Now's a good time to do an MBA

A year on from September 11 and the economic dust is only just starting to settle. But while the shock waves of recession have been felt worldwide throughout commerce and industry, it seems business schools are particularly well placed to ride them out.

"You'd have thought that given what has happened in the stock markets, things would have changed, but demand for MBAs has stayed very healthy," says James McAlman, Ashridge's new MBA director, "Managers still need to be trained and developed. Smart companies are not holding back from that investment. When they come out of the recession, they are still going to have that succession in place. Using the stock market analogy, now is a good time to invest."

Other top schools are finding applications equally buoyant. Imperial College Management School reports a 25 per cent rise this year, for instance, while Henley has seen demand for its full-time course up 30 per cent.

Indeed, business schools can't really lose, says Peter Calladine, educational services manager at the Association of MBAs: "Applications are definitely up, which may seem perverse, but if it's a recession, you'll find that people do an MBA to avoid being downsized or to make good use of their redundancy payments, and if the economic climate is upbeat, they decide it's a good time to do one anyway. Either way the business schools seem to win."

So what exactly will an MBA do for you? You'll acquire the full range of skills needed to operate at a senior level of management, studying areas such as accountancy and finance, human resources, economics, marketing, organisational behaviour and information technology. You'll also improve your team and personal skills, and get a chance to refine your career through a wide choice of specialist options. Not to mention the invaluable opportunity to make contacts within your peer group and to plug into a wide network of alumni.

An MBA will also give you credibility, says Professor David Norburn, dean at Imperial: "I've gone through four recessions in my career, and I would say an MBA is becoming a union ticket for getting a good job. If you want to be a hot shot or make fast-track general management cadre, then you need an MBA – without it you won't even make the interview."

Colin Eden, director of the University of Strathclyde Graduate Business School, agrees: "You can argue that an MBA is a rite of passage – it doesn't necessarily open doors, but then not having one can certainly close them." But it's more about putting yourself in a position so that when you do get a new job or role, you get promoted quicker. "It's not the qualification per se that matters, but the fact that you can do your job better. That's the way an MBA will really enable you to stand out from the crowd."

The benefits may be considerable, but doing an MBA still involves a substantial commitment of time and often money. A one-year full-time MBA, taking into account living costs and accommodation, will set you back at least £20,000, although going to one of the top schools could end up costing you £30,000 in fees alone. And that's before you've factored in loss of earnings.

Generally, however, you get what you pay for. You may be able to get an MBA much cheaper at an unaccredited school, but you'll get a better financial return from a good one. "If you can only afford £7,000 to go to a lesser school, don't bother," says Eden. "Save up for longer and go to a decent one. It will be a better investment."

Taking a full-time course involves a considerable investment, but for those looking for a way to reposition themselves after redundancy, needing time to reflect on their next step, or wishing to make a major change in career direction, that will be money well spent. Bear in mind though the intensity of a one-year course – where money is no issue, the two-year option, available at some UK schools and standard in America, is worth considering, says Norburn. "If you've got a rich granny, the big advantage of doing an MBA over two years is you can have a life – it's very concentrated over a year, but then you're not out of work so long. Study for two years and you could face six figures of potential earning losses."

The alternative, and usually a much cheaper one for those who have no wish to part company with their employer, is to go the part-time route, usually over two years – around 80 per cent of students on part-time courses attract corporate sponsorship.

"There has been a slight drop in the number of British students on full-time courses, because increasingly many would rather wait a few years and do it part-time when their company will pay for it," says Calladine.

Part-time study over two or three years not only allows you to stay in employment, but also gives you the opportunity to put your newly acquired skills into practice from the moment you leave the classroom.

And as business schools compete to attract good students, the portfolio of part-time choices has increased dramatically. The market is sprouting ever more flexible ways for you to acquire those three letters after your name, particularly via distance learning – the University of Surrey's e-management school, for instance, recently launched a completely virtual MBA requiring no attendance at all.

"The number people enrolling on part-time and distance learning courses is inching up," says Calladine. "Now there's always an option for anybody, no matter how complex their working life."