BOOM PART 2: Worldwide B-School Enrollment Growth Puts The Pandemic In The Past

For the second time in less than a week, we have evidence of strength in the graduate business education market.

In its newly released report on master’s degree trends at business schools worldwide, the Association to Advance Collegiate Schools of Business finds not only resilience in business programs in recent years, but a boom in interest from applicants and strong growth in admission as well as a turnaround from a pandemic slump in enrollment. The findings agree with a report released October 23 by the Graduate Management Admission Council that applications to graduate B-school programs in 2024 increased an impressive 12% from 2023 to 2024.

“Enrollment in graduate business programs has not been immune to the complex changes in market forces in recent years,” says Lily Bi, president and CEO of the accrediting agency. “While our latest report reveals some of those fluctuations, the overall picture of master’s programs at AACSB schools is one of strength and adaptability.”

MBA PROGRAMS REPRESENT 30% OF ENROLLMENT AT B-SCHOOLS SINCE 2018-19

Applications among the more than 1,000 AACSB-accredited schools rose 48% from 2018-2019 to 2023-2024, averaging 7% growth annually, driven by specialist programs: 61% of schools globally reported increased enrollments in these programs. But apps really took off in the last cycle, growing 12.9% between 2022-2023 to 2023-2024 to top 1 million applicants for the first time ever (see table above). Compare that to the growth rate between 2021-2022 and 2022-2023: 7.6%.

AACSB found that acceptance rates have remained stable, and that the gap between acceptance rates and admissions yield is closing for schools in the Americas, while the Europe, Middle East, and Africa region has the lowest yield, and Asia Pacific schools show more selective admissions. Once again, offers grew at a substantially greater pace in the last cycle, up 13% from 2022-2023 to 2023-2024 compared to 5.8% between 2021-2022 and 2022-2023.

Total master’s enrollment, meanwhile, has grown 13% over the past six years, with more than half of AACSB schools reporting gains. Specialist programs account for about 50% of total enrollment, while MBA programs represent around 30%. From 2022-2023 to 2023-2024 enrollment grew 2.5%, which seems low compared to app and offer growth; however, from 2021-2022 to 2022-2023 enrollment actually shrank for the first time (-2.4%). The most recent cycle rebounded overall enrollment past its 2021-2022 peak.

EMPLOYERS ‘RECOGNIZE THE IMPORTANCE OF UPSKILLING EMPLOYEES’

Why the sudden growth? It’s driven “by the rapid development of technology, life-long learning and professionals eager to stay ahead of the learning curve,” Bi tells Poets&Quants. “Master’s programs, especially specialized master’s programs, provide the relevant continuing education that business leaders need to grow and evolve with the changing landscape of our economy.

“Learners want to avoid economic uncertainty and prepare for career advancement. Notable surges in graduate enrollment often occur during times of economic downturns, as individuals seek advanced degrees to improve employability. For instance, significant enrollment increases were observed in the early 2000s and around 2008-2010 during the global financial crisis. As businesses become more complex, there’s a growing demand for leaders equipped with advanced strategic and managerial competencies.”

Schools are meeting that demand by “increasingly offering flexible formats, with MBAs shifting online and specialist programs favoring in-person,” Bi continues. “These trends reflect a dynamic landscape as business schools respond to global changes, shifting demographics, and demand for flexible and specialized learning options. The data in our report reflects confidence in higher education and the demand for a graduate degree.

“Employers around the globe recognize the importance of upskilling employees to acquire the skills necessary to remain competitive. AACSB will continue to provide learning opportunities for our schools and elevate their impact on society.”

70% OF SPECIALIST PROGRAMS PREFER IN-PERSON TO VIRTUAL LEARNING

More key findings:

• In 2023-2024, over 660,000 students were enrolled in master’s programs at AACSB-accredited schools. In a controlled comparison, master’s enrollment has grown by 30% over the past decade. Despite decreased international student enrollment in 2020-21, enrollment levels have now surpassed pre-pandemic levels and are the highest in the Asia Pacific region, followed by EMEA and then the Americas.
• Master’s specialist programs show gender parity, with many enrolling more women than men, while MBA programs maintain around 40% female enrollment. International student enrollment has increased since the pandemic, and white student representation in U.S. master’s programs has declined from 62% to 57% since 2018-2019.
• Business schools are expanding flexible learning options, including digital, hybrid, and part-time formats. While MBA programs are shifting toward online and hybrid delivery, 70% of specialist program students still prefer in-person learning. Full-time enrollment remains dominant, accounting for 66% to 67% of total enrollment across all programs.

On that last point, Lily Bi says, “This era is incredibly exciting and will allow for innovation in program design and delivery.

“Flexibility allows institutions to continue meeting the needs of learners, regardless of their circumstances. AACSB-accredited schools innovate and adapt their delivery formats, creating a competitive degree path that appeals to students.

“Full-time programs continue to demonstrate staying power in the marketplace because students recognize the return on investment an MBA can bring to their careers when striving for advancement in their fields. Full-time MBA programs offer an extensive curriculum that covers a wide range of business disciplines, including finance, marketing, operations, strategy, and leadership. This holistic approach equips students with a broad skill set that is difficult to replicate in shorter programs or micro-credential courses. When it comes to career switches, full-time MBA programs offer a structured pathway to transition industries or functions. This resilience reflects the continued benefits for well-rounded, deeply developed leaders who are equipped to take on complex, strategic roles in a dynamic global market.”

WHAT DOES THE FUTURE HOLD?

In the next five years, Bi continues, “I am hoping all business schools rethink and transform their MBA programs. The AACSB’s Graduate Enrollment Trend Report shows that MBA programs have seen a steady decline in their share of applications, falling from 30% in 2018-19 to just 24% in 2023-24, while a major growth in specialist master’s programs. MBA programs are facing challenges, particularly in some regions and for traditional full-time, two-year formats. Enrollment in traditional two-year, full-time MBA programs has declined in recent years, especially in the U.S. and Europe.

“Many prospective students now favor shorter, more flexible programs that align with their career goals and life commitments. Having an MBA degree myself, I am a strong believer in the program’s benefits. All business schools should adapt their MBA programs based on their specific mission and circumstances to ensure they remain relevant, attractive, and responsive to the evolving needs of students and the business landscape.”

Read more about AACSB-accredited schools’ application, admission and enrollment trends, and how B-schools are responding to challenges by expanding into new markets, developing specialized programs, and emphasizing lifelong learning, here.

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