What is Business Administration?

In an era where the business landscape is always on the move, have you ever wondered what keeps businesses afloat? The answer lies in two words: business administration. This field allows companies to achieve organizational goals and objectives through improved use of resources.

Business administration degrees dive deep into business principles and practices, teaching you how to analyze market data, understand consumer needs, and make decisions that benefit businesses. Moreover, these credentials allow you to advance in your career and explore diverse industries. 

In this blog, we'll explore what business administration is, delve into the different educational pathways, and explore popular career options in the field. Let's delve right in!

What is Business Administration?

Business administration is a broad field that encompasses many different roles and business areas. Simply put, business administration ensures that businesses and companies run efficiently and effectively. Nearly every type of business, from a small startup to a major corporation, relies on business administration professionals to ensure success. They work to manage an organization's people, time, and resources in a manner that allows businesses to meet their short and long-term goals. 

This field includes many business areas, including human resources, marketing, finance, project management, ethics, and accounting. For that reason, a business administration degree typically covers the essential functions and mechanics of operating a business, including core components such as management, finance, marketing, and operations. 

What Do Business Administrators Do?

Business administrators are responsible for the overall management of an organization. This includes managing staff, organizing and overseeing departments, and motivating and training employees.

These professionals also oversee and direct financial activities, analyze sales reports, and study market and economic trends. Moreover, they develop strategies to improve processes, implement business ethics principles, and consult with executives, board members, and staff.

To succeed in business administration, you must be willing to lead staff members confidently and be ready to take on new challenges as they arise. Therefore, it's crucial to build a strong foundation of business practices and principles through a degree in business administration. 

Education Requirements

If you're preparing to pursue a career in business administration or advance in your career, there are a few different degree options you can explore. Let's examine the educational pathways in business administration and how these degrees can help you in your professional journey.

Associate Degree in Business Administration

An associate degree in business administration typically completed within two years, covers fundamental aspects of business operations, statistics management, accounting, marketing, and communication skills. Courses often include introduction to business practice, business law, data analysis, real estate practice, etc. 

After earning this credential, you can pursue entry-level administrative, sales, and management roles, such as a project coordinator, customer service representative, office manager, administrative assistant, etc. This degree also serves as a stepping stone for further education and specialization within the field. 

Bachelor's Degree in Business Administration (BBA)

As with all undergraduate programs, a bachelor's degree in Business Administration (BBA) takes about four years to complete. It offers a comprehensive curriculum covering courses in various disciplines, such as finance, business law, marketing, and economics.

The program also often includes internships or field experience, allowing students to apply theoretical knowledge to real-world situations. 

As you develop more skills and complete internships, after finishing your undergraduate studies in business administration, you're prepared to pursue diverse career opportunities as a financial analyst, marketing manager, business development manager, operations manager, sales representative, etc. Holding a BBA also allows you to enjoy higher compensation and more opportunities for advancement into leadership roles.  

Master's Degree in Business Administration (MBA)

A master's degree in business administration (MBA) typically lasts one to two years. This credential focuses on advanced business principles, leadership, and strategic management. Core courses include business law, strategic marketing, international management, operations strategy, and so on.

MBA programs often include real-world case studies, collaborative projects, and interactions with industry professionals, providing you with a dynamic and immersive learning experience.

After graduating, you can find career opportunities spanning across industries and taking roles such as accounting manager, project manager, logistics manager, data analyst, etc. Earning an MBA unlocks opportunities such as career advancement, increased earning potential, expanded skill set, networking opportunities, and more. 

Doctoral Degree in Business Administration (DBA)

A doctoral degree in business administration (DBA) typically takes three to six years and focuses on advanced research in business theory and practice. It allows you to specialize in areas such as management science, organizational behavior, finance, economics, information technology management, etc. Moreover, it provides the perfect avenue for you to conduct independent research in business and management. 

As a DBA holder, you can pursue careers in academia, consulting, leadership, government, and non-profit organizations. Specifically, you can become a business consultant, c-suite executive, university professor, director of human resources, government program manager, etc. 

Business Administration: Salary and Job Outlook

According to the Bureau of Labor Statistics (BLS), the median wage for business and financial professionals is $79,050. However, this salary varies greatly depending on the specific role. For example, business analysts enjoy a compensation of $105,988, business development managers $140,483, and marketing managers $157,620.

BLS also estimates the overall employment in business and financial occupations to grow faster than the average for all occupations over the decade, with about 911,400 openings projected each year. This demand for business professionals, including business administrators, is due to their specialized knowledge and skills in running a business efficiently and effectively.

Business Administration Jobs

A business administration degree can lead to careers in diverse industries, including banking, insurance, finance, government, marketing, and more. Let's explore some popular jobs you can get with a business administration degree. 

Business development manager

Business development managers are key members of the go-to-market team. These professionals are responsible for helping organizations achieve their long-term goals and expand into new markets by locating new business opportunities. They do so by assessing the company's target market and industry as well as developing strategies to gain new clients. 

To prepare for a career as a business development manager, you must develop professional skills such as strategic planning, market analysis, sales and negotiations, data and financial analysis, and budget management. 

You also must hone interpersonal skills in communication, networking, team collaboration, and mentoring. 

The educational pathway to becoming a business development manager involves earning a bachelor's degree in business administration, finance, business management, marketing, or a related field. You should also obtain the Certified Business Development Manager (CBDM) credential.

Business analyst

Business analysts are business professionals who use data to form business insights and recommend changes. They identify areas where an organization can increase efficiency and strengthen its business processes.

To become a business analyst, you must sharpen skills like data analysis, communication, business acumen, and business analysis methodologies. You can develop these skills by earning a bachelor's degree in business administration, data science, economics, or a similar field.

Moreover, you can earn relevant certifications such as IIBA Entry Certificate in Business Analysis (ECBA), PMI Professional in Business Analytics (PMI-PBA), and IIBA Certification of Capability in Business Analytics (CCBA).

Human resources (HR) manager

Human resources (HR) managers are professionals who oversee a company's administrative and organizational functions. They are responsible for recruiting new staff, overseeing disciplinary procedures, and managing employee benefit and compensation programs.

As you will deal with employee relations, as an HR manager, you must possess communication, leadership, organization, and interpersonal skills.

The minimum educational requirement to enter the field is a bachelor's degree; however, some employers prefer candidates who hold a master's degree in business administration with a concentration in HR. To enhance your resume and demonstrate the skills needed for the job, you can also earn certifications like Professional in Human Resources (PHR) and Certified Professional in Talent Development (CPTD). 

Marketing manager

Marketing managers are professionals responsible for generating customer interest in products and services across media channels. They organize and manage marketing campaigns, direct social media engagement strategies, perform market research to find new opportunities, and more. 

To thrive in this role, you must possess analytical, critical thinking, project management, writing, and interpersonal skills. Moreover, you need to earn a bachelor's degree in marketing, business management, or a related field. While not required, you can also benefit from a master's degree in business administration with a concentration in marketing. 

The Bottom Line

A business administration degree opens up a world of possibilities, providing you with a solid foundation for a successful and lucrative career in business. Whether you want to analyze data or oversee marketing campaigns, a degree in business administration equips you for roles in various industries and settings.

Earning a credential in business administration, from an associate's degree to a doctoral degree, allows you to hone problem-solving, critical thinking, and leadership skills, which are sought after worldwide.

So, the big question stands: is business administration right for you? If you're organized, analytical, detail-oriented, and thrive in a dynamic, fast-paced environment, a career in business administration may be your perfect fit. Explore our bachelor's and master's programs in business administration to learn more about this exciting field. 

Frequently Asked Questions:

What skills does a business administrator need?

A business administrator needs strong organizational and time management skills to manage daily operations efficiently. They also need practical communication skills, problem-solving, and decision-making abilities.  Financial acumen is essential for budgeting, financial planning, and analyzing financial statements. 

What is the best job for business administration?

A business administration degree opens doors to various careers. Some of the best career paths include business analyst, chief financial officer (CFO), business development manager, and marketing manager. 

What is the highest-paid job in business?

The highest-paid career in business is chief executive officer (CEO), with a salary of $842,418.

What major is best in business administration?

The best majors or concentrations within business administration include accounting, entrepreneurship, finance, marketing, and organizational leadership.