial skills for experienced professionals aspiring to executive roles. In contrast, a Master’s degree, whether in Arts or Science, delves deeper into specialized fields like finance or brand management, often targeting recent graduates or those seeking expertise in a specific area.
The COVID-19 pandemic influenced the educational landscape, leading to an increase in online program offerings and blurring the lines between MBA and master’s programs. However, MBAs typically require work experience, with admissions prioritizing applicants with a minimum of two years in the workforce. Master’s programs, on the other hand, rarely require prior experience, making them more accessible to recent graduates, though some programs may demand foundational knowledge in business-related subjects. Regarding delivery, MBAs are available in flexible formats—online, in-person, or hybrid—while master’s programs often require full-time, in-person attendance. Study abroad options differ as well, with MBA programs offering limited short-term exchanges and master’s programs providing semester-long exchanges or internships.
Financially, MBAs generally have higher tuition fees but promise a stronger salary potential post-graduation. Master’s graduates may initially earn less but often benefit from structured graduate programs that ease the transition into senior roles. Ultimately, the choice between an MBA and a master’s depends on one’s career stage, goals, and financial considerations, with both paths offering unique benefits and varying returns on investment or at best the time it takes for the returns to really begin making an impact.
If you would like to find out more, please visit our page “Master or MBA: The difference between a Master’s and an MBA”.
