Founder and CEO of Haroun Education Ventures, Inc.
Once upon a time, an MBA degree, especially from a top university, was considered a golden ticket. The idea was simple: Invest the time and money in a prestigious graduate degree in business and doors would fly open to high-paying jobs and leadership roles in business, finance or technology.
But that’s no longer the case. Many top companies, including Google, Meta and IBM, don’t require a university degree at all anymore, let alone an MBA. The skills taught in traditional business programs are increasingly seen as outdated, and employers are shifting their focus to creativity, adaptability and real-world experience. That’s why I advise taking a hard look at whether an extremely expensive traditional two-year MBA from an accredited university is still worth the time and money.
The Declining Value Of A Degree
Let’s be honest: Many of the skills taught in business school aren’t as relevant as they once were. What’s missing? Essential skills like interviewing, selling, networking and managing personal finances. In the end, many MBA programs aren’t teaching students how to actually start and run a company, let alone how to make the most of the modern job market.
Then there’s the opportunity cost. Enrolling in a full-time MBA means years of lost wages and a tuition bill that easily tops $100,000 at the best schools. That’s a steep price for an education that isn’t keeping up with industry demands. According to reports, more than a dozen top-tier MBA programs are having their worst job placement outcomes in recent memory.
Even high-profile MBA holders themselves are skeptical. Sheryl Sandberg, former Meta COO and a Harvard MBA graduate, said she doesn’t believe an MBA is critical for working in tech. Guy Kawasaki, an Apple veteran with an MBA from UCLA, is even more blunt: “For every full-time engineer, add $500,000 [in company value]
. For every full-time MBA, subtract $250,000.”
Smarter Alternatives
If an MBA isn’t the best investment anymore, what are the alternatives? The good news is that technology has opened new paths to acquiring business knowledge, and many are far more practical and affordable.
AI-driven platforms can create personalized educational paths using materials from top universities like Stanford and MIT. Imagine asking AI to design a business strategy course that draws on curricula from the best professors in the world. These tools can recommend textbooks, online lectures and case studies even as they adapt to your pace and progress.
Want to supplement theory with hands-on experience? AI-driven platforms can also suggest real-world projects where you can apply business concepts to practical challenges. Combine this approach with free or low-cost learning platforms like Coursera, Udemy, Khan Academy and edX, and you’re well on the way to a world-class business education in a fraction of the time and without the debt.
Consider Liberal Arts
Jensen Huang, the founder of NVIDIA, recently said that students should not study computer science at university anymore because AI is a perfect tool to replace or augment the aforementioned role. Instead he recommends studying the liberal arts, as this helps students to think more creatively. In fact, Jensen said that he thinks that the US-based university system will pass the rest of the world’s university systems, because many US-based universities force students to study liberal arts and to not declare a major until at least their second year. Most countries do not embrace the Liberal Arts initial undergraduate university focus.
Steve Jobs famously credited Apple’s success to its position at the intersection of technology and the liberal arts. If higher education is still on your radar, a liberal arts degree might serve you better than a traditional business major. Creativity, critical thinking and problem-solving are always in high demand in the job market—and they’re exactly the skills that a broad, interdisciplinary education helps develop.
Online Courses And Certifications
Covid permanently changed how we learn. Remote education is now as much the norm as in-person studies, and top companies recognize industry certifications as valuable credentials. Platforms like Udemy and Pluralsight offer specialized training in topics ranging from writing and coding to finance and, of course, AI. Meanwhile, tech giants like Google and Microsoft provide certifications of their own that help demonstrate industry-relevant expertise.
Network, Network, Network
Many people attend traditional two-year MBA programs because they want to change careers. Before wasting money on an overpriced traditional MBA degree, however, try to network to change careers. Developing and drawing on your personal network will always be the most effective job-search strategy, and today, LinkedIn is the most powerful tool for making career connections. Unlike a static résumé, LinkedIn offers a dynamic way to showcase your expertise, build relationships and unearth new opportunities.
Here’s my advice: Use LinkedIn to set up at least 20 informational meetings with professionals at each company that you want to work for. Try to find some kind of personal connection, whether it’s attending the same school, living in the same city or having some kind of shared interest. Even if they’re not hiring, ask if they know someone who might be.
If you think that you won’t be able to get informational meetings, then consider this: imagine that it is 20 years in the future and a younger version of you that attended the same high school and is from the same hometown asked you for an informational meeting. Would you say yes to the meeting? Of course you would.
Before spending $100,000 on an MBA, set up 100 informational meetings. Then assume that each meeting saves you $1,000. After you set up these meetings, if you still cannot change careers or get a better job, then consider investing in a traditional MBA. Remember that in business, your network is your net worth and relationships are always more important than product knowledge.
A Smarter Path Forward
The MBA isn’t obsolete, but its value is shrinking. The modern job market prioritizes real-world experience and strong networks—none of which require a gold-plated business school diploma. So before you commit to an MBA program, ask yourself: Are you better off spending that time and money elsewhere? The answer may well be “yes.”
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