Is a Business Degree Worth It? Key Facts and Statistics
Data Summary
- The average annual salary for professionals with a bachelor’s in business administration is $79,000.
- The mean starting salary for 2023 graduates with a bachelor’s in business was $66,580.
- In 2022, bachelor’s degree holders in business earned a median annual salary of $43,200 after debt.
- Most careers in business and finance require at least a bachelor’s degree.
- About half (51.4%) of business owners have a bachelor’s degree or higher. A degree may help aspiring entrepreneurs learn valuable financial tools and frameworks.
- School choice and other factors impact your degree’s return on investment; networking makes a difference.
Business is the most popular major for undergraduates — and one of the least regretted. But why? And is it always worth the time and investment?
Business degrees, like a bachelor of business administration (BBA), are undergraduate degrees that focus on the skills and knowledge needed to enter the world of business and finance.
According to the Bureau of Labor Statistics (BLS), professionals working in business and finance earned a median salary of $80,920 a year in May 2024,far higher than the median salary for all occupations.
This report answers why getting a business degree is an attractive choice for students, what it costs, and how much it pays off.
Did You Know…
A BBA isn’t the only kind of business degree.
Many schools offer bachelor of science degrees in business or business administration (BSB or BSBA). For example, Washington University in St. Louis offers a BSBA program in which students can choose from eight majors, such as accounting, finance, and marketing.
These bachelor’s degrees aren’t to be confused with a master of business administration (MBA) degree. An MBA may be worthwhile if you already have a bachelor’s degree and you want to excel in your career and boost your earnings potential.
Why Get a Business Degree?
Whether you should get a business degree comes down to your specific goals. Here are some upsides and things to consider.
There’s high demand for business degree graduates.
According to a report by the National Association of Colleges and Employers (NACE), 75% of people who graduated with a bachelor’s in business in 2023 were employed by the time of the survey in 2024. About 13% were continuing their education and less than 10% were seeking work.
By comparison, 62% of all bachelor’s degree graduates were employed, 20% were continuing their education, and about 12% were seeking work.
Business salaries are competitive.
According to the BLS, the median annual payout for professionals in business and finance was $80,920 in May 2024. The median salary for all occupations during the same period was just $49,500.
Business and finance jobs typically require at least a bachelor’s degree.
Among the 32 business and finance occupations listed by the BLS, 28 typically require a bachelor’s degree.
If you want to start your own business, you don’t technically need a degree. (According to a Kauffman Foundation report, only half (51.4%) of business owners had a bachelor’s degree or higher in 2020.) But it might help.
Neil Gallagher, a 2020 grad from University of South Florida’s Muma College of Business, began working in finance before starting his own roofing and solar company. He said that in finance, earning his business degree was a must.
If I knew I was going to go the path I did, it may not have been a necessity, though it certainly helped,
Gallagher said of his degree. The more specialized coursework allowed me to really get my business off the ground.
Business degree programs teach skills for multiple sectors and may offer dual-degree options.
Undergraduate business programs often offer a wide variety of majors, specializations, or courses under the umbrella of business administration, such as human resources, marketing, or healthcare administration.
Additionally, some business degree programs offer dual degrees. At the prestigious Wharton School at the University of Pennsylvania, 30% of students earn more than one degree, combining their business education with international studies, nursing and healthcare management, technology, or life sciences.
A business degree may help you leap over the learning curve.
Business bachelor’s degree programs may help you learn tools, methods, and frameworks for solving complex problems in business.
Here’s an example from Loyola University Chicago’s Quinlan School of Business. (We like that this school spelled out just what students are supposed to learn in the BBA degree program.) Students in the BBA in finance should, among other things:
Possess analytical skills to utilize sophisticated models, manage large data sets, and make decisions under uncertainty.
Possess sound understanding of various business aspects (accounting, economics, statistics, etc.) and a deep understanding of basic financial concepts and theories.
Be able to apply financial concepts and theories in the workplace.
Theoretically, you could gain experience with these concepts on the job with the right opportunities and mentorship. However, formal degree programs are designed to prepare you for job readiness at graduation.
And build a network of classmates, instructors, and alumni.
Reaching out to folks who share your alma mater can be a clutch networking strategy — even better when those contacts also work in business and finance.
Plus, some undergraduate business degree programs are housed in business schools that award advanced degrees too. As an undergraduate, you can network or learn from MBA grads from your school.
For example, Indiana University’s Kelley School of Business boasts a network of over 137,000 alumni and hosts events nationwide.
Is a Business Degree Worth It? Cost, Time, and ROI
Costs
$72,320
Average Total Cost(2019-2020)
$30,500
Average Student Loan Debt
Gains
$66,580
Median Bachelor’s Degree Salaryat Graduation (2023)
$79,000
Average BBA Salary(All Career Stages)
$101,000
Average MBA Salary(All Career Stages)
Cost and Student Loan Debt
Tuition and total costs for business degrees vary widely by school. In general, the average cost of college is more expensive at private universities than at in-state public schools and highest at the most selective universities.
According to the National Center for Education Statistics, in 2020, the median cost business undergraduate majors reported paying for a year of college was about $18,080.
Also, keep in mind that tuition costs can turn into debt later on. Roughly 61% of undergraduates who earn their degree take on debt to pay for their education. The average student loan debt for a bachelor’s degree was $30,500 in 2019-2020.
Time and Opportunity Cost
Bachelor’s degree programs typically take about four years to complete. If you stop working to attend school full time, you may miss out on opportunities in these four years to earn income, learn on the job, or start your own business.
But keep in mind, some business degrees are accelerated, and online programs may be self-paced. Plus, having a degree generally pays off in the long run.
Potential Salary and Return on Investment
According to the NACE, college students who graduated with a bachelor’s degree in 2023 reported making a median salary of $63,720.
With more years on the job, you may increase your earnings potential. According to Payscale, people with a BBA reported an average annual salary of $79,000 as of August 2025.
Folks who went on to complete an MBA earned an average salary of $101,000 per year during the same period.
Payscale reports salary information from people at all career stages, including mid- and late-career professionals.
Is Business School Worth It — Hear From a Graduate
A degree from a top business school is absolutely worth it,
says Michael Chan, a 2024 graduate of Emory University’s Goizueta Business School.
There are so many exciting and unique opportunities at business schools like Goizueta, and whether or not you’re looking to maximize your earnings potential or enter into a specific career path, you have the space to explore your passions and apply your background in a complex workplace.
How did your business major make you more employable?
Chan says his school’s emphasis on application-based coursework, cases, and group presentations
gave him the necessary experience to land internship interviews.
When applying for jobs, Chan says having internships, business org involvements, and participation in business competitions
listed on your resume are what most companies require before even speaking a word to you.
I’m glad that I took advantage of those opportunities … at Goizueta.
What resources at your school were most helpful?
Chan responds that Goizueta Business School’s Career Management Center was a key resource
for him.
It offered career opportunities, interview prep, and mentorship opportunities from more senior business students.
Goizueta’s faculty and staff are also closely involved with students in their recruiting efforts and flourishing.
I’m happy to have had their support in my time at Goizueta,
concludes Chan.
Salaries for Business Degree Earners by School
In 2022, Georgetown University’s Center for Education and the Workforce estimated the average salary after debt for graduates of bachelor’s degree programs in business administration, management, and operations, two years after graduation.
The center found that bachelor’s degree holders in business earned a median annual salary of $43,200 after debt. But, the project found that some programs’ graduates gain more than others.
Keep in mind that these tuition and potential salary figures are based on large sample sizes. The ROI of your specific degree will depend on several factors, including your future job, location, and the school you choose.
Business Degree Programs Where Grads Earn the Most
Grads from the University of Pennsylvania, Bismarck State College, and Washington University in St. Louis had the highest earnings post-graduation — at least $90,000 a year.
School | Major | Annual Earnings Net of Debt Payment |
---|---|---|
University of Pennsylvania | Finance and Financial Management Services | $121,200 |
Bismarck State College | Business Administration, Management, and Operations | $103,200 |
Washington University in St. Louis | Finance and Financial Management Services | $90,000 |
Villanova University | Business/Managerial Economics | $87,600 |
Georgetown University | Finance and Financial Management Services | $84,000 |
University of Notre Dame | Finance and Financial Management Services | $84,000 |
Baylor University | General Sales, Merchandising, and Related Marketing Operations | $82,800 |
University of Michigan-Ann Arbor | Business Administration, Management, and Operations | $81,600 |
University of California-Berkeley | Business Administration, Management, and Operations | $80,400 |
New York University | General Business | $80,400 |
Online Business Degree Programs
Several top online BBA programs and fully online business management programs also produced graduate salaries that were above average.
School | Major | Annual Earnings Net of Debt Payment |
---|---|---|
City University of Seattle | Business Administration | $48,000 |
University of Houston, Clear Lake | General Business | $48,000 |
Lewis University | Finance | $46,800 |
University of Arkansas at Little Rock | Accounting | $45,600 |
Florida Atlantic University | Accounting | $45,600 |
SUNY Empire State College | General Business | $45,600 |
Franklin University | Business Administration | $44,400 |
Indiana University East | General Business | $44,400 |
Fresno Pacific University | BBA | $42,000 |
McKendree University | Management | $40,800 |
Sources
- Bachelor of Business Administration (BBA) Degree. Payscale. August 2024.
- First Destinations for the College Class of 2023. National Association of Colleges and Employers. October 2024.
- The Most Popular Degree Pays Off: Ranking the Economic Value of 5,500 Business Programs at More than 1,700 Colleges. Georgetown University Center for Education and the Workforce. September 2022.
- Occupational Projections and Worker Characteristics. Bureau of Labor Statistics. September 2022.
- Educational Attainment of Business Owners Ewing Marion Kauffman Foundation. February 2020.
- Business and Financial Occupations. Bureau of Labor Statistics. May 2023.
- Coordinated Dual Degree Programs. Wharton School of the University of Pennsylvania. Accessed August 2025.
- Alumni. Indiana University Kelley School of Business. Accessed August 2025.
- Student Budget by Field of Study, Undergraduate Programs. NCES. National Postsecondary Student Aid study: 2020 Undergraduates. Accessed August 2025.
- Table 331.95. Percentage of undergraduate degree/certificate completers who ever received federal loans and parent PLUS loans and average cumulative loan amount, by degree level, selected student characteristics, and institution control: 2019-20. NCES. August 2024.
- Earnings and unemployment rates by education attainment, 2024. Bureau of Labor Statistics. August 2025.
- Master’s of Business Administration (MBA) Degree. Payscale. August 2025.