Is a Business Degree Worth It? Key Facts and Statistics

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 $76,570 a year in May 2021, far higher than the national median salary.^[6] At the same time, college comes at a cost.

This report answers why getting a business degree is an attractive choice for students, what it costs, and how much it pays off.

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), 74% of people who graduated with a bachelor's in business in 2021 were employed by the time of their survey in 2022. About 13% were continuing their education and another 11% were seeking work.^{Note Reference [2]}

By comparison, 60% of all bachelor's degree graduates were employed, 22% were continuing their education and about 13% were seeking work.^{Note Reference [2]}

Business salaries are competitive.

According to the BLS, the median annual payout for professionals in business and finance was $76,570 in May 2021. The median salary for all occupations during the same period was just $45,760.^{Note Reference [6]}

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.^{Note Reference [4]}

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.^{Note Reference [5]}) 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 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.^[7]

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 127,000 alumni and hosts events nationwide.^[8]

Is a Business Degree Worth It? Cost, Time, and ROI

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 versus in-state public schools and highest at the most selective universities.

According to the National Center for Education Statistics, in 2015-2016, the median cost business undergraduate majors reported paying for a year of college was about $22,040.^[9]

For reference, that's over $88,150 for four years — or in today's dollars, about $112,000.^[10]

Also, keep in mind that tuition costs can turn into debt later on. Roughly 57% of undergraduates take on debt to pay for their education.^[11] The average student loan debt for a bachelor's degree was $26,190 in 2017-2018.

Time and Opportunity Cost

Bachelor's degrees 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.

According to the BLS, the median annual wage for a high school graduate in the U.S. was $42,070 in 2021. Over four years, that's almost $170,000 of lost income.^[12]

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 2021 reported making a median salary of $57,190.^{Note Reference [2]}

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 $73,000 as of June 2023.^{Note Reference [1]} Folks who went on to complete an MBA earned an average salary of $96,000 per year during the same period.^[13] Payscale reports salary information from people at all career stages, including mid- and late-career professionals.

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.^{Note Reference [3]} 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.

Online Business Degree Programs

Several top online BBA programs and fully-online business management bachelor programs also produced graduate salaries that were above average.

Does School Prestige Matter?

Gallagher says the answer to that question is ultimately up to you and what you want to do with your career.

I attended a state school with good relationships in the Tampa area. My degree was as good as anyone else's, he said. I imagine if I had gone to a top school, my application would have been looked at a bit more closely. If you're trying to work in high finance in New York or other major cities it also may be more helpful to have a top university.

Gallagher, who landed his first job at a school networking event, advises that prospective students put work into networking and building connections, regardless of their schools' name or prestige.

Always strive to do the best you can and attend the school that you feel is best for you, he said. If you get involved in your school's communities, doors will open.