Business Administration vs Economics
Hi all,
I will be a senior in high school, meaning that the window for choosing my major is closing rapidly. I am debating between doing a business administration degree vs an economics degree.
Here are the pros and cons in my view (please do correct me if I am wrong):
business administration
pros:
- easier major (more time to focus on internships)
- more direct applicability (understanding accounting is crucial for a career in business)
cons:
- looked down upon (not a rigorous major)
economics
pros:
- rigorous major (more math-heavy and quantitative)
- looked more favorably in the eyes of recruiters
cons:
- not applicable as much (unless you want to work in trading or a macro HF)
- less time to focus on internships
Please correct me if anything I said is incorrect, as these assumptions are based solely on what I heard. I also feel like the problem of a business major being just fluff can be solved with a double major in math or a minor in math (or any STEM subject).
Thanks in advance.
Based on the most helpful WSO content, here's a breakdown of your dilemma:
Business Administration
Pros: 1. Easier Major: This is generally true, as business administration programs often focus on practical, less math-intensive coursework. This can free up time for internships and networking, which are crucial for landing jobs in finance or consulting. 2. Direct Applicability: Understanding accounting and other business fundamentals is indeed valuable, especially for roles in corporate finance, investment banking, or consulting. Many professionals note that a strong accounting background helps you "hit the ground running."
Cons: 1. Perception of Rigor: Business administration degrees are sometimes viewed as less rigorous compared to economics or STEM majors. However, this perception can be mitigated by attending a prestigious school or excelling in internships and extracurriculars.
Economics
Pros: 1. Rigor and Quantitative Skills: Economics is often seen as more challenging due to its math-heavy and analytical nature. This can be advantageous for roles in trading, quantitative finance, or macro hedge funds. 2. Recruiter Perception: Economics degrees are often viewed more favorably by recruiters, especially if you attend a target school and take advanced quantitative courses.
Cons: 1. Limited Direct Applicability: While economics provides a strong theoretical foundation, it may not be as directly applicable to day-to-day tasks in corporate finance or investment banking. You may need to supplement your knowledge with accounting or finance courses. 2. Time for Internships: The rigor of an economics degree might leave less time for internships, which are critical for breaking into competitive industries.
Additional Considerations
Ultimately, your choice should align with your career aspirations, academic strengths, and the resources available at your chosen school.
Sources: https://www.wallstreetoasis.com/forum/investment-banking/liberal-arts-vs-undergraduate-business?customgpt=1, Finance Degree Worth More Than Accounting Degree?, https://www.wallstreetoasis.com/forum/school/dilemma-quantitative-finance-vs-finance?customgpt=1, What should I major in to get into investment banking from a non-target school?, Why you should consider Notre Dame for undergrad
Focus on getting a high GPA. Breaking into IB isn’t about the rigor of your classes.
Thank you for your response, but I don't think that answered my question. I know that gpa is obviously important. By "rigor", do you mean that an econ major would be better?
They probably meant to say that breaking into IB has nothing to do with class rigor. GPA is more important and bus. admin has more applicable coursework so you should probably go for that.
Business administration and never look back. No recruiters will care that you did econ. It’s not what most would consider a “rigorous” major, so it wouldn’t help you much there. With econ, you’re just going to end up taking a lot of classes that have virtually no relevance to finance (outside of maybe intro level macro). These classes are also harder than a lot of finance/biz classes, so it’ll be tougher to keep a high GPA. Lastly, with biz classes you’ll be more likely to have professors who have done finance or are well-connected, and you’re also more likely to befriend kids who are also doing finance recruiting. Easier classes, more relevance, and better networking—the choice should be obvious. Take it from someone who did two mostly useless years of econ before transferring to my school’s b-school.
Thank you so much. I was also thinking the same way. Would it be good to pair the business administration degree with a math minor/major?
If you're good at math and can get good grades in it, then sure. Overall, though, your minor is extremely inconsequential. It really doesn't matter. Some people do minors in areas of intellectual interest like philosophy or history. Some do sectoral interests like sustainability. Others don't do any minors and just take the most credits they can in finance or accounting. My advice would be to do a finance/biz major and, once you're there, see what gen ed classes you like and if you'd want to pursue a minor in any of those. But again, it really doesn't matter. Your number 1 priority should be getting goods grades, getting into a good finance club (if that's a thing at your school), and just having a good time in college.
depending on the school, double major is an option. I doubled biz admin (concentration finance) and economics. In my case there was so much overlap with econ that i only needed to take 4 more econ classes to major by the time I finished the biz admin.
If biz admin is available at your school but you don't take it, econ is probably one of the worst alternative majors you can take. Recruiters know that generally speaking the undergrad business majors are more competitive than other majors and that Econ is the most common dumping ground for people who wanted to do business but didn't get in so if you go Econ, you're going to have an uphill (but not insurmountable battle). Comparatively if you take Math or CS or something else stem related, you're more likely to be perceived as a smart kid who just wanted to study something else vs. being perceived as a reject from the business school even if it's not true.
E.g. if you're at Michigan the recruiting probably goes Ross > CS > other STEM > Liberal Arts/Econ/etc
At Penn (and I'm guessing Michigan/Berkeley too to an extent) you can probably get away with Econ on the strength of the school as a whole but GL if you're at anywhere below that
Thanks for the reply. This is very different from what I heard from other people and what I read on other wso threads. Everybody else (within my circle lol) says that econ is much "harder" and that "any econ person would be able to the same job a business major can do, probably better". What makes you say that bus admin is more competitive and better viewed?
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