• Traditional full-time MBA programmes widely report a growth in applications in GMAC’s latest Application Trends Survey
• AACSB International’s Enrolment Trends Report shows overall applications to master’s programmes have surged in the last six years
• However, challenges persist as increased global competition highlights the fragility of international student pipelines

MBAs have been a staple of business education since the sector’s infancy. First introduced at Harvard University Graduate School of Administration (now Harvard Business School) in 1908, the two-year, full-time MBA taught management principles using a case study method inspired by the way students discussed court cases at Harvard Law School.

This style of teaching filled a niche in the market for graduates who could approach business problems with an analytical mindset.

Over the next 40 years, MBA programmes continued to grow in popularity, being adopted at business schools across the US and Canada. They made the leap to Europe in 1957, with INSEAD’s offering being first out the gate. But this programme offered students an alternative learning structure to what had been popular in the US, condensing the MBA into a one-year structure for the first time.

This shorter, more intense programme format sparked a trend which remains common amongst European schools today and continues to be popular. More than two-thirds of institutions reported a growth in application numbers in the most recent Application Trends Survey provided by the Graduate Management Admissions Council (GMAC).

However, there seems to be a shift in student preferences at play. Further data gathered by GMAC suggests something of a renaissance may be underway, with 80 percent of full-time two-year MBA programmes also reporting a growth in applications in the 2024 cycle.

In all, this is the largest share of full-time two-year and one-year MBA programmes to report application growth in the last decade.

Boom time for specialist master’s programmes

And it’s not just MBAs experiencing a surge. Global accrediting body AACSB International observes a similar trend. It’s 2024 Master’s Enrolment Trends Report, finds that demand for graduate business education at AACSB-accredited institutions remains strong.

Over the past six years, master’s programmes have experienced a steady rise in applicants overall, with an annual growth rate of seven percent, resulting in an impressive total increase of 48 percent in applications.

The report shows that as applications rose, so too did offers by institutions. Despite a dip in the 2021-2022 academic year, offers have kept pace with demand, rising by seven percent annually.

Much of this growth was driven by a surge in applications to specialist master’s programmes, in turn driven by increasing demand from industry for those with specialised skills in fields such as; technology, analytics, sustainability, and niche interests. These types of programmes account for around 60 percent of all applications to AACSB-accredited business schools over the last six years, peaking at 64 percent during the 2023-2024 cycle, according to the report.

Meanwhile, MBA programmes are left with a smaller share of the overall applications, shrinking from 30 percent in 2018-19 to just 24 percent in 2023-24.

The debate amongst applicants as to whether to opt for a specialised master’s programme over an MBA is one that has gained traction in recent years as the perceived value of the former has grown. The opportunity to gain desirable qualifications earlier in a career providing an opportunity to boost employment potential and stand out in the talent pool, the ability to tailor studies to match the nuances of the modern working world and, often, a smaller price tag all compelling reasons to choose master’s study.

In other words, whilst the MBA might still reign as the gold standard of business, it may continue to be overshadowed by a boom time for specialist master’s programmes.

Enrolment challenges

Yet, while applications and offers soar, the AACSB report finds admissions yield for master’s programmes has steadily declined, with fewer admitted students ultimately choosing to enrol.

This trend is consistent across all types of master’s programmes – but specialist master’s experience the steepest drop, from 45 percent of admitted students enrolling in 2018-2019 to only 34 percent in 2023-2024.

Why is this happening?

One possible reason is that students are applying to multiple programmes to give themselves more choice when it comes to deciding which one to enrol on when the offers come in. This rationale may explain why specialist master’s programmes in particular have been so significantly impacted: their highly-focused nature encourages students to compare and apply to different business schools and programmes with similar focuses. Their final decision could be based on the specifics of the programme, but factors such as location, institutional reputation, or career placement opportunities are also likely to come into play.

However, it’s important to note that MBAs have also seen a sizeable decrease in admissions yield, from 61 percent in 2018-2019 to 52 percent in 2023-2024, so this trend is far from limited to just specialist master’s programmes.

Navigating Natural Tides

What picture does this paint for future enrolment trends in graduate business education? The short answer is a complex one.

The global business landscape continues to change rapidly, and the AACSB report notes that such evolutions make applying broad generalisations difficult. There are a number of other factors and trends at play impacting applicant data. For example, while some regions have experienced declining enrolment due to lower birth rates, others have shown resilience. In some cases, targeted government policies or favourable economic conditions have helped to encourage people to pursue qualifications in business.

GMAC finds the market for graduate business education is also increasingly being shaped by international mobility.

While China and India remain top suppliers of international talent to schools globally, and Nigeria continues to provide a large amount of international talent to schools in North America more applicants are choosing to study domestically. This boost in the popularity of programmes in countries such as India where, in correlation, the quality of institutions and the programmes on offer seem to be on a continuing upward trajectory, is providing learners domestically and internationally with an increasingly competitive option.

For countries like Canada and the UK, which have both seen a substantial drop in applications from non-domestic students, such shifts present a challenges. As business schools plan for the future, they must consider how such changes to domestic and international pipelines might affect their ability to fill classrooms with a diverse mix of perspectives and backgrounds.

The growth in global competition, and shifting student preferences highlights to institutions the fragility of international student pipelines, and offers schools an important reminder. that if the MBA is indeed about to enter a renaissance, to seek to embrace the change, establish a wider set of values and, much like the cultural Renaissance, remember that this is unlikely to be a universal or permanent affair.

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