Seven Worries That Get in the Way of B-School

# 1: B-School will require me to spend more money than I have, especially in an uncertain economy.

Reality: Any investment made in furthering your education is a down payment on your future. A survey of b-school students conducted by GMAC in 2010 showed that those holding a job offer at graduation expected their annual base salaries to rise considerably over their pre-degree earnings, anywhere from 43% for graduates of EMBA programs to 64% for full-time two-year MBA grads.

As further proof of the value of an MBA, GMAC recently reported that employed alumnae from the Class of 2010 were earning, on average, a median salary of US$78,820 on their first job after graduation. 

A 2006 study conducted by GMAC is just as relevant today as when it was published. It shows the total return on investment in graduate business school “over 10 years, is 177 percent, or nearly 18 percent on an annual basis.” This research also showed that the overall payback period for grad school expenses was between four and five years on average for full-time programs and only two to three years, on average, for part-time and executive MBA programs. These ROI figures are based on increased future earnings potential of those who earn an MBA.

Business school is not a direct ticket to the job of your dreams, but it will likely serve as a buffer in a down economy. Nearly nine in 10 (88%) 2010 grads who participated in GMAC’s Alumni Perspectives survey in September had a job upon graduation. Moreover, three-quarters of the 2010 class indicated their graduate business degree was essential for obtaining their first post-graduation job.

# 2: I’m worried about my GMAT® score.

Reality: Most business schools consider each applicant’s entire application, not just the GMAT score. If you’re not satisfied with your score, do some additional studying and sit for the exam again. Many schools will view this effort as your commitment to earning a business degree.

Uber-Reality: According to the GMAC Profile of GMAT Candidates 2009-10, for the test year ending in 2010, women younger than 20 had the highest mean total GMAT score—606 points—of any other age group of either gender and were the first group to break a mean score of 600 of any age group or gender in the past five years. Between 2005 and 2010, women test takers younger than 20 have raised their mean total score by 53 points compared to only four points for men; women 20 to 21 years of age have raised their total mean score by 43 points over the past five years compared to 19 points for men.

# 3: My Undergraduate record is weak.

Reality: Most schools gauge your academic skills by looking at your GMAT score and your previous academic record, including grade point average (GPA). If one is weak, the other needs to be exceptional enough to compensate. Be prepared to explain if you think your undergraduate record does not accurately reflect your academic ability.

# 4: B-school demands on my time or energy will be too great.

Reality: There is no doubt about it. Business school will definitely cut into your personal time. That’s why it’s critical to study at the right pace for your lifestyle. An intense, one-year program will affect your personal life differently than a part-time, weekend, or evening program will. The good news is that over the long term, alumnae are happy they went to business school. GMAC’s 2010 Alumni Perspectives Survey found that 97% of women feel their degree is an outstanding, excellent, or good value.

# 5: I’m unsure of my future career plans.

Reality: In many ways, it doesn’t matter. Business school is a springboard to a wide variety of careers, and the skills you’ll acquire are highly sought after by companies of all types and sizes, and applicable to almost any work you will do. In today’s knowledge-intense economy, employability will rest on a combination of your general management skills and specific technical skills and the more you can do to develop these skills the more career options you will have.

# 6: An MBA is best suited to those who want to work in a big company.

Reality: It’s true that many successful executives in large corporations are MBA graduates. But an MBA can help you to be successful in almost any organization—in a nonprofit, arts management, higher education, health care, or the military. Some people get MBAs so they can start their own businesses or manage a small family business. In fact, nearly 40% of Class of 2010 management graduates surveyed just prior to graduation said they planned to work in organizations with fewer than 1,000 employees.

#7: The b-school culture tends not to Be supportive of women.

Reality: There are big differences among schools, and some are better than others at attracting and supporting women on campus. All businesses are not the same, and neither are all business schools. Many offer a wide variety of program options to attract as broad and diverse a pool of candidates as possible. In its 2010 report on application trends, GMAC found that worldwide,  at least half (46%) of business programs of all types engaged in special outreach efforts to recruit more women. Talk to school representatives, current students, and alumnae to see if the school that interests you offers the culture and kind of experiences you want.

And one more consideration.

The number of women taking the GMAT is growing. In Test Year 2009¬–2010, the number of tests taken by women reached its highest level in 10 years—105,900— representing more than 40% of the total prospective student pipeline. In 2010, the average annual growth rate for tests taken by women was 3.3% compared to 2.6% for male test-takers.