Business Administration vs. Business Management: How Do They Differ for 2025?

Co-Founder and Chief Data Scientist

Business degrees are among the most popular postsecondary programs in the United States. In fact, the discipline accounts for 11% of associate degrees and 19% of bachelor’s degrees conferred in the 2020-2021 academic year (NCES, 2023). It has an even larger share when it comes to master’s in management online, considering the volume of people who take MBAs each year. Within this spectrum stands two of the most sought-after business degrees that are often compared: business administration and business management.

Many tend to ask these questions, “Is business administration the same as business management?", “Is it similar to taking up an entrepreneurship degree or an associates degree in logistics? After all, many surveys and reports lump these degrees together. Although they are similar in many regards, the two fields are different and have their own focus areas and other key characteristics. Business administration is slightly more common and has a broader scope. In contrast, business management is more concerned with molding leaders out of learners.

This article fleshes out a comprehensive business administration vs. business management comparison, accounting for the programs’ defining features, coursework, and possible career paths. In addition, our team of researchers compiled information regarding salary data, job outlook, and some of the factors to consider when picking between the two programs.

Business vs Business Management Table of Contents

What is Business Administration?
What is Business Management?
Business Administration vs. Business Management: Key Differences
Business Administration vs. Business Management: Job Outlook
Business Management vs. Business Administration Salary
Business Administration vs. Business Management: Choosing a Program
How Can I Finance an Online Business Degree?
What are the benefits of online business programs?
What Are the Job Placement Rates and Career Support Opportunities for Business Degree Graduates?
Fast-Track Business Degrees for Working Professionals
What are the fastest online business degree programs and who are they best for?
What is the Return on Investment (ROI) of a Business Degree?
How Does Accreditation Impact the Value of Your Business Degree?
Is an Online Business Degree a Cost-Effective Investment?
What Are the Benefits and Considerations for Pursuing a DBA Online?
What are the future trends influencing business degree programs?

What is Business Administration?

So, what is business administration? The discipline entails coordinating numerous business functions to achieve corporate goals. Its key activities include strategic planning, financial management, marketing, operations, and human resources. Business administration is concerned with maximizing resources, making educated decisions, and maintaining the smooth operation of a company. It gives people a comprehensive understanding of business ideas and processes, preparing them for a variety of responsibilities in many companies and sectors.

A degree in business administration provides students with a thorough understanding of these essential business operations and the information and abilities required to effectively manage and lead firms. It often covers a wide range of topics, such as finance, marketing, operations, management, accounting, economics, and business law, and allows students to pick a specialization from the tackled subjects.

According to Zippia (2022a), there are more than 104,523 business administrators in the United States. In addition, data from the United States Bureau of Labor Statistics (BLS) reveal that the country employs about 239,000 administrative services managers (BLS, 2022a).

Expected Courses

Introduction to Business. This course provides an understanding of the business environment, company functions, and key business concepts.
Accounting. This course discusses essential accounting principles, financial statements, and basic financial analysis. Its topics include budgeting, managerial accounting, and financial accounting.
Marketing. This course navigates the concepts of marketing ideas, market research, customer behavior, branding, advertising, and promotion tactics.
Finance. This course teaches financial management concepts like financial analysis, investment evaluation, risk management, and capital budgeting.
Operations Management. This course concentrates on production process management, supply chain management, quality control, and efficiency optimization.
Human Resource Management. This course discusses subjects like employee recruitment, compensation, performance management, labor relations, and training and development.
Organizational Behavior. This course covers individual and collective behavior in organizations, leadership styles, motivation, communication, and organizational culture.
Business Ethics. This course explores ethical decision-making, corporate social responsibility, and the impact of business actions on society.
Strategic Management. This course navigates subjects like strategic planning, strategic decision-making, competitive analysis, and the design and implementation of company strategies.
Business Law. This course covers the legal principles and laws governing contracts, commercial organizations, intellectual property, employment law, and business ethics.

What is Business Management?

What is business management if business administration is about all the essential aspects of operating a business? Business management involves planning, arranging, and directing an organization’s resources and activities to achieve its goals. It focuses on strategy development and implementation, making educated decisions, and leading teams to success, with some of its primary activities being leadership, decision-making, project management, and organizational behavior. Business management seeks to maximize resource use, stimulate innovation, and ensure effective collaboration to accomplish company goals and drive growth.

In most cases, a degree in business management aims to develop the skills and knowledge required for corporate leadership, which is similar to the objectives of an online hospitality management degree. It teaches students the different elements of business operations, like marketing, finance, strategic planning, project management, and organizational behavior. Graduates of business management programs are equipped for managerial and leadership roles in various industries and sectors.

Zippia (2022b) estimates that there are more than 87,068 business managers in the United States. Additionally, data from the BLS show that about 552,800 managers of companies and enterprises are employed in the country (BLS, 2023a). It is important to note that both business management and business administration degrees lead to management roles in organizations.

Expected Courses

Principles of Management. This course introduces the core theories and principles of management, covering subjects like leading, controlling, leading, and organizing.
Organizational Behavior. This course teaches individual and collective behavior in organizations, motivation, leadership styles, communication, and organizational culture.
Strategic Management. This course explores the principles of strategic planning, competitive analysis, strategic decision-making, and company strategy creation and implementation.
Leadership. This course focuses on leadership theories and styles, team dynamics, conflict resolution, and team management.
Project Management. This course introduces the ideas and procedures of project management, such as project planning, scheduling, resource allocation, and risk management.
Operations Management. This course explores the principles of production process management, supply chain management, quality control, and efficiency optimization.
Financial Management. This course covers financial risk management, financial decision-making, capital budgeting, and financial analysis.
Marketing Management. This course delves into the principles and applications of marketing strategies, market research, product creation, branding, pricing, distribution, and promotional activities.
Human Resource Management. This course covers subjects such as recruitment, performance management, staff development and training, labor relations, and compensation procedures.
Entrepreneurship. This course looks into the entrepreneurial process, the creation of new ventures, innovation, and entrepreneurial management.

Business Administration vs. Business Management: Key Differences

The difference between business administration and business management lies in five main areas: focus, scope, the developed skills of learners, possible career paths, and certifications. Some differences in this business administration vs. business management comparison may be subtle, but their outcomes are sometimes distinct.

Focus

The typical bachelor’s degree in business administration provides a thorough grasp of many business activities, which include finance, accounting, marketing, entrepreneurship, operations, and strategic management. It provides an in-depth introduction to business principles and procedures.

Meanwhile, an accredited bachelor degree in business management focuses on the development of leadership, decision-making, and operational skills. It focuses on the operational and managerial aspects of running and managing a business, such as strategic planning, organizational behavior, human resource management, and project management.

Scope

A business administration degree opens up more professional opportunities, given its wider range of subjects covered. It helps build a strong foundation in business fundamentals and can lead to a variety of professions, such as general managers, consultants, analysts, or entrepreneurs. On the other hand, a business management program is typically oriented toward people who want to be managers or leaders in an organization. It trains students for managerial positions such as department managers, team leaders, and executives in charge of specific company zones.

Skill Development

A business administration degree seeks to build diverse abilities applicable to various corporate functions. Finance, marketing, operations, accounting, communication, and critical thinking skills are all required. One of the program’s primary outcomes is to gain a comprehensive understanding of corporate processes. According to Zippia (2022c), the most common skills on the resumes of business administrators are customer service (12%), PowerPoint (7.2%), payroll (7.1%), team support (7%), financial statements (5.3%), oversight (4.2%), and the use of Microsoft Windows (4.1%).

On the other side, a business management degree’s curriculum often focuses on building abilities in leadership, decision-making, problem-solving, team management, and strategic thinking. The program provides students with the information and tools to manage people and resources effectively. According to Zippia (2022d), the most common skills on the resumes of business managers are customer service (20.5%), PowerPoint (7.2%), project management (6.5%), human resources (6.1%), payroll taxes (4.8%), business plan (4.4%), and business management (4.2%).

Interestingly, in comparing business administration vs. business management skills, the former tends to be broader while the latter is more inclined toward management and leadership.

Career Paths

Business administration graduates can pursue a wide range of job options in finance, marketing, operations, consulting, entrepreneurship, or even start their own companies. On the other hand, business management graduates frequently pursue professions in managerial or leadership roles inside firms. They may work in various fields, such as retail, manufacturing, healthcare, hospitality, or technology.

Despite the difference in jobs primarily applied for by graduates, students of business administration have access to many of the jobs available to business management students and vice versa since both disciplines overlap in numerous regards, given the broad scope of business areas, concepts, and applications tackled. Moreover, what is a master’s degree for a business student? Business administration and business management students often take a Master of Business Administration (MBA) to advance their studies, which leads their career paths to intersect and merge in the long run.

Certifications

Since there is a slight difference in course content covered by business administration vs. business management programs, the same can be said regarding certifications. While the two disciplines share several certifications, some certificates are more oriented to the developed competencies of each degree. The certifications they share include the following:

Project Management Professional (PMP)
Six Sigma Certifications
Lean Management Certifications

Meanwhile, these are some of the certificates that are geared toward the competencies of business administration students:

Certified Business Administrator (CBA)
Certified Business Analysis Professional (CBAP)
Professional in Business Analysis (PBA)

For business management students, the following are some of the ideal certifications to pursue:

Certified Manager (CM)
Certified Manager of Training and Development (CMTD)
Certified Management Consultant (CMC)

Business Administration vs. Business Management: Job Outlook

Graduates of business management and business administration have access to a wide range of jobs with high demand, including operations management, team management, accounting, finance, human resources, and marketing. But perhaps the most significant advantage of business administration and business management students is that they are trained to establish their own businesses, which can either create or further demand for particular products or services.

In comparing business administration vs. business management in this regard, according to the BLS (2022b), the employment of management occupations in the United States is set to grow by 8% from 2021 to 2031. This is slightly higher than that of administrative services managers (7%) and the collective job outlook of all US occupations (5%) for the same period (BLS, 2022a).

The slightly higher demand for management occupations does not automatically mean that business management students have a better job outlook than business administration students since learners of both disciplines have access to one another’s career paths, especially after pursuing an MBA.

Business Management vs. Business Administration Salary

In comparing business management vs. business administration salary, the wages for both disciplines are exceptionally high. Business management occupations have a slight edge in this regard, with professionals taking home a median annual salary of $107,360 and an average annual salary of $131,200 (BLS, 2023b). Meanwhile, administrative services managers receive a median annual salary of $103,330 and an average annual salary of $115,640 (BLS, 2023a). These figures are considerably higher than the collective median annual wage of all US occupations, which is $45,760 (BLS, 2022b).

Even though the numbers suggest that in a business administration vs. business management comparison students of the latter have a salary advantage, the reality is a bit more complicated than this. Business administration graduates can enter many professions that business management students do and vice-versa. Moreover, they both take MBAs for their graduate studies. Business managers with master’s degrees, whether business administration or business management majors, earn a median annual salary of $116,734 (Zippia, 2023).

Business Administration vs. Business Management: Choosing a Program

Given the merits of business administration vs. business management, students tend to have a tough time choosing between the two when looking for a degree. Our team of researchers prepared several factors to consider when choosing a program and which degree is suitable for a variety of scenarios.

Career Goals

Students should consider the type of career they want for themselves before picking a degree. Studying business management may be a better fit if they aim to be managers or leaders in an organization. If they have a diverse set of interests and wish to learn about several company functions, business administration may be a more suitable choice.

Preferred Skills

Learners are advised to consider what skills they want to learn and enhance. A degree in business management appears to be the better option for students who are particularly interested in improving their skills in leadership, strategic thinking, and decision-making. On the other hand, students who aim to gain a well-rounded understanding of numerous business tasks such as finance, marketing, and operations might be better suited for a business administration degree.

Coursework

Students should examine the curriculum and course offerings of various programs. In comparing business administration vs. business management degrees, they should check the availability of courses relevant to their hobbies and job objectives. Examine the depth and breadth of each program’s subject coverage to see which best matches their desired skill set.

Business administration has a wider coverage and can come with various specializations, which leads to a diverse career path. On the other hand, business management fosters leadership and management in different business areas and settings.

Flexibility

A business administration degree potentially has broader employment options and may provide students with a wider range of industries and roles they can pursue. Meanwhile, business management degrees place a stronger emphasis on leadership and management skills, which may partially limit one’s options to managerial or supervisory positions. Some business management programs, however, contain courses in finance, accounting, human resources, and other business areas, placing students on the same playing field as those taking up business administration. As such, aspirants should always check a program’s course offerings before settling on one.

Both are Safe Choices

Students may feel they picked the wrong choice between business administration vs. business management in the course of their studies. This is not a huge concern since the two disciplines have numerous similarities in coursework and outcomes. In fact, picking any of the two appears to be a good idea.

Business majors, including those taking up business administration and business management, have a projected average annual salary of $60,695, making business the fifth-highest-paid major in the United States (NACE, 2022). Moreover, 61.3% of employers want to hire business administration and business management majors. This makes business the third-most-in-demand major in the country. The possible careers of the only majors that outrank business in terms of demand—finance and accounting—are accessible to business majors since both disciplines are woven into the coursework of business management and business administration degrees.

How Can I Finance an Online Business Degree?

Strategic financial planning is essential when choosing an online business degree. Evaluating tuition costs, scholarship opportunities, and flexible payment plans can help ensure that the investment aligns with long-term career goals. Students should compare funding options and program affordability, including exploring the cheapest online business administration degree, to balance quality education with manageable debt. Additionally, researching federal aid, grants, and work-study programs may provide further financial support while maintaining access to accredited and competitive programs.

What are the benefits of online business programs?

Online business degrees are increasingly popular due to their flexibility, affordability, and accessibility, especially for working professionals. One of the biggest advantages is the ability to study while maintaining a full-time job or other commitments. With asynchronous learning options, students can access course materials at their convenience, allowing them to balance education with real-world experience. Additionally, online programs often offer a wider variety of specializations and elective courses compared to traditional, on-campus programs, allowing learners to tailor their education to their career goals.

For those looking to save on tuition costs, there are also affordable options available, including the cheapest AACSB accredited online MBA, which provides high-quality education at a lower price point. Furthermore, many online business programs are accredited by reputable bodies, ensuring that the degree holds weight in the job market. The networking opportunities, although virtual, are also substantial, as students can connect with professionals, faculty, and peers from around the world. Overall, online business degrees offer a convenient and cost-effective way to advance one's career without sacrificing other priorities.

What Are the Job Placement Rates and Career Support Opportunities for Business Degree Graduates?

Business degree programs increasingly emphasize structured career support alongside academic excellence. Many institutions offer comprehensive career services that include personalized counseling, resume workshops, targeted interview preparation, and access to industry-specific job fairs. These programs often publish detailed job placement statistics, reflecting strong employer partnerships and established internship pipelines that help graduates transition efficiently into relevant roles. Moreover, academic institutions may enhance professional readiness through integrated mentorship initiatives and extensive alumni networks, bridging the gap between education and the labor market. Graduates seeking to further boost their career prospects can consider pursuing affordable MBA programs, which combine advanced coursework with strategic career services to support long-term professional growth.

Fast-Track Business Degrees for Working Professionals

For busy professionals seeking to advance their careers without stepping away from their current roles, fast-track business degrees offer an ideal solution. These programs are designed to compress the curriculum into a shorter time frame while maintaining academic rigor, enabling students to earn a degree in as little as 12 to 18 months. Both business administration and business management disciplines are increasingly offering accelerated options, often through online platforms, making them accessible to a global audience.

Accelerated business degrees cater to learners who wish to develop leadership and managerial skills quickly to stay competitive in today’s dynamic job market. For instance, programs like one year online masters in healthcare administration integrate core business principles with industry-specific insights, preparing graduates for roles that demand both technical expertise and strategic thinking.

Students enrolled in these programs benefit from flexible scheduling, allowing them to balance work and studies seamlessly. Fast-track options often leverage technology-driven learning environments, providing resources such as virtual simulations, project-based assessments, and interactive modules. These programs not only save time but also offer significant cost advantages by reducing overall tuition expenses.

Whether you are a mid-career professional aiming for a leadership role or an entrepreneur seeking to enhance your business acumen, fast-track degrees can be a transformative step toward achieving your goals. With careful planning and commitment, these programs offer a high return on investment by accelerating your career trajectory without compromising on quality education.

What are the fastest online business degree programs and who are they best for?

For students and professionals seeking to expedite their education, fast-track online business degree programs are an ideal solution. These programs are designed for individuals who want to quickly gain the skills and credentials necessary to advance in their careers or transition into new roles. Accelerated programs often allow students to complete a business degree in as little as 12 to 18 months, significantly reducing the time compared to traditional degree tracks.

Fast-track programs typically include intensive coursework and are best suited for motivated learners who can dedicate focused time to their studies. Many of these programs cater to working professionals by offering flexible schedules, asynchronous classes, and credit for prior learning or work experience.

To explore the best accelerated options, check out this guide to fastest business degree online for a curated list of programs tailored to diverse career goals and educational needs.

What is the Return on Investment (ROI) of a Business Degree?

Evaluating the ROI of a business degree involves a detailed analysis of tuition investment, potential salary increments, and long-term career advancement. Financial benefits become clear when graduates secure roles that offer competitive remuneration and growth opportunities, making the initial expense a strategic investment. Comparisons of upfront costs with enhanced earning capacity, faster professional progression, and reduced payback periods are integral to this assessment. For example, opting for an accelerated path like a fast track MBA program can streamline the journey toward higher positions and improved financial returns. Emphasizing measurable outcomes helps prospective students make an informed decision based on transparent, data-driven comparisons.

How Does Accreditation Impact the Value of Your Business Degree?

Choosing a program with recognized accreditation ensures that the curriculum meets rigorous academic and industry standards while enhancing your professional credibility. Institutions that are properly vetted provide quality instruction, transparent financial practices, and better support for career development. For example, reviewing online business degree programs accredited can help verify that a program aligns with the benchmarks employers expect. Accreditation also influences eligibility for federal financial aid, credit transfers, and pathways to advanced studies, making it a key factor in safeguarding your investment and boosting long-term career prospects.

Is an Online Business Degree a Cost-Effective Investment?

Evaluating the financial implications of an online business degree is essential for prospective students. Consider not only tuition and associated fees but also long-term benefits like increased earning potential and career advancement opportunities. Effective cost analysis should factor in potential debt, available financial aid, and program-specific expenditures. Prospective learners are encouraged to compare program expenses by reviewing detailed data on business management degree cost to ensure that their investment aligns with personal career goals and overall return on investment.

What Are the Benefits and Considerations for Pursuing a DBA Online?

Pursuing a Doctorate in Business Administration (DBA) online can serve as a strategic move for professionals seeking to expand their expertise beyond master’s level education. This advanced degree emphasizes practical research, in-depth industry analysis, and the development of innovative strategies that are directly applicable to high-level management and consultancy roles. A carefully selected online DBA program provides flexibility for working professionals while maintaining rigorous academic standards that build on real-world experience. Additionally, evaluating program affordability is key; learners can explore options such as the cheapest DBA degree online to balance quality education with financial feasibility without sacrificing career growth or academic excellence.

What are the future trends influencing business degree programs?

Business degree programs increasingly integrate emerging technologies and methodologies to stay aligned with the evolving business landscape. Cutting-edge curriculum now emphasizes digital transformation, data analytics, and agile leadership, ensuring graduates can navigate a rapidly changing economic environment. Institutions often incorporate practical modules on artificial intelligence, automation, cybersecurity, and digital marketing, which are essential for addressing modern business challenges. Furthermore, enhanced experiential learning through virtual simulations, remote collaboration projects, and targeted career support is becoming standard. For instance, many schools now offer accelerated MBA programs that leverage these innovations, broadening the skill set of professionals while keeping pace with industry trends.

Which Business Program is Better?

There is no simple answer to the questions, “What is a better degree, business administration or business management?", “Is a graduate certificate in human resources online good?", or “Is a master in human resources online just as good as the traditional one?" After all, the disciplines are similar enough to be regularly bundled together in reports, surveys, and research papers but possess ample distinction to become separate degrees. What is a business degree that leads to the ideal outcomes for most aspirants? It really depends on a learner’s goals and preferences since the two programs have comparable salaries, job outlooks, and outcomes.

In a business administration vs. business management comparison, business administration degrees tend to have a superior breadth of subjects covered, presenting more available specializations to learners who plan to learn and master particular business areas. On the other hand, business management degrees underscores leadership and management in a given set of business areas, depending on a school’s discretion. Generally, a student who aims to specialize in an area of business would likely find business administration a more suitable choice. In contrast, those who intend to become business managers or enter leadership roles will find what they are looking for in a business management degree.

Key Insights

Popular Degree Choice: Business degrees, including business administration and business management, are among the most popular postsecondary programs in the U.S., accounting for significant percentages of both associate and bachelor's degrees conferred.
Distinct Focus Areas: Business administration has a broader scope, covering a wide range of business functions such as finance, marketing, operations, and human resources, while business management is more focused on leadership, decision-making, and strategic planning.
Career Versatility: Graduates of business administration can pursue various roles in finance, marketing, operations, consulting, and entrepreneurship. Business management graduates are typically geared towards managerial and leadership roles in various sectors.
Skill Development: Business administration programs develop a wide range of skills, including finance, marketing, operations, and critical thinking. Business management programs emphasize leadership, decision-making, team management, and strategic thinking.
Job Outlook and Salaries: Both degrees offer promising job outlooks and high salaries, with management occupations expected to grow by 8% from 2021 to 2031. Business management occupations generally offer slightly higher salaries compared to business administration roles.
Certification Opportunities: Both degrees offer pathways to various certifications that enhance career prospects. Common certifications include PMP, Six Sigma, and Lean Management, with additional specific certifications available for each discipline.
Educational Flexibility: Both degrees can be pursued online or on-campus, providing flexibility for working professionals and those with other commitments.

FAQ

What is the main difference between business administration and business management? The main difference lies in their focus areas. Business administration covers a broad range of business functions, while business management focuses more on leadership, decision-making, and strategic planning.
Which degree is better for someone who wants to become a manager or leader in an organization? A business management degree is typically more suitable for those aiming to become managers or leaders in an organization, as it emphasizes leadership and strategic thinking skills.
Can graduates of business administration pursue leadership roles? Yes, graduates of business administration can also pursue leadership roles. The degree provides a comprehensive understanding of various business functions, which can be valuable in managerial positions.
What career opportunities are available for business administration graduates? Business administration graduates can pursue careers in finance, marketing, operations, consulting, and entrepreneurship. They are equipped to handle various business functions and may also start their own businesses.
What career opportunities are available for business management graduates? Business management graduates often pursue managerial and leadership roles within organizations. They may work in sectors such as retail, manufacturing, healthcare, hospitality, or technology.
Are there significant salary differences between business administration and business management graduates? Both degrees offer high salaries, with business management occupations slightly edging out business administration roles. However, the specific salary can vary based on the industry, role, and individual qualifications.
What skills are emphasized in a business administration program?Business administration programs emphasize a wide range of skills, including finance, marketing, operations, accounting, communication, and critical thinking.
What skills are emphasized in a business management program?Business management programs emphasize leadership, decision-making, problem-solving, team management, and strategic thinking skills.
Can business administration and business management students pursue the same certifications? Yes, there are common certifications both can pursue, such as PMP, Six Sigma, and Lean Management. However, there are also specific certifications tailored to each discipline, like CBA and CBAP for business administration and CM and CMC for business management.
Which degree offers more flexibility in terms of career options? A business administration degree offers broader employment options due to its wide coverage of business functions. However, business management degrees also provide substantial flexibility, particularly for those seeking managerial or leadership roles.
Is it possible to switch from a business administration program to a business management program or vice versa? Yes, switching between business administration and business management programs is generally possible, especially early in the academic journey, as both disciplines share foundational coursework and have overlapping career outcomes.

References:

BLS (2022a). Administrative Services and Facilities Managers. BLS
BLS (2022b). Management Occupations. BLS
BLS (2023a). 11-0000 Management Occupations (Major Group). BLS
BLS (2023b). 11-3012 Administrative Services Managers. BLS
NACE (2022). NACE Salary Survey. NACE
NCES (2023). Undergraduate Degree Fields. NCES
Zippia (2022a). BUSINESS ADMINISTRATOR DEMOGRAPHICS AND STATISTICS IN THE US. Zippia
Zippia (2022b). BUSINESS MANAGER DEMOGRAPHICS AND STATISTICS IN THE US. Zippia
Zippia (2022c). BUSINESS ADMINISTRATOR SKILLS FOR YOUR RESUME AND CAREER. Zippia
Zippia (2022d). BUSINESS MANAGER SKILLS FOR YOUR RESUME AND CAREER. Zippia
Zippia (2023). BEST COLLEGES AND MAJORS FOR BUSINESS MANAGERS. Zippia