A Bachelor of Business Administration (BBA) is a fantastic degree for people seeking foundational skills and knowledge about business. BBA grads receive a practical education in core areas such as accounting, finance, and marketing while cultivating skills in critical thinking, teamwork, leadership, and communication. The degree provides flexibility for graduates to become employed in different sectors and in different functions within those sectors. So, does someone with a BBA even need an MBA later down the road? The question isn’t whether a BBA is sufficient but whether it prepares you for the level of judgment, leadership, and scale demanded later in your career.
Here are five reasons to pursue an MBA even if you have an undergraduate business degree:
1. Develop Strategic Judgment
Strategic judgment is the ability to make high-stakes decisions amid uncertainty by weighing incomplete data, competing priorities, and long-term consequences across the entire organization. The BBA teaches the basic concepts (i.e., what finance is or what marketing does) and focuses much more on theory. Undergraduate students generally will not have real-world work experience, and so they have not applied these concepts in a deep or practical manner. Conversely, the MBA synthesizes the concepts into a higher-level line of thinking, allowing the student to make decisions despite ambiguity—when not only is the decision unclear but so is the data upon which the decision will be made.
Furthermore, the BBA is more siloed in terms of learning about different business functions, whereas the MBA provides the student with the necessary cross-functional knowledge needed to be strategic on an enterprise level. Since most MBA students have real-world career experience, the material is presented in a manner to be applied practically—not just steeped in theory that can’t always map directly to current business issues and trends.
2. Cultivate Executive Leadership Skills
While the BBA does introduce and teach leadership skills, undergraduate programs often do not provide feedback on students’ leadership styles or give students authority over their peers. Furthermore, the leadership concepts that the BBA presents are more theoretical without the practical application.
On the other hand, the MBA fosters leadership development by setting the stage for team conflict and differing power dynamics. Case studies, organizational behavior courses, club leadership, and experiential learning opportunities working on live cases with real companies all provide students with real-world exposure to leadership at a higher, strategic level. Moreover, business schools have executive coaching resources where students can get feedback on their leadership styles and cultivate skills for executive-level decision-making and interactions. With an MBA, you would learn better communication skills and develop an aptitude in people management. This prepares students for post-graduate positions beyond simply being capable from a technical standpoint; an MBA program also creates leadership-ready graduates.
3. Be Prepared to Pivot Quickly and Effectively
The BBA provides students with the skills to land an entry-level position in a given discipline. This is a great foundation to move up within that silo. But if one is interested in moving to a new function and/or industry (e.g., from marketing to finance or from operations to consulting), doing so will usually require a new set of skills. That’s not to say that it is not possible to pivot with just a BBA, but it will usually take much longer—requiring several lateral hops or even pay cuts to move to a lower level in a new vertical.
That’s where the MBA comes in, as it refreshes your skill set, resets your perceived career ceiling, and rebrands you from a competent staffer to an enterprise thinker. Between the coursework and internship, the MBA signals to employers that you are prepared to move into a higher position even in the context of a complete change in career trajectory. In fact, according to a 2022 study by the Graduate Management Admission Council (GMAC) , “50–-60% of GME [graduate management education] graduates changed job functions or industries after obtaining their degrees.” Additionally, during an economic downturn, the MBA provides a rounded, cross-functional foundation that allows you to reenter the market after stagnation or layoffs.
4. Enhance and Grow Your Network
The idea of using an MBA to facilitate networking has become cliché, but for a good reason: MBA graduates often collaborate with their classmates and the larger alumni network for entrepreneurial efforts, job searches, or even innovating within a corporate context. This is not simply about meeting and schmoozing people during happy hour, and it’s not just about expanding your network, as you could accomplish those with the BBA network you have already created.
After earning an MBA, you will have worked with classmates who have much more experience in their careers and are much more diverse in terms of industry, function, geography, and culture. This engagement allows you to learn from your classmates in ways that were not possible during your undergrad studies, and you can use that experience to identify how to utilize your network to help achieve your goals. You will also have much more direct access to industry leaders who routinely visit campus, further expanding your network. While the BBA network is often more social and focused on early-career peers, the MBA network is typically more strategic and enduring—setting you up for the rest of your career.
5. Improve your ROI
There is no denying that an MBA is a significant investment, which can feel like a barrier to entry for some—especially if you already have a BBA. However, consider this: the MBA is not just about your first job after graduation (like the BBA can be) but rather what your long-term trajectory is—what the degree will enable you to do ten to 20 years from now. The MBA raises your long-term earnings ceiling, shortens the time it takes to attain senior roles, and increases your mobility options as you develop your career path.
For example, the aforementioned 2022 GMAC study found that 87% of respondents believed that GME increased their employability. In addition, a 2024 study by the U.S. Bureau of Labor Statistics shows that median salaries for master’s graduates are 19% higher than the median salaries for workers with only a bachelor’s degree, with a 12% decrease in unemployment. Lastly, the GMAC 2025 Corporate Recruiters Survey estimated that the median salary for MBA graduates in 2025 would be $125K, compared to the estimated median salary of $75K for those with bachelor’s degrees. And given that the MBA provides more upward mobility, the degree offers the opportunity for even higher ROI in the future.
So, as you consider whether you need to add to your already-valuable BBA, think about the pros and cons beyond the cost of the MBA. Do you have the cross-functional, strategic skills to reach your goals, or do you require more skills? You may find that the benefits far outweigh the costs.
If you would like help developing a plan for your MBA journey, sign up for a free 30-minute consultation with a Stratus admissions expert today!
