What Does MBA Stand For?

Perhaps you've seen "MBA" listed as a preferred or required job qualification. Or maybe leaders in your organization have those three letters listed beside their names in business communications.

But what do they mean? And what is an MBA degree, exactly?

MBA stands for Master of Business Administration. It's a master's degree that offers a broad-based business education designed to teach skills that can help you succeed in any business area, from economics and marketing to financial management and social responsibility.

What Does Having an MBA Mean for You?

If you’re considering why you should get an MBA, you’re likely wondering what kind of return on investment you can expect — and how soon you can get it.

There are many reasons why you might earn an MBA, including increased salary potential and personal achievement. However, Dr. Charlene Spann, an adjunct instructor of business at Southern New Hampshire University (SNHU), said the credential will be the most beneficial if you follow it up with ongoing growth in knowledge and skills.

"If one is seeking an MBA to truly understand the nuances of business so that their skills after graduation can expand and grow ... I believe it can future-proof a career," she said. "The key is that the person needs to continue developing their skills after the schoolwork is done."

In addition to having an MBA, Spann went on to earn a Doctor of Business Administration (DBA) as well as a Project Management Professional (PMP)® Certification.**

How long it takes to get an MBA depends on the program you choose and your preferred pacing. For example, at SNHU, you could start and finish your MBA online in just over one year if you take two classes per 10-week term.

That means you can add the three-letter credential to your name sooner.

Read more: Is an Online MBA Worth It?

What is the Average MBA Salary Potential?

While your income as an MBA degree holder can vary significantly based on the industry, position you work in and geographic location, data from the U.S. Bureau of Labor Statistics (BLS) shows that employees with a master’s degree earned a median income of $1,840 per week in 2024.* That's 19% more than those with only a bachelor’s degree, according to BLS.*

Still, with so many advanced business degree options out there, you may be wondering, “Why get an MBA?”

Data from the Graduate Management Admission Council (GMAC) indicates a greater starting pay with an MBA degree.* Its 2025 Corporate Recruiters Survey revealed that the annual median starting salary is $125,000 for U.S. MBA hires, compared to around $75,000 for those with just a bachelor's degree (GMAC PDF source).*

Achieving the advanced credential could also increase your job security. In 2023, workers with a master’s degree faced an unemployment rate of 2.2%, compared to 2.5% for workers with only a bachelor's degree and 4.2% with only a high school diploma, according to BLS data.*

MBAs are in demand across a range of industries and organizations.* According to the GMAC report, more than a third of global recruiters plan to hire more MBA graduates in 2025 than in the year before.

Types of MBA Programs

While broad-ranging business knowledge is one of the key values of an MBA, if you know you want to enter a particular area of business, choosing from more than 15 types of MBA concentrations could add even more value to your business degree.

"I would encourage students to have a concentration," said Doug Blais, PhD, a director of graduate campus programs at SNHU. "This allows students to have an increased focus on specific areas of interest and (can) make them more marketable to an employer."

From information technology management, public administration and leadership to international business, engineering management and finance, MBA concentrations are a great way to strengthen the skills most relevant to you. They are designed to help you gain the fundamental business understanding you need to be flexible and think strategically in today’s ever-changing economy.

Some other types of MBA concentrations include:

• Accounting
• Entrepreneurship
• Healthcare Management
• Human Resources
• Music Business

Selecting a concentration when earning your MBA can also provide valuable experience if you plan to use your degree to change careers.

Are you currently working in finance but want to move into a marketing career? An MBA with a concentration in Marketing can help give you the marketing know-how you need to stand out to employers and succeed in a new field.

Is an MBA Hard to Get?

An MBA is an advanced degree, so you can expect it to challenge you. But it should also feel possible to obtain.

"An MBA is meant to be rigorous and manageable at the same time," said Blais, whose career as an SNHU business educator has spanned three decades. He noted that the perceived difficulty often depends on how well you're able to manage your responsibilities in and out of the classroom.

The MBA program at SNHU, in particular, offers flexibility, according to Blais — and that finding a way to fit it into your schedule can be worth it in the long run.

"At SNHU, we offer real-world applications with a focus on technology, data analysis and the incorporation of artificial intelligence," he said.

All three focuses are connected to skills employers rated as "core" to their work, according to a 2025 World Economic Forum (WEF) report. This means you'll have an opportunity to develop in-demand knowledge — plus many soft skills that are honed along the way.

And in this age of AI, Blais contends MBA professionals are needed more than ever to lead with empathy and trust. In addition to developing leadership skills, he noted that MBA programs also explore cultural awareness and ethical and sustainable business practices.

So, is an MBA Really Worth It?

An MBA is the "gold standard" of business degrees, according to Blais. And the value of an MBA can be far-reaching: from potential career and salary growth to personal and professional development.

It can also prepare you for the future, equipping you with an industry-relevant credential and important skills. In today’s fast-paced, technology-driven economy, employers are seeking workers who can be flexible and learn and adapt on the fly.

Throughout your MBA program, you'll also have the opportunity to earn credentials beyond a diploma. At SNHU, "Strategy Development Implementation" and "Data Analytics Core Concepts" are just two examples of credentials embedded directly into MBA courses. There are also "core skill" credentials you can earn, such as "Leading vs. Managing" and "Building Personal Resilience."

These credentials include certificates sought throughout the business sector. More than half of surveyed employers identified the following as core skills for their workforce, according to the WEF report:

• Analytical thinking
• Resilience, flexibility and agility
• Leadership and social influence
• Creative thinking
• Motivation and self-awareness

In addition, you can gain experience with using common business platforms such as Microsoft Excel, Power BI and Tableau, to name a few.

The combination of learning various business scenarios, earning additional business credentials and using business technology and platforms helps prepare you for whatever your next step may be.

When Joi Taylor '21 decided to earn an MBA, she already had a bachelor's in business administration. And she already built a career in finance. But she wasn't done.

Taylor decided to go back to SNHU — her alma mater — to get her MBA with a concentration in Leadership.

"I've been working to finance for a while, but with this degree, I think that it ... has heightened my leadership skills and will make me a better leader and help me impact the lives of others," she said.

During the program, Taylor noted that she took several helpful courses — with "Leading Organizational Change" standing out as the most beneficial. She said she learned a lot about the different types of leadership, which she plans to apply to her career.

More than knowledge, Taylor said she gained confidence throughout her business administration programs. "I am just ready to face the world and use the skills and tools that I've learned and gained on this journey," she said.

*Cited job growth projections may not reflect local and/or short-term economic or job conditions and do not guarantee actual job growth. Actual salaries and/or earning potential may be the result of a combination of factors including, but not limited to: years of experience, industry of employment, geographic location, and worker skill.

**The Project Management Professional (PMP)^® is a registered mark of the Project Management Institute, Inc. The PMI^® Authorized Training Partner seal is a mark of the Project Management Institute, Inc.

Danielle Gagnon is a freelance writer focused on higher education. She started her career working as an education reporter for a daily newspaper in New Hampshire, where she reported on local schools and education policy. Gagnon served as the communications manager for a private school in Boston, MA before later starting her freelance writing career. Today, she continues to share her passion for education as a writer for Southern New Hampshire University. Connect with her on LinkedIn.