phd vs mba

MBA vs PhD – Which Advanced Degree Path Is Better?

In the ever-evolving professional landscape, the pursuit of higher education remains a popular route to advance your career. But how do you choose between MBA vs PhD?

When it comes to MBA vs PhD, an MBA is for those seeking to climb the corporate ladder, transition into management roles, or launch their own businesses. A PhD is geared towards those passionate about research and academia.

In this blog post, we dive into the unique benefits and opportunities that each of these advanced degrees offers.

From the practical business acumen and leadership skills gained in an MBA program to the deep expertise and research contributions made by PhD holders, the choice ultimately hinges on your long-term goals and personal ambitions.

We’ll explore these two distinct paths, and learn how to make the best decision for your future success.

MBA vs PHD – In A Glance

What does a phd get you pros and cons.

A PhD , the highest academic degree achievable, can open numerous doors in the job market, enabling graduates to advance in their careers.

Unlike an MBA, which primarily focuses on corporate and management aspects, a PhD offers expertise in a specific field through rigorous research and study.

As a PhD student, your goal is to contribute new knowledge to your field, be it economics, finance, accounting, or any other discipline, by crafting a thesis that contains original research.

Through the PhD program, you not only earn a valuable qualification but also gain opportunities to publish your work and present at conferences.

These activities can enhance your reputation, making you more desirable to potential employers. The salary of a PhD holder often surpasses that of someone with only an undergraduate degree, as their expertise is in high demand.

From my personal experience, obtaining a PhD can be challenging yet rewarding. It allowed me to explore my chosen field, chemistry, in depth and opened up new avenues for career growth.

However, it is crucial to consider the potential drawbacks before embarking on this journey.

Pursuing a PhD entails a significant time commitment, typically around 3-4 years, and can be quite expensive, as tuition fees for these programs can be steep.

Acquiring a PhD can provide numerous benefits, including expert knowledge, a higher salary, and opportunities for advancement in your field. However, carefully weighing the pros and cons is necessary to determine if it’s the right path for you.

Should you earn an MBA instead for the business world?

MBA vs PhD is a crucial decision that depends on your career goals and personal preferences. While both are advanced degrees, they offer significantly different paths.

I asked an MBA graduate and this is what they said:

“ Having experienced the MBA program myself, I can vouch for its practical benefits. An MBA focuses on business acumen and managerial skills, enabling you to climb the corporate ladder more quickly than a PhD. With a two-year duration, it’s a faster route to increasing your earning potential and offers a significant return on investment. Business schools emphasize teamwork, entrepreneurship, and ethics, providing graduates with a well-rounded skill set for the business world. “

On the other hand, a PhD, such as a PhD in economics or any other discipline, is ideal for those passionate about research and academia. It requires several years of dedicated study, with graduates becoming experts in their niche.

PhD holders often pursue careers as researchers, professors, or consultants.

When considering whether to pursue an MBA or a PhD, weigh the pros and cons of each degree and reflect on your long-term career aspirations.

Both options can be rewarding, but they cater to different ambitions and provide distinct opportunities in the professional world.

Is an MBA equal to a PhD and doctorate?

An MBA and a PhD are both advanced degrees, but they are not equal due to their differing purposes and career outcomes.

As someone who has interacted with both MBA and PhD graduates, I’ve seen firsthand the unique benefits of each degree.

An MBA is a professional degree, taking one to two years to complete, and equips students with practical business skills.

This degree is popular among those aiming to climb the corporate ladder in industries like finance, marketing, or consulting.

On the other hand, a PhD is a research-focused degree, requiring several years of dedication and original research contributions.

A PhD in economics or other fields often leads to careers in academia or research. PhD programs are highly competitive and demand an intense commitment to writing a dissertation and advancing knowledge in the discipline.

The debate between MBA vs. PhD highlights the significant differences in their focus and career paths.

While both degrees can be obtained at a business school, they cater to different ambitions and provide distinct opportunities. The choice between an MBA or a PhD depends on one’s end goal, work experience, and personal preferences.

So What’s Better, a PhD or MBA?

When considering MBA vs PhD, it’s essential to evaluate your:

• personal interests,
• career goals,
• financial commitment involved in each degree.

A PhD offers the opportunity to deeply explore a specific subject, contribute to the advancement of knowledge in that field, and establish yourself as an expert.

However, the process is often lengthy and demanding, taking up to five or six years of intense research and dedication.

The payoff might not always be immediate in terms of career prospects, as academia and research can be fiercely competitive arenas.

On the other hand, an MBA equips you with practical business skills and knowledge, often leading to a broader range of job opportunities and potentially higher salaries.

The program’s duration is considerably shorter, usually taking one to two years to complete, and offers a faster return on investment.

An MBA is particularly well-suited for those seeking to climb the corporate ladder, transition into a managerial role, or even launch their own startups.

It’s important to note that some individuals choose to pursue both degrees, combining their research expertise with practical business acumen to excel in various fields.

Does Anyone Earn Both A PhD And An MBA? Why?

MBA vs PhD too hard to decide? You can get both. Yes, there are indeed individuals who choose to earn both a PhD and an MBA, although this path is less common.

Combining the two degrees can create a unique skill set that is valuable in various fields.

For instance, a PhD holder in a specialized discipline may opt for an MBA to gain practical business skills and a broader understanding of the corporate world, which can be valuable in leadership roles or entrepreneurial endeavors.

Pursuing both degrees also allows for building diverse networks, connecting with professionals in academia and the business world.

Despite the significant time and effort required to obtain both degrees, those who undertake this ambitious path often find themselves well-equipped to navigate multiple career paths and excel in their chosen fields.

MBA vs PhD Career Options

Both advanced degrees can lead to successful careers, but they differ significantly in terms of their focus and job prospects.

An MBA degree, with its emphasis on business administration, prepares graduates for roles such as:

• management consultant,
• marketing manager, or
• finance director.

MBA holders are more likely to climb the corporate ladder quickly and enjoy higher salaries. The MBA program equips students with practical business skills, making them suitable for leadership positions in a wide range of industries.

MBA holders can also consider going for a DBA degree as well.

In contrast, PhDs are more likely to become professors or researchers, with a focus on deepening their expertise in their chosen field. In science that is a very common career goal. 

While the earning potential for PhD holders may not be as high as for those with an MBA, they often find fulfillment in their academic pursuits.

Getting an MBA might be the better option for those eager to advance quickly in the corporate world and who possess a strong passion for business. 

On the other hand, getting a PhD might be more suitable for those who wish to delve into research and contribute to academia.

Wrapping Up

The decision between MBA vs PhD is a highly personal one, hinging on individual career goals, personal interests, and the level of time and financial commitment one is willing to make.

Both advanced degrees offer unique benefits and opportunities, but they cater to different career paths and ambitions.

An MBA is an ideal choice for those seeking to climb the corporate ladder swiftly, transition into management roles, or launch their own businesses.

With a focus on practical business skills, MBA graduates find themselves well-prepared for leadership positions across various industries.

On the other hand, a PhD is geared towards those passionate about research and academia, providing an opportunity to become an expert in a specific field and contribute to the advancement of knowledge.

While the journey may be more demanding and time-consuming, the satisfaction of making an impact in one’s chosen discipline can be deeply rewarding.

The best choice depends on your long-term goals, professional aspirations, and personal preferences.

Reflecting on these factors, researching each degree thoroughly, and seeking advice from professionals and peers can help you make an informed decision that aligns with your ambitions and aspirations.

Whichever path you choose, MBA vs PhD can be instrumental in unlocking a world of possibilities and shaping your future career.

Dr Andrew Stapleton has a Masters and PhD in Chemistry from the UK and Australia. He has many years of research experience and has worked as a Postdoctoral Fellow and Associate at a number of Universities. Although having secured funding for his own research, he left academia to help others with his YouTube channel all about the inner workings of academia and how to make it work for you.

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The MBA vs PhD Debate

• By Grace M.
• August 14, 2020

If there’s one question that seems to get business university professors flinching at, it’s the all-to-often “ what’s better – an MBA or a PhD? ”

The reason for this is clear – asking such a question seems to suggest that the result of obtaining an MBA or PhD is the same. This couldn’t be any further from the truth.

Let us first quickly break down what an MBA and a PhD is.

MBA is short for  Master of Business Administration , while PhD is short for  Doctor of Philosophy . Just from the first word of both types of degrees, we can already see that there’s an obvious difference between the two, but let’s proceed.

In terms of the required time commitment, an MBA will usually take two years to complete full time. On the other hand, getting a PhD can take four years (unless you decide to undertake it part time or enrol into an accelerated online PhD degree programme). So if time is your primary concern, then an MBA would be the obvious path for you.

As an MBA student, you’ll find that much of the learning curriculum is closely related to a professional environment. In fact, this is why some universities mandate at least one year of actual work experience as an entry requirement. As a result of the masters degree being so closely related to business in practice, an MBA student will usually research a broad range of subjects. Each of these subjects would focus on a unique business aspect such as accounting, consulting, economics, marketing, finance, leadership, management, ethics and trading.

On the other hand, a Business PhD student will only focus on one subject and do so in much greater detail. On top of this, the PhD student will usually also be expected to support lecturers with teaching classes and leading tutorial sessions.

The reason for this difference is because a doctorate is an advanced degree which aims to make you an expert in a specialised field. Because of this, a PhD is regarded as the higher professional qualification of the two.

MBA vs PhD Entrance Requirements

Due to the amount of funding available, a high number of applicants and a few available positions, the competition for entry into MBA and PhD programmes can be very high.

The specific requirements depend on the country you intend to study in; however, most MBA programmes require you to sit Graduate Management Test ( GMAT ) or Graduate Record Examinations ( GRE ). Regardless of whether you need to undertake a pre-qualification exam or not, most universities prioritise applicants who already have a level of professional experience.

The reverse is true for PhD programmes. For PhDs, you will require a relevant undergraduate or postgraduate degree (usually with a 2:1 or 1st), but you will not be expected to sit any pre-entrance exams nor will you be expected to have working experience. As a result, most students who do a business PhD are younger than those who do an MBA.

Earning your MBA or Doctorate Online

As if the MBA or PhD debate wasn’t enough, the online versions of these degrees are starting to get thrown into the comparisons. With the fast-developing rate of the internet and a general trend towards online global connectivity, higher education is experiencing a significant transformation.

Not only is it possible to get a doctorate online , MBA programmes and Masters in Project Management are also much more widely available online from top-ranking universities compared to several years ago.

While online learning may not be for everyone, many adult students, including myself, favour online degrees due to the flexibility they provide to on-campus or distant learning programmes. As someone who used to dedicate several hours a night on a university campus in a neighbouring area, take it from me, being able to study from your home office isn’t only easier, it’s much less stressful.

MBA vs PhD Career Options

So what gives a better return on investment in terms of career options, an MBA or a PhD?

The MBA is a specialised business degree, and as such, anyone who holds it is a valuable asset for any business. Industries are all about using employee abilities to the organisation’s benefit, and an MBA isn’t something an organisation should or will ignore.

Having a Masters in Business Administration is usually associated with greater career prospects. This is reflected in the speed that an MBA degree holder can climb the corporate ranks compared to an individual who doesn’t hold the specialised degree. Not only can they progress faster, but MBA holders typically also achieve higher positions during their career. This can include highly sought after positions such as associate directors and senior executives (assuming the student is ambitious and dedicated enough). Another benefit of getting an MBA is surrounding earning potential. It’s not unusual for those with an MBA from the London Business School, Oxford University or Imperial College London to receive starting salaries in excess of £50,000 a year .

In comparison, most business PhD holders won’t follow the same path as their MBA colleagues. Instead, most PhD graduates will enter into either a research or academic career. Because of this significant difference in the typical career path, which of the two types of degrees is better suited for you will depend on exactly what it is you want to do after completing your studies.

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PhD after MBA

Hopefully, it should be clear by now that an MBA and a PhD are two very different degrees, and because of that, it should also start to become clearer regarding which degree is for you.

If this isn’t the case, it may be useful to know that some business students, after completing their undergraduate degree, obtain an MBA and then move onto a PhD. This actually makes a lot of sense since the two forms of professional qualifications cover different stages of a student’s learning, and on that basis, there’s no reason why you couldn’t do both.

In fact, a few universities offer programmes that combine both degrees as a PhD-MBA dual degree. They are better known as PhD-MBA Integrated Degrees (or PhD-MBA Joint Degrees in US Graduate Schools) and can be the perfect option for anyone who wants to get the best of both qualifications. You don’t necessarily need an MBA for PhD eligibility, but they can prove beneficial as the transition from MBA to PhD will usually be less arduous than from Bachelors to PhD.

So what’s Better, a PhD or MBA?

The final answer depends on you. If you’re an individual who enjoys going up against others or the market, then an MBA will probably be the right option for you. On the other hand, if you prefer the realms of researching business theories, challenging yourself mentally and being able to pass on knowledge to others, then a PhD could be the better option. If both options sound interesting to you, then you may find a PhD-MBA dual degree of interest.

In the end, then, the question isn’t about whether an MBA is better than a PhD, but which one is personally better for you.

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Mba vs. phd: choose your advanced degree path.

In 2021, it is practically conventional wisdom that an advanced degree like a master’s degree, an MBA, a PhD, a JD or an MD is a necessity if you want to give yourself the best chance of a successful, meaningful career. While professional doctoral degrees like JDs and MDs will lead you down very specific career paths, it can be harder to envision the career outcomes associated with more versatile degrees like the MBA or the PhD.

People pursue these two advanced degrees for a variety of reasons, and no two journeys through higher education and into professional excellence are quite the same. If you are internally debating the merits of earning an MBA vs. earning a PhD, read some of the career pathways you might take with either degree—or with both of them.

Who earns a PhD? And what do they do with it?

People who pursue a doctoral degree typically do so out of a commitment to producing new knowledge at the leading edge of a subject or field that holds deep meaning for them. This can describe an incredibly diverse array of pursuits, from developing innovative new materials for medical devices and developing novel modeling techniques for research applications to examining archival records of media production and scrutinizing the linguistic elements of ancient texts.

People often earn PhDs with the goal of an academic career in mind. This is not necessarily the case in all scholarly disciplines, however, and even in those that tend to be more academic focused, recent trends may be demonstrating a shift. Those who earn PhDs in STEM fields or in the data-driven social sciences may do so with the end goal of a professional career in mind, specifically one where their skills at designing and conducting research will be rewarded with heightened responsibility and increased pay. And even in humanities disciplines with seemingly few analogues in the professional world, graduate students are increasingly envisioning their futures outside of the classroom as tenure-track and full-time professorships grow scarcer by the year.

How can a PhD help you in the business world?

The skills and mindset you develop in a PhD program are certainly applicable in the “real” world, regardless of whether your subject of choice has a direct pathway to a professional job. If you have earned a PhD in a STEM field, you will likely enter the professional workforce at a higher pay grade than you would without your degree. You may find yourself fast-tracked toward a management role as well, as your experience designing and overseeing research projects can position you well to lead a team of employees, manage workloads, and successfully meet deadlines.

PhD holders in the social sciences and humanities may also find their skills in high demand in the business world, even if they might need to spend a bit of time learning how to convey their value on a resume and in a job interview. Research in social sciences fields like sociology and political science often requires analysis of large and complex data sets; the skill set they develop in completing this work can translate easily into a business analytics role. And the persuasive writing, editing and organization skills humanities graduate students develop are well-suited to roles in strategic communication or marketing.

Should you earn an MBA instead?

If you are considering whether to earn an MBA or a PhD and you know your eventual goal is to obtain a leadership role in a business organization, the MBA is likely the right path for you. An MBA can make an immediate impact on your earnings and on the career opportunities available to you. It is also an extremely versatile degree, and can lead to advancement whether your career already seems to be heading down a relatively narrow path in a specific field or whether you intend to keep your options open for a potential pivot.

Additionally, an MBA might also be your best bet if the kind of fulfillment you get from your work comes less from successfully completing your assigned task or from navigating the day-to-day challenges of your particular area of technical expertise and more from positioning your organization for success. If you would rather dedicate your time and energy toward strategizing your company’s business goals and the best ways to achieve them, and to truly leading rather than simply managing , you should strongly consider enrolling in business school.

The most significant difference your choice to earn an MBA instead of a PhD will have on your life is on the amount of time and energy you have to dedicate to it. A PhD is a full-time commitment in which work typically balloons well past 40 hours per week, with little respect for evenings or weekends. It will take an absolute minimum of four years to complete, and more likely five to seven. An MBA, conversely, will typically be attainable in just two to 2.5 years and can be completed while you keep your full-time job—and your full salary. Seek out a top-tier online program if you would like your MBA studies to fit most conveniently around your existing schedule and responsibilities.

Does anyone earn both a PhD and an MBA? Why?

It is not unheard of for a single person to earn both a PhD and an MBA, but the order in which one does so is often determined by their eventual career goals, including by the way these goals might evolve over the course of their career. PhD holders who are working in fields that are directly related to their research may, after some years, opt to return to school for an MBA to help them prepare to climb the corporate ladder at large technical organizations. In smaller companies, such as engineering or biotechnology startups, the org chart may tilt heavily toward people with technical backgrounds rather than business ones; adding an MBA and the skills that come with it to your resume in an environment like this can benefit the entire organization.

Or, if you earn your MBA and spend time working and advancing in a professional field only to eventually realize your true calling is to teach others, you may choose to earn a PhD in economics or a business discipline to help you transition into a professorship in a business school. Preparing the next generation of business leaders can be extremely meaningful work, and many successful professionals decide the most positive impact they can make on the business world is by taking this route.

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MBA vs. Ph.D.: The Important Career Differences Explained

Choosing between MBA vs. Ph.D. can lead to a significant decision in your life and career. As an MBA with few Ph.D. friends, I will provide you with several critical hard truths in this article. I think you should know them before making final decision.

MBA and Ph.D. degrees are not equal. MBA was designed to train managers, and Ph.D. was created to train researchers and scientists. A Ph.D. generally is regarded as an academically higher accomplishment than MBA, but MBA is a quicker way to practical work and career. 

To understand the MBA vs. Ph.D. comparison, we need to do some industry analysis. Then, we will employ some useful MBA and Ph.D. salary statistics and investigate several other vital factors often overlooked by prospective students. Let’s start.

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Is MBA equal to a Ph.D.? 

MBA stands for master’s in business administration degree. Ph.D. stands for a doctor in philosophy. While both MBA and Ph.D. in business study business topics, they are very different degrees.

In terms of equality in a dispute between MBA vs. Ph.D., Ph.D. is the clear winner. 

Whether MBA is equal to a Ph.D. depends on how society and industry view both degrees. MBA vs. Ph.D. is entirely different.

MBA is not equal to a Ph.D. (doctorate) in any way, shape, or form. MBA is a graduate professional master’s degree, while a Ph.D. is a post-graduate research academic degree. 

Ph.D. is still regarded higher than MBA for many reasons, including deepness of study and research required for Ph.D. students. In addition, Ph.D. is the most advanced degree one can obtain in any field in the USA. 

MBA was designed to train managers who can manage the human and material resources of the company. Managers must make business decisions, recognize trends, have a vision. MBA manages processes, sometimes exploiting gut feeling based on experience, or works as analyst. 

Ph.D. was designed to train researchers and scientists who research and analyze data to extrapolate trends. Ph.D.’s recognize problems, and figure out solutions to them based on complex data instead of gut feelings. 

Companies and the public generally regard a Ph.D. as significantly more advanced than a master’s degree, including MBA. PhDs are considered subject experts and authorities on the topic of their Ph.D. research. 

There are many more MBA than business Ph.D. graduates each year. MBA is a commodity nowadays, while a Ph.D. in a business topic is still a unique qualification. 

The caveat is that an elite business school MBA is still more likely to be regarded higher than a Ph.D. from a low-ranking business program. 

Is MBA harder than a Ph.D.? The difficulty of MBA vs. PhD

Between Ph.D. and MBA, Ph.D. is more complicated. Ph.D. in business is harder to obtain degree compared to MBA. 

MBA is shorter, and students can complete a full-time MBA program in 2 years or less. Ph.D. may take longer than 5-7 years to complete. 

You should look at those years of studying as an opportunity cost.  Meaning, you lose the opportunity to get a job and work on your regular business industry career because you are pursuing MBA or Ph.D. instead.  

MBA is a general overview of most common business areas, and MBA students primarily learn about core business concepts in an overview form. 

The curriculum for most business MBA subjects has pretty much been established. Thus, MBA students have more structured studies with understandable steps, goals, and expectations.

As a result, MBA does not involve too much math and is generally straightforward on most occasions. 

On the other hand, Ph.D. is a narrow, intense, and deep research focused on a specific aspect of an area of the business subject.

Ph.D. research focuses on some unique and new theory or part of the previously not so profoundly researched business topic. Ph.D. in business often involves lots of math. 

Essentially, a Ph.D. is a deep immersion into unknown and unresearched theoretical depths of business. And if Ph.D. is in statistical, financial, economics, or some mathematical areas of business, then Ph.D. students must perform a heavy volume of advanced mathematical calculations.  

Plus, the Ph.D. program has much higher knowledge and analysis expectations from its students compared to MBA.

In a Ph.D. in business, a researcher spends multiple years studying, analyzing, and interpreting various data and extrapolating trends, rules, consistencies, and conclusions. 

Ph.D. work must prove a new point or theory by supporting it with heavy volume or research and plenty of arguments. MBA students do not have to do it. 

Usually, a Ph.D. must complete two years of coursework, teach for a couple of years, and then write a dissertation within another 1-3 years. So, Ph.D. can take seven years to complete. 

Ph.D. requires more heavy volume work than MBA. 

Which degree is better, MBA or Ph.D.? Is an MBA or Ph.D. better?

What is better – MBA vs. Ph.D. – is a very tough topic because Ph.D. is narrowly focused on some aspect of business, while MBA simply is an advanced overview of many business topics. 

Which degree is better, MBA or Ph.D., depends on personal goals.  MBA is better if one wants to obtain a degree and start looking for a job sooner.  MBA is more like a sprint.

But if someone wants to get into academia and teach or spend many years researching a specific topic and become a super-focused specialist, then Ph.D. is better. Obtaining a Ph.D. is a challenging marathon rather than a sprint. 

The MBA vs. Ph.D. outcome also depends on the rank of the business school where MBA or Ph.D. students obtain their degrees.

Either MBA or Ph.D. from elite top business schools like Harvard, Stanford, Yale, Wharton, or Columbia will be in demand, and good quality employers will be happy to hire such graduates.

On the other hand, neither MBA nor Ph.D. from low-ranking business schools by themselves will not result in a good job.

Except for when such MBA graduate either has previous relevant work experience or can obtain additional skills after MBA to become more marketable. 

Ph.D. in quantitative disciplines like finance, economics, or statistics, even from low-ranking business school may find a job as an analyst because of hard quantitative skills. But such a Ph.D. should not expect a high starting salary. 

MBA vs. Ph.D. and Employment Decisions

One note about MBA is as follows. While it limits employment opportunities, it is still a general degree that can lead to different career paths unless a person chooses some strong MBA specialization or concentration. 

Usually, MBAs are considered generalists suitable for entry-level or middle managerial positions, depending on their previous work experience.

However, MBAs without work experience may have a hard time finding jobs and may face the necessity to obtain additional skills or even more education to become employable. 

On the other hand, MBA is sufficiently enough for those who simply want to jump into a practical application of MBA knowledge by working in the business world.

MBA is better for an entrepreneur than Ph.D. because MBA has a more significant focus on practical aspects of managing and running a business. 

Ph.D. essentially limits employment opportunities even more than MBA. The limitation of job opportunities is inherent in the narrow-focused nature of Ph.D. research.

For example, doing a Ph.D. in finance or economics essentially narrows down employment opportunities to areas of finance or economics. 

On the other hand, a Ph.D. is considered an expert researcher in the chosen business topic. Still, most PhDs work in academia or research institutions and not in real-life business positions. 

Besides open teaching careers in education, some companies may want to hire such Ph.D. in analytical, consulting, or managerial positions because they understand that they have deep knowledge of business theory and practice. 

Ph.D. and MBA salary. Who earns more MBA or Ph.D.?

Mba salary statistics.

Let’s talk about Ph.D. and MBA salary and who earns more – MBA or Ph.D. I want you to take this statistical information about pay and who makes more with the grain of salt. Because average numbers must be interpreted only as average among a large pool of MBA’s or Ph.D.’s.

Some MBAs or PhDs earn more and change average numbers, but others will make less. You need to understand that media, academia, and everyone else interprets numbers in their self-serving way. 

College associations publish that $80,000-$90,000 is the average starting salary for MBA in 2020-2021. But that MBA salary number does not include those who dropped off the labor force because they could not find the work. And that salary number is affected by graduates from elite business schools who earn high salaries. 

A graduate from the Stanford MBA program, for example, may expect up to a $100,000-$225,000 average annual salary per year plus bonuses and benefits. Often that graduate already had prior successful business work experience to land a position in a good company. 

Example (hypothetical): 9 PhDs or MBAs get a $30,000 annual salary after graduation. 1 Ph.D. or MBA receives $200,000. What is the average wage among this pool of 10 graduates? That’s right. It is $47,000. 

OK, for starters, you would think by looking at the average. But nobody from the pool gets this salary. Most get only 30K per year. So, therefore, all the numbers out there are misleading. 

The Problem With MBA Salary Statistics

The majority of statistics focus on graduates from the top 100-150 business schools. That data is not representative because, in the USA alone, whooping 1190+ MBA programs are producing about 200,000 MBAs each year.

Even though about 9% of MBA programs in the US were shut down after 2014 for lack of enrollment, so many MBA programs remain. And only 132 of those business schools provided those earning numbers. 

And what about the other 1000 MBA programs which never supplied their statistics? They were not counted, so elite high-salaried MBA programs statistically swayed away average post-graduate salary upwards, and numbers look deceptively better than they are.

Still, some data suggests that the average salary for MBAs graduating from lower-ranking MBA programs is about $52,000 annually. I estimate the post-MBA salary average range to be from $50,000 to $70,000 annually. And that is with several years of previous relevant work experience.

Otherwise, MBAs will have to get an entry-level job with low pay and work their way up as professionals. 

And when MBAs graduate and cannot find a job, they are simply not included in salary statistics. For example, in 2008, there were about 100,000 MBA degrees awarded annually.

Now the number of graduates is closer to 200,000 each year. As a result, competition for jobs among MBAs is stiff.

But do not get discouraged. For those who have previous work experience and or can land a job after graduation, the average increase in salary for MBAs can be up to $20,000 compared to the average graduate with a bachelor’s degree in business (USA). Again, these numbers were affected by the earnings of elite MBA graduates. 

While that number does not seem like a huge jump, it adds up over the years. And with potential career growth, MBA salary prospects may be even better if you can find a relevant job after graduation.

In addition, fewer MBA enrollments mean less competition between MBAs in the future.  

Ph.D. Salary Statistics

Ph.D. statistics probably are more accurate because there are fewer PhDs in business produced each year. For example, there were only about 3630+ PhDs awarded in business areas in 2018-2019.  

In comparing Ph.D. and MBA salaries, we should also note that a Ph.D. degree still stands out compared to a commodity MBA with much fewer PhDs awarded.

So, who earns more, MBA vs. Ph.D.? When researching this blog post, I saw many cheerleading fantasy-world salary data in many different articles.

Unfortunately, it seems like some prominent media outlets either have no clue about the state of the job market in the real world, simply ignore it or focus only on some exceptional cases. So, I must extrapolate data piece-by-piece again. 

Well, Ph.D. was designed to work primarily in academia, and academia is not paying these days very much. First of all, a person pursuing a Ph.D. in academia usually makes around $30,000-$35,000 annual stipend. That is meager pay for 5-7 years of hard work. 

Not so many PhDs get into the business world doing practical work. So, for example, there is no need for a company to hire a Ph.D. in marketing when hiring an MBA with previous marketing or analytical work experience.

Let’s define which Ph.D. is beneficial. First, there is no doubt that Ph.D. in STEM majors can lead to a very lucrative salary. For example, browsing through job sites, I saw job postings where employers look for PhDs in robotics, AI, machine learning.

Employers are offering hundreds of thousands of dollars annual salaries because those are booming fields.

PhD Salaries After Graduation

PhDs in business do not enjoy such demand. Still, PhDs in various topics, on average, make more than 15%-20% salary upon graduation. Average Ph.D. may get anywhere from $50,000 to $120,000 or more annually, depending on the chosen field.

Social sciences pay the least, and math, analytics, or tech PhDs sometimes pay even more than $100,000 on average. 

Said that many starting salaries for PhDs on Payscale.com are as low as $44,000-$50,000, without experience. The lower-paying fields are education, human resources, some research institutions. 

The higher-paying fields for PhDs are where complex calculation and analysis are required – finance, economics, business analytics, statistics, and so on. Such quant PhDs starting as analysts can land anything from $70,000 to three figures, depending on the level of experience.  

Specifically, according to PayScale reports, Ph.D. in statistics or computer science may make over $100,000 annually.

On the other hand, ph.D. working as an analyst in operations, marketing, business research, probably realistically will make about $70,000-$90,000 annually upon graduation. 

Those PhDs who eventually make it into management generally will see three-figure salaries mid-career after 5-6 years of work. 

Conclusion about MBA vs. Ph.D. salaries. 

A significant problem with all these data, statistics, and attempting to figure trends is that the business world is now changing so fast that much of this data may be obsolete five years from now.

For example, Tech may replace whole industries with robots, and new high-paying industries may appear. So, this blog post intends to see the current situation in MBA vs. Ph.D. debate. 

Generally, Ph.D. in business does not yield a much higher salary than an MBA from one of the top 50 business schools unless Ph.D. is from an elite business school.

Pursuing a Ph.D. requires many years of demanding work, dedication, and sacrifice while forgoing potential work experience you could obtain by starting to work after an MBA. 

Let’s talk about specific examples of different types of MBA vs. PhDs.

MBA vs. Ph.D. in finance (with salary comparison)

MBA vs. Ph.D. in finance is an incorrect comparison because these are two drastically different degrees. As mentioned above, an MBA is a generalist degree even when an MBA student chooses concentration or specialization in finance.

In contrast, Ph.D. in finance is a degree issued after research focused on a specific new topic in finance. 

Ph.D. in finance involves learning and research in the following areas: finance, financial markets, economics, corporate finance, investments, statistics, advanced math, econometrics, risk management, and other relevant topics. 

Ph.D. in finance can take 5-6 years to complete vs. two years for MBA. Most PhDs in finance work in education or research institutions.

Deep knowledge of finance may allow a Ph.D. in finance graduate to obtain a research and analysis position within the financial industry. 

I think that Ph.D. in finance from a low-ranking institution is likely to yield a research or education job. But a Ph.D. in finance from top-ranking elite business schools is more likely to open doors in the business industry.

Consulting firms, banks, hedge funds, securities firms, investment research, and similar entities will likely hire elite Ph.D. graduates with good salaries. 

Such industry professions as a financial manager, financial analyst, actuary, finance teacher are often cited as prospective growth careers for those with Ph.D. in finance. But majority of PhDs end up in academia or research institutions.

I also think large financial institutions, such as investment banks or hedge funds may hire elite Ph.D. researchers to research macroeconomic and financial trends. And such institutions probably pay the most. Policy research institutions hire PhDs as well but for a lower salary. 

How much can you make with a Ph.D. in finance?

There is little data on Ph.D. in finance as most hirings go in confidence. Colleges will advertise $180,000-$220,000 post-graduation salary for Ph.D. in finance but remember that they promote their Ph.D. programs to prospective students and puff the numbers. 

First, a teaching job for Ph.D. in finance will pay around $60,000-$90,000 annually because the education industry generally pays less. The business industry will probably pay on average $80,000-$100,000 to start with, depending on the school rank. 

Some firms and companies may pay more, but those are rather exceptions.  And Ph.D. must be from one of the top business programs in the country to obtain more than $120,000 starting salary after graduation.  

My research on jobs sites revealed that it is not uncommon for Ph.D. in finance to make around $100,000 in a quantitative analytical position in the finance industry.

And with career progress and proven success record Ph.D. in finance can make more than $120,000-$150,000 or more by moving into a managerial position.

Why is MBA better than Ph.D. in Finance?

It is tough to get into Ph.D. in finance program because only about 0.3%-2% of applicants are accepted. It is a very long and challenging process until graduation. In addition, ph.D. in finance requires hardcore math skills. 

It is tough to get published in top financial research publications. And if you do not get published often, then after Ph.D. in finance, you will not get that tenured teaching job. 

Additionally, large financial institutions like to hire PHDs from elite business schools rather than ones from lower-ranking colleges. The finance industry is snobby.  

I also have read about Ph.D. in finance who went into marketing analytics instead and excelled there as a marketing analyst.  

Conclusion about MBA vs. Ph.D. in finance

Do not go into Ph.D. if you want it for a career or job because a Ph.D. is essentially a teaching and research degree. 

Overall, Ph.D. in finance will not yield a much higher salary than MBA from a reputable business school. However, ph.D. in finance may bring substantial career benefits if it is from one of the elite business schools.

On the other hand, a ph.D. in finance from a low-ranking business school may not even result in a suitable teaching position.

A ph.D. in finance is worth only if you plan to work in academia and be an academic researcher in the field of finance. Still, there are possibilities for switching to private industry jobs for Ph.D. in finance.

But long and tedious Ph.D. process may not be worth the hustle just for getting a career in the finance industry.

MBA with a concentration in finance is easier to obtain in the top 50 MBA program and generally is a significantly faster process. Then in two years, you can start looking for a job. 

Financial institutions also like to hire people with MBAs or MS in finance. Because of that, I think MS in finance is a much easier route to break into the financial industry than Ph.D. in finance. Plus, financial institutions like to hire advanced math or statistics majors rather than Ph.D. in finance. 

Go for MS in finance or MBA from a top business school. But, frankly, Ph.D. in math or economics may be an even better route to break into the world of finance than Ph.D. in finance. 

MBA vs. Ph.D. in economics (with salary comparison)

When deciding on MBA vs. Ph.D. in economics, we must remember that Ph.D. in economics is as much a teaching research degree as any other Ph.D.

I like economics because it studies society and consumer behavior as much as complex numbers. Economics degree is number 2 among people with degrees who got rich (number 1 is engineering). 

I guess this success has to do with economists studying and forecasting industry and economic trends. As a result, they develop an astute understanding of where things are heading in the economy. 

The accurate average starting salary for Ph.D. in economics is probably also around $70,000-$90,000. However, PhDs from elite universities are yielding higher wages between $100,000 and $200,000. 

Ph.D. in economics is a more popular degree than Ph.D. in finance but suffers from the same limitations. Ph.D. in economics is essentially an academic research and teaching degree. 

Getting a Ph.D. in economics is as challenging as getting a Ph.D. in finance and maybe even harder, according to Ph.D. graduates. It is a highly rigorous program with all math and calculations and lots of personal sacrifices.

Minus, pay is low while you pursue it for 5-6 years. After graduation, you must have published papers, or you will lose the possibility to land a suitable teaching position. 

PhD vs MBA For Jobs in Private Industry

Among the advantages of a Ph.D. in economics vs. MBA is that Ph.D. in economics is a heavily quantitative degree and good quants are always in demand in the business industry.

Ph.D. in economics studies much deeper theoretical and practical application economics to the real-life business world than MBA. And Ph.D. in economics knows advanced math very well. 

A ph.D. in economics may open some private business industry research and analysis positions. Still, the salary level is not likely to be higher than the one obtained by MBA graduates from one of the 50 top-ranking MBA programs in the country. 

Therefore, I think MBA from a top 50 business school is a better practical career choice than Ph.D. in economics. 

My take Ph.D. in economics is worth it only if you are not just a fan but a fanatic of economics and would love to teach and research it day and night and on Sunday.

Otherwise, MBA with a concentration in economics may be a better choice for a quicker career start. Alternatively, you may obtain MS in applied business economics or MS in finance. 

I said that Ph.D. in economics is generally a more popular business Ph.D. choice because it looks like such PhDs can find industry jobs more quickly than Ph.D. in finance.  

One good news is that PhDs in economics have one of the lowest unemployment rates among all types of PhDs. So, at least, Ph.D. in economics is very likely to obtain a job.  

However, pay may not be necessarily better than that of MBA or MS in Finance, MS in applied economics, or MS in Math or statistics. 

And Ph.D. in math or technology is still the best for a three-figure salary. Keep in mind that all quantitative PhDs often compete for the same quantitative or analytical jobs in the business industry.

Conclusion: Better Ph.D. in business or MBA?

41% of MBAs are underemployed, and almost 90% of MBAs report working in positions not related to their MBA. I also went into the legal field despite having top As in my finance and economics classes. 

Other reputable reports suggest that MBAs are employable mostly when they already have 5-6 years of relevant work experience. Thus, MBA serves just as a career booster, not a career starter, unless MBA is from an elite business school. 

On the other hand, a Ph.D. takes 3-7 or even ten years to complete while underpaying. And even upon graduation, often PhDs salaries are not much higher than those of MBAs. In fact, on average, no more than 20% higher. 

The majority of Ph.D. business jobs are in teaching or consulting. Therefore, a Ph.D. will make you overqualified for most entry-level positions. Even MBA can make you overqualified for many jobs. 

Is a Ph.D. worth it? Is it worth spending 5-7 years of hard Ph.D. research work just on getting paid a little more than MBA after two years of master’s degree? You tell me. 

It is a bad idea to obtain Ph.D. just for a job and career. But the following are exceptions. First, Ph.D. is great if you love doing research, writing research papers on the super-favorite topics so much that you can consistently keep working on your Ph.D. for so many years without quitting. 

And, if the topic of your Ph.D. is in some field with challenging practical applications, like quantitative or Tech, you may even enjoy a great paying career after obtaining a Ph.D. 

People with solid quantitative skills will always find analytical jobs in the business. The salary Ph.D. in the quantitative discipline may initially not be much better than that of a regular MBA.

Still, the long-term job security and career growth may be as good because Ph.D. is a specialist with quantitative skills like nobody else in the job market. 

Overall, I think that Ph.D. is not better than MBA in Ph.D. vs. MBA debate. Instead, I believe MBA is better than Ph.D. because it takes less time and effort to complete.

In addition, MBA is a significantly better choice if you can practice GMAT and get into MBA at one of the higher-ranking business schools. 

But PhDs in Tech or quantitative disciplines may be well worth the long marathon for those who genuinely enjoy doing that type of work. 

This article’s information and opinions represent only my opinion based on some data, some research, and work experience. In no way is this education or career advice.

Said that, hopefully, you now have a little more information to work with when deciding about MBA vs. Ph.D. paths, their flaws, and benefits.  

Source 1 , Source 2 , Source 3 , Source 4 , Source 5 , Source 6 , Source 7 , Source 8 , Source 9

PhD in Management vs MBA: Choosing the Best Path for Career and Academic Success

Blog summary:, critical benefits of pursuing a phd in management.

• PhD in Management vs. MBA: What's the Difference?

Advance Your Career with a PhD in Management

Key considerations when selecting a phd program, why enroll in top phd programs online.

• MBA vs. PhD in Management: What's the Difference?

Benefits of Accredited Online PhD Programs

How to succeed in your phd in management journey, conclusion: investing in your future with a phd in management.

Earning a PhD in Management can open the door to prestigious academic and leadership positions. This guide explores the key benefits of pursuing this advanced degree, offers tips on selecting the right program, and highlights the advantages of enrolling in online PhD programs.

What is a PhD in Management?

A PhD in Management is the highest academic qualification in business and Management. It allows students to delve deep into specialized areas like strategy, finance, marketing, organizational behaviour, and operations management. PhD programs focus on research, teaching, and leadership development, making graduates well-equipped for top academic and executive roles.

The program involves extensive research, advanced theoretical study, and contributions to the body of knowledge in Management, preparing individuals for influential roles in academia and industry.

• Research Expertise: Develops deep analytical and research skills.
• Career Advancement: Opens doors to top leadership roles in academia and business.
• Thought Leadership: Establishes you as an expert in your field, contributing to innovation and knowledge.
• Flexibility for Online Learners: Accredited online PhD programs provide the flexibility needed for working professionals.

PhD in Management vs. MBA: What’s the Difference?

While a Master of Business Administration (MBA) focuses on practical business skills and leadership, a PhD in Management emphasizes research and theoretical understanding. Both degrees are highly regarded, but the choice depends on your career goals:

• PhD in Management: Ideal for those interested in research, academia, or leadership roles in policy-making.
• MBA: Suited for those looking to enhance practical business skills and leadership roles in the corporate world.

Why Opt for a PhD in Management?

A PhD in Management is the ultimate qualification for those interested in advanced leadership, research, and academic roles. Here’s why it’s considered one of the most prestigious business degrees:

• Research and Innovation: Focuses on cutting-edge research that influences the future of business.
• Thought Leadership: Graduates often hold positions in top universities or become policy advisors.
• Career Versatility: Opportunities span academia, research institutions, consulting, and executive leadership.

“Research in management drives innovation and fosters progress in business and leadership.” —Peter Drucker, Management Consultant and Author

Choosing the Right PhD Program After Your MBA

After completing an MBA, enrolling in a PhD in Management is a natural progression for individuals interested in deep research and scholarly work. With technological advancements, many universities now offer top PhD programs online , allowing working professionals to pursue their academic goals without disrupting their careers.

• Accreditation: Make sure the program is accredited to guarantee global recognition of your degree.
• Research Opportunities: Look for the programs that align with your research interests.
• Flexibility: Online PhD programs offer the flexibility to balance work, life, and study.
• Faculty: Opt for a program with experienced faculty actively engaged in research.
• Career Support: Choose programs that offer networking, publishing opportunities, and research grants.

In Today’s digital world, education has evolved to accommodate the needs of professionals seeking higher education while balancing work commitments. Here’s why choosing one of the top online PhD programs can be advantageous:

• Flexibility: Manage your studies while continuing to work.
• Global Reach: Enroll in prestigious programs from anywhere in the world.
• Cost-effective: Online PhD programs can be more affordable without compromising quality.

“The future of education is online, and flexibility is key to balancing career growth with learning.” —Sheryl Sandberg, COO of Facebook and Author of Lean In

MBA vs. PhD in Management: What’s the Difference?

Many professionals wonder whether to pursue an MBA or a PhD in Management. The answer depends on your career aspirations:

• MBA: Best for those looking to build practical leadership skills in business.
• PhD in Management: This program is suited for those pursuing academic or high-level research roles.

Accredited Online PhD Programs: A Growing Trend

When selecting a PhD program, choosing an accredited online PhD program is essential. Accreditation ensures the program meets rigorous academic standards and your degree is respected globally.

• Global Recognition: Employers and academic institutions respect accredited degrees.
• High Standards: Accredited programs adhere to strict academic criteria.
• Career Opportunities: A PhD opens doors to business, academia, and research leadership roles.

“Success in business research isn’t just about knowing—it’s about innovating.” —Warren Buffett, Investor and CEO of Berkshire Hathaway

Success in a PhD degree in Management comes from dedication, research, and a commitment to continual learning. Here are some tips for a successful academic journey:

• Stay Current: Stay informed about emerging trends in Management and business.
• Network: Build connections with scholars and industry professionals.
• Publish Your Work: Share your research through academic journals and conferences.

A PhD in Management sets you apart as an expert in your field, opening doors to advanced leadership, academic, and research opportunities. Whether you choose a traditional program or explore online PhD programs , investing in this degree is one of the most rewarding decisions you can make for your career.

• A PhD in Management focuses on research, leadership, and academic opportunities.
• The best online PhD programs offer flexibility, cost-effectiveness, and career advancement opportunities.
• Always choose accredited online PhD programs for global recognition of your degree.

“ The future of business education is research-driven, and accreditation ensures quality and innovation.” —Clayton Christensen, Harvard Business Professor and Innovation Expert

Join an accredited Online PhD Program and unlock new opportunities

PhDs specializing in Strategy, Organizational Behavior, and Data Analytics are particularly in demand as they prepare graduates for leadership roles in academic and industry.

PhD graduates in Finance, Strategy, and Organizational Leadership tend to earn the highest salaries and often secure high-level academic or executive positions.

Top universities for PhD in Management programs include Texila American University, Harvard Business School, Stanford Graduate School of Business, INSEAD, and Wharton School of the University of Pennsylvania.

An MBA focuses on practical leadership skills, while a PhD in Management is research-oriented and prepares graduates for academic and leadership roles.

Top specializations include Strategy, Organizational Behavior, Finance, and Data Analytics, which offer excellent career prospects in academia and business leadership.

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No matter which degree path you take, continuing your education at a higher institution is always an honorable goal. For most people, it’s easy to decide to move ahead to the level of a bachelor’s degree, and then from there, it’s a simple stretch to a master’s. But once you have your MBA, should you stop or continue on to your doctoral degree? There’s where most of us have our debate.

Obtaining your MBA is hard enough, but a PhD requires intensive concentration on a focus area that, for at least two years and sometimes longer, encompasses your entire life. PhD graduates receive an education in which the knowledge they gain is used to make an impact in innovative ways on the world. There are some advantages to both the MBA and the PhD that make them both good choices, depending on what you want in your career.

What Does an MBA Do

The MBA is one of the most popular graduate program degrees. Each program offers a different skill set, but all of them are business-related. There are educational paths offered in areas like statistics, finance, accounting, economics, leadership, ethics, management, and entrepreneurship, among many others.

By obtaining your MBA, you’ll be valuable to industries around the world because you’ll learn your hard skills, but you’ll also have experience with soft skills to make you a better “people person.” Through courses designed to develop leadership, analytics, and critical thinking, you’ll be able to handle teamwork, individual work, and communication in your field of study.

What Does a PhD Get You?

The concept of a Doctor of Philosophy might not sound like what you want to do with a field completely unrelated to that, but it’s actually a professional degree that designates you as a specialist in the field of your choice. Moving away from today’s idea of philosophy, the word originated from the Greek word philosophia , which means “a love of wisdom.” When you are passionate about a chosen subject and love to find the wisdom in it, you can aim for a PhD.

With a PhD, you can teach at any level or obtain work in a specialized position.

The PhD is a postgraduate academic degree that you obtain when you take the required courses and submit a thesis or dissertation on an original topic that shows you’re qualified to be considered an expert on the field. It’s the highest degree you can achieve, in general.

Debating the Pros and Cons of Each

A PhD isn’t for everyone, but if you decide it’s what you want to do, it’s a very impressive goal! Many older learners are returning to school for their PhD today because it’s now the sought-after degree in businesses around the world. They want to advance their career paths, and an MBA isn’t cutting it.

With so many online courses available now, it’s easier than ever to return to school for your PhD. But why would you want to? There are advantages and disadvantage to both, such as:

●      You can obtain many jobs in your chosen career field with an MBA, so it allows you to get started earlier and begin making money sooner, with less student debt.

●      An MBA makes you more valuable in industries because it’s a specialized business degree.

●      An MBA gives you more opportunities to progress further in your field of choice and increases your earning potential.

●      A PhD, however, gives you access to jobs in the research or academic world.

●      The average PhD holder makes significantly more annually than an MBA holder.

●      Obtaining a PhD young gives you an increased return on your investment.

●      MBAs are becoming commonplace, while PhDs are in demand in every industry around the world.

If you want to ensure that you’re held as valuable in your career and have as many doors open as possible, the PhD is the way to go. However, if you are solely interested in business and want to live comfortably without the excess stress of continuing education, the MBA serves your purpose.

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Impactio is an all-in-one software solution designed for and used by expert scholars everywhere. The tools you need to create professional PDF documents and web-based publications are at your fingertips, so you can further your education or continue exploring your research!

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MBA vs PhD in Business

Key Takeaways

• An MBA is well-suited for students who are interested in practical work experience, while PhD candidates focus on those interested in research primarily.
• If you thrive in practical business settings, seek rapid career advancement, and value hands-on experience, pursuing an MBA degree may be a good choice.
• iI you’re passionate about research, academic pursuits, specialized expertise, and making scholarly contributions, pursuing a PhD in business may align better with your goals.

Students often face the dilemma of whether to pursue a PhD or an MBA. Each program offers unique benefits and challenges. In this article, we explore the similarities and differences between an MBA vs PhD in Business, and share a comprehensive overview to help you make your decision with ease.

Featured Programs

Mba vs. phd in business: a general overview, what is an mba.

Master of Business Administration (MBA) is an advanced degree in business administration available to students at the graduate level. Earning an MBA gives you a solid grounding in all things relevant to business.

Most people who pursue an MBA do so to prepare themselves for leadership roles. Individuals holding an MBA can have any of the following designations:

• Vice President of Finance
• Accounting Manager
• Product Manager
• Chief Financial Officer
• Human Resources Manager
• Financial Analyst
• Policy Analyst

What is A PhD?

PhD is the highest level of academic achievement recognized. It is a research degree at the doctorate level and can be earned in many fields, including business. The Doctor of Business Administration ( DBA )  is one of the most popular options among those seeking the highest degree in business.

Most people who get a doctorate in business do it because they are really interested in teaching at a university or because they want to study a particular subject in depth. Designations held by individuals holding a doctorate in business include:

• Financial manager
• Management analyst
• Chief executive officer
• Sales manager
• Market research analyst

Comparing MBA and PhD in Business

Many students face the challenge of choosing between an MBA or a PhD in business. Wondering which of these programs would be the right fit for you? Comparing these programs can help you get the answer you’re looking for.

Similarities

Competitive admissions.

Admission to MBA  and PhD programs can be highly competitive due to factors like limited funding, a high number of applicants, and limited available slots. This competitiveness underscores the importance of presenting a strong application that highlights academic achievements, relevant experience, and MBA career aspirations .

Enrollment Requirements

Candidates typically need a bachelor’s degree to apply for MBA programs, although a background in business can bolster their application. PhD programs also typically require a bachelor’s or master’s degree in the relevant field.

This prerequisite makes sure that applicants have a foundational understanding of academic principles and are prepared for graduate-level coursework.

Standardized Tests

Prerequisites for MBA programs often include standardized tests such as the Graduate Management Admission Test (GMAT)  or the Graduate Record Examinations (GRE). Similarly, some PhD programs may require candidates to  take the GRE  too.

These tests assess skills in areas like analytical writing, quantitative reasoning, and verbal reasoning, helping admissions committees evaluate applicants’ readiness for advanced academic studies.

Differences

Work experience.

MBA programs often value applicants with relevant work experience, especially for executive or part-time MBA programs. Professional experience can enhance classroom discussions, bring real-world perspectives to coursework, and contribute to a diverse learning environment.

In contrast, while work experience can be beneficial for PhD applicants, it is generally not a mandatory requirement for admission.

Curriculum Focus

The subjects covered in an MBA program compared to a PhD program are what sets them apart. MBA programs typically provide a comprehensive understanding of business practices, including finance, marketing, operations, and strategy. The curriculum emphasizes practical skills, leadership development, and decision-making in business contexts.

In contrast, PhD programs prioritize research skills, critical thinking, and academic contributions to a specific field of study. Doctoral students dive deep into a chosen area of research, conducting original investigations and contributing new knowledge to their discipline.

For instance, one student might choose to learn about marketing and how it works for small businesses. Instead of trying to be an expert on a bunch of different things, you will focus on one specific area of business and learn about its ins and outs.

Degree Duration

The time commitment required to complete an MBA degree  can vary from one institution to another. While there are MBA programs that can be completed in 1-year , two years is the typical duration of a full-time MBA program . If students enroll full-time in an accelerated MBA program , they can finish the degree in eleven to sixteen months.

It could take three to six years to finish a part-time MBA degree. Part-time executive MBA programs typically have a duration of eighteen and twenty-four months.

Generally, it takes students four to six years to finish a PhD program. However, for some, it can take as long as eight years. The duration of the program might differ greatly from one student to another and from one curriculum design to another.

Distinguishing Factors

Besides the differences mentioned above, there are some major distinguishing factors between an MBA and a PhD in business. Going through them will further help you evaluate the right choice for yourself.

Networking Opportunities

MBA programs offer a diverse and dynamic networking environment, bringing together professionals from various industries and backgrounds. Students in MBA programs can leverage these networking opportunities to build professional connections, exchange ideas, and access career development resources.

On the other hand, a doctorate in business offers very few opportunities for peer coordination, as the focus is primarily on individual research and scholarly pursuits.

Research vs. Practical Experience

A fundamental distinction between MBA and PhD programs is their emphasis on research versus practical experience. Completing a thesis is a necessary requirement for graduation for most master’s degree programs. While some MBA programs emphasize theoretical understanding and research, others prioritize practical experience.

In contrast, doctoral students undergo rigorous testing to demonstrate their expertise. These tests include candidacy and comprehensive exams. Additionally, a dissertation, a detailed exploration and analysis of a specific subject or research area, is mandatory for earning a PhD.

Doctoral candidates carefully select a thesis topic, conduct extensive research, and present their findings. The culmination of their doctoral journey involves defending their dissertation before an advisory committee, showcasing their mastery of the subject and research skills.

Learning Styles

Choosing between an MBA and a PhD in business involves understanding their distinct structures and learning styles. MBA programs follow a structured path with core courses and specialized tracks, emphasizing practical projects and teamwork in business.

On the other hand, PhD programs offer a more individualistic journey, focusing on research and personal exploration within the field.

Both attract students from diverse backgrounds, with MBA programs often catering to working professionals through flexible schedules.

When can an MBA in business be useful?

So far you’ve learned that even though they serve similar objectives, MBA and PhD are different. Below is a list of plausible ways an MBA can be useful:

• Career Advancement: An MBA benefits professionals seeking rapid career progression within corporate environments. It equips them with a comprehensive understanding of various business domains, leadership skills, and strategic decision-making capabilities.
• Leadership Roles:  An MBA can benefit individuals aiming for leadership positions such as Vice President of Finance, Chief Financial Officer, or Human Resources Manager. The program hones their managerial and organizational skills, preparing them to lead teams and drive business growth.
• Industry Transition:  MBA programs often attract professionals looking to transition into new industries or roles. The diverse curriculum and networking opportunities MBA programs offer facilitate this transition by providing insights into different sectors and fostering connections with industry experts.
• Entrepreneurship:  Many MBA graduates venture into entrepreneurship , leveraging their business acumen and acquired skills to start and manage their own businesses. The program provides valuable knowledge in areas like marketing, finance, and operations, which are important for entrepreneurial success.
• Global Opportunities:  With globalization shaping modern business landscapes, an MBA focusing on international business can be particularly useful for professionals seeking global career opportunities. It equips them with cross-cultural management skills and an understanding of international trade dynamics.

When can a PhD in business be useful?

A Ph.D. in business is a prestigious and advanced degree that opens doors to a wide range of impactful career paths. Beyond its academic significance, this degree equips individuals with many other skills, making them invaluable assets in various professional domains.

Let’s see where a PhD in Business can be particularly useful.

• Academic Careers:  One of the primary paths for PhD graduates in business is academia. They can pursue careers as professors or researchers in universities, contributing to developing knowledge in their field and mentoring future business leaders.
• Research Excellence: PhD programs emphasize rigorous research methodologies and critical thinking. Individuals interested in conducting in-depth research on specific business topics, publishing scholarly articles, and advancing the theoretical foundations of business disciplines find PhD programs highly rewarding.
• Specialized Roles:  Some specialized business roles, such as Chief Economist, require a deep understanding of economic theories and their practical applications. A PhD in business focusing on economics or related fields can be instrumental in securing such positions.
• Consulting and Advisory Roles:  PhD holders in business often excel in consulting and advisory roles, offering strategic insights, data-driven recommendations, and innovative solutions to businesses and organizations.
• Leadership in Research Institutions:  PhD graduates can lead research institutions , think tanks, or policy development organizations. Their expertise and research acumen contribute to evidence-based decision-making and the advancement of industry practices.

Which is better — An MBA or a PhD in business?

The decision between an MBA and a PhD in business ultimately depends on your career aspirations, interests, and desired impact. If you thrive in practical business settings, seek rapid career advancement, and value hands-on experience, an MBA may be better suited.

On the other hand, if you’re passionate about research, academic pursuits, specialized expertise, and making scholarly contributions, a PhD in business may align better with your goals. It’s important to evaluate your priorities, long-term objectives, and preferred learning and work environments when making this decision.

3 Tips for Choosing Between an MBA and a PhD

Making the choice between the two programs is going to be a tough decision and you’ll need to get all the help you can. So, we’re sharing some tips that can help you assess your priorities, interests, and career trajectory.

Consider these tips when you’re trying to figure out if earning a doctorate will benefit you more or an MBA.

Consult a Professional Guidance Counselor

Consult a career advisor  if you are confused about which degree will serve your goals best. They are a great resource for learning about the typical qualifications for your dream job.

You can learn about the requirements of different MBA and PhD programs and assess whether they are a good fit for you.

You can find independent career counselors or take advantage of the free services offered by career guidance counselors at educational institutions.

Find out Each Program’s Commitments

Consider the time and money needed for each program to make sure the one you choose is a beneficial investment for you in the long run. One way to do this is by weighing the time and money spent on the program against the potential gain in income.

Consider Your Preferred Learning Style

Consider your learning style before committing to a degree program since some may place a greater emphasis on certain approaches than others.

Courses that primarily include group work are common in graduate degree programs. In a PhD program, you can be expected to devote the majority of your time to extensive solo research.

Related Questions

Is acquiring a phd beneficial.

A doctorate in business shows that you are very knowledgeable and skilled in your field. It opens doors to rewarding professions in the public and private sectors, such as consulting, investment banking, and others.

Which MBA is most difficult?

One of the most challenging MBA specializations is operations management.

Is earning a PhD stressful?

Managing a personal life and academics and developing new research can be challenging. Generally, PhD students are known to experience stress and mental health problems along the way.

A study on PhD failure rate concludes that 19.5% of PhD candidates do not pass their final exam, and 16.2% drop out of the program before completion. However, overall 85% of PhD applicants are able to finish the program and earn their degree.

If you thrive on competition and practical challenges, an MBA might be the right choice for you. Alternatively, if you enjoy exploring theoretical frameworks, intellectual growth, and mentorship, a PhD could be ideal. If you’re someone who enjoys both aspects, you could consider going for a dual PhD.