What Is a Business Analyst? 2026 Career Guide | Coursera

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Business analysts help maximize a business's effectiveness through data-driven decisions. Learn about what business analysts do and what it takes to become one.
A business analyst studies data to develop business insights and recommend changes to organizations in order to increase efficiency and reduce costs.
A business analyst uses SQL to analyze big data, compiles charts for data visualization, creates financial models to support business decisions, and identifies an organization’s technical needs.
Business analyst jobs are available across a variety of industries, including finance, health care, education, information technology (IT), consulting, e-commerce, government, and manufacturing.
The qualifications you need to be a business analyst include a bachelor’s degree and a related certification, as well as certain skills, such as business acumen, communication, and data analysis.
Discover more about what business analysts do and what it takes to get a job in this impactful field. If you’re ready to begin a career as a business analyst, consider enrolling in the Microsoft Business Analyst Professional Certificate. In as little as three months, you can learn about data analysis, data modeling, stakeholder management, Microsoft Power BI, and more.
Business analysis is the process of gathering and analyzing data to make recommendations that help an organization achieve its business goals. As a result, the primary goal of business analysis is to guide the decision-making process within an organization, offering suggestions for changes that can improve outcomes and overcome obstacles or shortfalls. Using their analytical skills, business professionals in the field make plans and recommendations to help increase value for both internal and external stakeholders.
A defining characteristic of business analysis is that it’s not just about making high-level recommendations. It also involves designing technical and concrete action steps to make those recommendations a reality.
Business analysts use data to develop business insights and recommend changes to organizations. As businesses seek to increase efficiency and reduce costs, business analytics has become an essential part of their operations. Business analysts can identify issues in virtually any part of an organization, including IT processes, organizational structures, or staff development.
Business analysts identify areas where a company can increase its efficiency and strengthen business processes. They often work closely with others throughout the business hierarchy to communicate their findings and help implement changes.
Tasks and duties can include:
Identifying and prioritizing the organization's functional and technical needs and requirements
Using SQL and Excel to analyze large data sets
Compiling charts, tables, and other elements of data visualization
Creating financial models to support business decisions
Understanding business strategies, goals, and requirements
Planning enterprise architecture (the structure of a business)
Forecasting, budgeting, and performing both variance analysis and financial analysis
The median total pay for business analysts in the United States is $108,000, according to Glassdoor [1]. This figure includes base salary and additional pay, which may represent profit-sharing, commissions, bonuses, or other compensation. However, your earning potential will vary depending on the company, location, and amount of experience you have.
The demand for business analysts has increased in recent years and is projected to continue. The US Bureau of Labor Statistics (BLS) projects faster-than-average job growth between 2025 and 2034 for similar roles, such as management analyst, which is poised to grow by 10 percent in the next decade [2].
Learn more: IT Business Analyst: Duties, Salary, and How to Become One
Business analysts are in demand across industries, including finance, health care, education, IT, consulting, e-commerce, government, and manufacturing. As a business analyst, you'll have the opportunity to support your organization's success through data-driven insights. In business analytics, every day brings new challenges and new ways to put your skills into practice. If you enjoy collaborating, asking questions, solving problems, doing impactful work, and bridging business and technology, a career as a business analyst could be a good fit.
Both data analysts and business analysts support data-driven decisions in their companies. Business analysts tend to focus more on recommending solutions for business needs, while data analysts work more closely with the data itself.
Becoming a business analyst often requires gaining skills and credentials applicable to the work and the industry you're interested in. Coursework, certifications, or degrees can each aid your path to a job as a business analyst.
Many employers like to see at least a bachelor’s degree on your resume, though some may prefer candidates with a master’s degree, especially as you seek to advance. According to Zippia, 70.5 percent of business analysts hold a bachelor's degree [3]. Common majors include business administration and data science.
Here are some skills you’ll typically want to have as a business analyst.
Business acumen: A solid understanding of finance, accounting, and business principles will help you surface what operational issues exist and how best to address them.
Communication: A business analyst is often expected to communicate with several different players within an organization, including upper management and other teams. Being able to present your ideas clearly and convincingly, both verbally and in writing, will be a large asset as a business analyst.
Data analysis: Gathering, tracking, and analyzing performance metrics will be central to a business analysis role. Having a good grasp of data analysis and visualization tools like Tableau, Excel, and BI tools can be useful. Some know