While an MBA degree equips you with industry relevant skills, enhances your capabilities and drives entrepreneur in you, the current economic environment, which is impeding your career growth, brings you yet another reason for pursuing this degree now.
Amidst the low economic sentiments and early signs of recession, employment opportunity is declining for freshers and growth index looms large for working executives at least for next 12-24 months. The slowing economy is further getting aggravated with falling stocks, depreciating rupee and volatile business environment, heightening your concern for career growth.
So, is the recession a good time for doing an MBA? Is it practical to spend lakh of Rupees on getting this degree now?
The global trend suggests that more number of freshers as well as working executives choose the time during tough economic environment to pursue an MBA. This also brings opportunities for them to get ready for a better career path as the economy recovers by the time they graduate from a B-school.
According to statistics released by the Graduate Management Admission Council (GMAC):
• In 2010, 88 percent of the MBA graduating class enjoyed full-time employment upon graduation.
• In 2011, the rate at which business school graduates found employment after getting their degree was 86 percent, similar to 2010.
It is important to note that the class of 2011 started their MBA studies in 2009 - the peak time of recession. The application process also increased in many B schools during that time.
The current economic scenario in India also does not present a good picture as compared to global economic environment of 2009. Thus, it may be right time for you to invest your capital and energy in an MBA programme which will add value to your professional qualification, enhance your capabilities and also enable you to excel in your career.
The growing interest for MBA amid this economic slowdown is evident in the surge in CAT 2013 registration which has reached to 1.4 lakh even as 20 more days are yet to go for the last date of registration. CAT 2013 Convener Rohit Kapoor believe that the two-year of business education makes one more capable and also prepares one to sail through in the tough economic environment. Going by the trend, CAT officials are confident that the number of applicants will cross last years' numbers and may even come close to the all-time high of 2.76 lakh.
So, what are the benefits of doing MBA during the slowing economy? We bring here insight on how an MBA degree for both freshers and working executives is beneficial during this tough economic environment.
For Engineering Students/Final year Students:
1. Low Placements in engineering, other streams: Recession takes a toll on all streams of education be it engineering, medical, law or any other stream. Hence, the best option for you is to join an MBA programme for 2 yrs and when you pass out in 2016, the job market would be quite favorable for you. Entering the job market after doing your MBA gives you an edge over other students as it brings you a dual tag.
2. Attractive payback: In comparison to any other degree, MBA is the most sought after because of its good RoI. The RoI (Return on Investment) signifies the time period by when your investment on your education is recovered. Investment here refers to the fee structure and other expenses during your programme.
Besides IIM which offer RoI of less than 2 years, there are many other B-schools whose payback period is either the same or even lesser in some cases. Such B-schools include FMS Delhi, JBIMS Mumbai, NITIE Mumbai, SPJIMR Mumbai, XLRI Jamshedpur, K J Somaiya Institute of Management Studies & Research, Mumbai, XIME Bhubaneswar, etc.
Registration process for CAT, XAT, NMAT, IIFT for the Batch 2014-16 is in the last leg and one must act fast to register themselves as it is a pre-requisite for admission to any B school in India. To know the application and exam dates of various MBA Entrance exams, click on MBAUniverse.com Exam Calendar 2013.
Top B schools like IIMs, MDI, IMI, NMIMS, IIFT have opened their Registration windows for Batch 2014 which will end soon. So, make sure your application meets the B school's deadline.
Is economic slowdown a good time for doing an MBA?