Business Administration vs. Economics: What Is the Difference?

Many people tend to mix business administration and economics. This might come as a result of  these fields dealing with companies, finances, and goods. Nevertheless, if you search a little bit for these two degrees you might as well draw some comparisons. We did this research for you, so if you want to be one of those few people who know the difference between economics and business administration, keep on reading and learning.

What Is Business Administration?

To understand it better, business administration is the managing of the people, the resources, and the time of any company or organization.

People working in the business administration field, make sure that those companies and/or organizations function properly in terms of finances, and efficiency. This is not always an easy task to accomplish since it does require knowledge and skills from numerous different fields.

Entry requirements

Depending on the university and the level of study,  the entry requirements vary. Having good communication skills, as well as technical skills are some tools that might serve you to enroll in a business administration degree. Being sharp-witted and attentive to details, managing time, solving problems, working in teams, and having managing skills will ease your path towards obtaining a business administration degree.

Curriculum

Similar to entry requirements, the curriculum may slightly differ from one university to another. However, some core components include the following:

Accounting 

  • Cost Accounting

  • Intermediate Accounting

  • Financial Statement Analysis/Business Valuation

Entrepreneurship

  • Small Business Management

  • Entrepreneurship

  • Business Plan Preparation

Finances

  • Accountant

  • Budget analyst

  • Financial advisor

  • Loan officer

  • Cost estimator

Healthcare Administration

  • Healthcare Economics

  • Healthcare Strategic Management & Policy

  • Organizational Behavior

Public Administration

  • Policy Analysis and the Role of the Public

  • American Politics

  • Public Fiscal Management

Marketing

  • Social Media and Marketing Communications

  • Marketing Research

  • Consumer Behavior

Organizational Leadership

  • Principles of Management

  • Business Plan Preparation

  • Leadership and Organizational Behavior


Skills

Both soft skills and hard skills are needed to work in business administration. The former set of skills includes the ability to convey ideas, convince others, provide and receive feedback and deliver interactive presentations that also contain useful information. Surely, knowing about finances, accounting, HR, marketing, and even technology of information are some other abilities that people who work in business should have. 

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In order to be successful in business, people must be able to communicate simply and efficiently. In business administration, working as part of a team and on joint projects is a regular need. One, but not the only struggle is organizing your work and making sure you prioritize your tasks. Some of the most favorite people in each work environment are those team members other colleagues and supervisors can count on and also one of the main factors for a company to be successful. 

Job prospects & salary

A bachelor's degree in business is an excellent strategy to position oneself within the job market and attract potential employers' attention. Business administration is ranked in the top five college majors for finding full-time work after graduation by the National Association of Colleges and Firms, with 48.7% of responding employers planning to recruit new business administration graduates in the next year.

Pursuing a business profession may potentially result in competitive pay. According to the U.S. Bureau of Labor Statistics (BLS), the annual mean wage for business and finance jobs in 2020 was $80,680, contrasted to $56,310 for all other jobs.

What Is Economics?

Economics is a social science that studies the complete range of factors that affect financial conditions and actions. From producer to consumer, economics examines how individuals and organizations use and share the world's resources. At both the local and global levels, this entails studying psychology, politics, law, psychology, geography, sociology, and history.

Microeconomics and macroeconomics are the two primary branches of economics. Microeconomics examines the actions and interactions of single agents such as households, businesses, buyers, and sellers. Macroeconomics looks at topics including unemployment, inflation, economic growth, and monetary and fiscal policy on a national or global scale.

Entry requirements

Not different from other fields, if you want to enroll in economics, the entry requirements differ depending on the university’s program. 

Curriculum

The mathematical analysis, oral and writing communication, problem-solving, and research techniques training in the economics degree program will equip you with a firm foundation. Some key courses you will have ingrained in each economics curriculum are:

  • Introduction to microeconomics

  • Introduction to macroeconomics

  • Pre-econometrics

  • Public policy analysis

  • Advanced macroeconomic theory

  • Introduction to economic research

Skills

Some general abilities one should have when applying for economics are: data analysis, written and verbal communication, and the capacity to reduce difficult topics and extract the key pieces of information are all examples of logical and critical thinking.

Job prospects & salary

A degree in economics will help you get a job in a variety of fields, regardless of what business you work in. The global labor market is in high demand for numerate graduates, and the broadly transferrable in analysis and problem-solving skills acquired by students majoring in economics means that the opportunities for careers in economics are wide and exceedingly varied.

Based on your interest, with a degree in economics, you can become an economist, data analyst, economic researcher, financial planner, investment analyst, public sector roles, accountant, financial consultant, actuary, and more.

According to the BLS, the national average annual compensation for an economist is $116,020, which is far more than double the average annual income for all occupations, which is $51,960. However, depending on whatever state you live in, the typical economist's pay varies greatly. The states with the lowest pay for economists pay roughly $55,000 less on average than the average income.

Business Administration vs. Economics: Which Is the Right One for You?

Laying out the difference between business administration and economics and analyzing, as well as comparing their curriculum and programs can best help you to choose one or another. 

The fundamental distinction between these two degrees is that the business degree gives a more comprehensive general education, allowing graduates to work in a variety of sectors. When it comes to finding acceptable jobs, those with an economics degree have fewer options. 

The most crucial question to ask yourself is whether you are a "big picture" or "detail-oriented" person. If you want to know how the economy works, you should study economics. If all you want to do is manage or work for a certain company, business administration is the course for you. If you want to study economics or business, you'll need to know a little something about both. 

After all, business administration and economics degrees most possibly lead to a comparable set of job opportunities. They are nearly interchangeable in this regard. The most important considerations are whether an economics degree is too broad and whether there are currently too many people studying business administration. However, it is most likely to have the same subjects the first years of studying, so if you feel more comfortable with one than the other, you can switch to the other subject quite easily.

Conclusion

Both business administration and economics are extremely important for economic growth and development. One or another, in line with your academic preferences, helps you better understand the field and become a professional. With the differences drawn out for you, now you have a clearer idea of what is best for you. All that’s left to do is for you to choose.

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