Kozminski University’s Grzegorz Mazurek On The Challenges Facing Business Education

These are difficult times for higher education leaders.

With declining birth rates and a shrinking college-age population, many business schools are facing an existential enrollment crisis. State and federal funding for higher education has been steadily declining, forcing many institutions to increase tuition or cut programs.

Rising tuition costs, combined with reduced financial aid, and increasing student debt, risk making business education a privilege for the few.  With corporations investing more in internal training, online certifications, and alternative education models, will traditional business schools be outcompeted by industry-led education?

Given the combined pressures of demographic decline, decreasing public funding, rising costs, and corporate alternatives, is the business school sector heading toward a financial crisis?

We posed these and other challenging questions to seven deans outside the U.S. market for their perspectives. For our second Q&A, we asked Grzegorz Mazurek, rector of Kozminski University in Poland, a triple crown-accredited business school. He is a full professor of management, specializing in digital transformation strategies, with a focus on the impact of digital technologies on the higher education sector. He also serves on the EFMD Board, the EQUIS Steering Committee, and the EFMD Advisory Board for the CEE region. Additionally, he is a member of the Innovation in Education Committee of the European University Association (EUA).

In this interview, he points out the restrictions on public business schools that hinder their ability to quickly adapt to change. “Public institutions often lack the flexibility and agility needed to respond to these challenges,” he says. “One concerning scenario is regulatory interference, where ministries, under pressure from public universities being afraid of competition, impose restrictions that limit the growth and adaptability of private institutions.”

P&Q: With declining birth rates and a shrinking college-age population, many business schools are facing an existential enrollment crisis. How is your institution adapting to this demographic shift, and do you foresee program closures, mergers, or a complete overhaul of the traditional MBA model?

Mazurek: While many business schools face enrollment challenges due to declining birth rates and a shrinking college-age population, Kozminski University has not observed such trends. In fact, our recruitment numbers continue to grow across undergraduate, postgraduate, MBA programs.

We see education not just as knowledge transfer but as an experience and a platform for professional and individual development. To remain competitive, we rapidly update our study programs in line with evolving market needs while expanding our offerings for the business and student community. This includes short courses, workshops, executive training, customized corporate programs, and in-depth management courses.

The demand for high-quality education is increasing, driven by global disruptions such as AI, digital transformation, ESG imperatives, and geopolitical shifts, creating new international market opportunities. The more uncertainty and innovation in the business landscape, the greater the need for education and managerial skill enhancement.

While we continue to see strong enrollment in traditional formats such as MBAs, EMBAs, and standard degree programs, we are also expanding our portfolio to include more flexible and diverse learning formats (e.g. microcredentials). The key challenge for higher education institutions (HEIs) and business schools is not just the content but the delivery methods and maintaining trust in a brand that guarantees valuable, impactful education.

P&Q: State and federal funding for higher education has been steadily declining, forcing many institutions to increase tuition or cut programs. Given the growing skepticism about the ROI of expensive business degrees, how sustainable is the current financial model of business schools?

Mazurek: Business schools must rethink their financial models. Selling a two-year MBA or a three-year bachelor’s degree is becoming akin to selling vinyl records or CDs in the music industry—still relevant, but no longer the only viable format. While these programs remain successful, business schools must diversify their revenue streams and service offerings.

Education can be positioned as a service under the umbrella of a reputable brand. Alternative revenue sources include research grants, consulting services, executive education, and corporate partnerships. The challenge lies in how ranking agencies and accreditation bodies assess quality beyond traditional degree programs.

In the long term, full-time two-year MBA and full-time master’s programs may become less sustainable. However, unique, high-quality programs will always find their audience.

The biggest risk lies with publicly funded institutions that have historically depended on government support. Unlike private business schools, which compete in the market and adjust accordingly, public institutions often lack the flexibility and agility needed to respond to these challenges. One concerning scenario is regulatory interference, where ministries, under pressure from public universities being afraid of competition, impose restrictions that limit the growth and adaptability of private institutions.

Business schools must rethink their financial models. Selling a two-year MBA or a three-year bachelor’s degree is becoming akin to selling vinyl records or CDs in the music industry—still relevant, but no longer the only viable format. While these programs remain successful, business schools must diversify their revenue streams and service offerings.

Education can be positioned as a service under the umbrella of a reputable brand. Alternative revenue sources include research grants, consulting services, executive education, and corporate partnerships. The challenge lies in how ranking agencies and accreditation bodies assess quality beyond traditional degree programs.

In the long term, full-time two-year MBA and full-time master’s programs may become less sustainable. However, unique, high-quality programs will always find their audience.

The biggest risk lies with publicly funded institutions that have historically depended on government support. Unlike private business schools, which compete in the market and adjust accordingly, public institutions often lack the flexibility and agility needed to respond to these challenges. One concerning scenario is regulatory interference, where ministries—under pressure from public universities being afraid of competition, impose restrictions that limit the growth and adaptability of private institutions.

P&Q: Rising tuition costs, combined with reduced financial aid, and increasing student debt, risk making business education a privilege for the few. How can business schools ensure accessibility and diversity in a sector where affordability is becoming a major barrier?

Mazurek: Business schools must not be accessible only to the financially privileged. There are three key solutions to ensuring affordability and diversity, even in prosperous times:

• Scholarships and Financial Aid: Institutions should allocate a portion of their budgets to scholarships for talented students who lack financial resources.
• Corporate Sponsorships: Schools can collaborate with companies to fund scholarships in exchange for early access to top talent, co-recruitment opportunities, or other forms of partnership.
• Endowment Funds and Asset Management: Universities with strong financial management can use investment returns to fund scholarships, ensuring long-term sustainability.

By implementing these mechanisms, business schools can attract a diverse student body and ensure that financial barriers do not exclude talented individuals from high-quality education. What creates the long-term value of a school is the talent who was there. Top quality candidates and, as a consequence, students are the best weapons against any turbulence.

P&Q: With corporations investing more in internal training, online certifications, and alternative education models, do you see a future where traditional business schools are outcompeted by industry-led education? How are you preparing for this shift?

Mazurek: I do not see industry-led education as a threat to top business schools. A reputable business school offers far more than just training—it provides a world-class education, an extensive professional network, international experience, cutting-edge research, and, most importantly, independence, autonomy.

A well-established business school brand opens doors to new opportunities for students and alumni. At Kozminski University, for example, we have become the first-choice partner for companies looking to enhance their managerial talent and expand their teams’ strategic thinking.

Why do companies prefer us over standard training providers? Because we offer prestige, top-tier faculty, networking opportunities, world-class customer service, access to research and resources, and a level of trust, brand reputation, and independence that no “education company” can match.

That said, collaboration with industry-led education is also beneficial. We actively integrate external resources, such as LinkedIn Learning and other digital platforms and sources, to enhance the learning experience for our students and clients. The key is not competition but the co-creation of value.

P&Q: Given the combined pressures of demographic decline, decreasing public funding, rising costs, and corporate alternatives, do you believe the business school sector is heading toward a financial crisis? If so, what bold structural reforms do you think are necessary to ensure its survival?

Mazurek: I do not share the pessimistic view that the business school sector is on the verge of a financial crisis. On the contrary, the need for education, skills, competencies, and professional networks is growing. The more uncertainty in the business environment, the greater the demand for lifelong learning and leadership development.

What is required is a genuine transformation of business schools. They must function like the very businesses they analyze and discuss. This means operating with agility, responding quickly to market needs, maintaining strong leadership, and fostering an adaptive, innovative culture.

Business schools must experiment with new formats, build strategic partnerships, and create value through networks rather than operating as isolated institutions. We are living in exciting times for business education!

However, regulatory bodies must avoid excessive interference that stifles innovation. If regulations become too restrictive, top universities will likely shift their focus away from traditional degree programs and instead dominate in less regulated, more flexible formats. This could lead to the rise of alternative education models outside the existing system.