Data points Tim Banerjee Dhoul looks beneath the surface of a key finding from upcoming AMBA & BGA research to examine the context behind changing student expectations and demand, as well as what business schools are doing to rise to the challenge
of respondents (54 per cent) admitted to experiencing challenges due to a lack of demand from prospective students. Leaders link declining demand to a range of factors encompassing all these challenges, including the costs of tuition (66 per cent), increased competition from within the higher education industry (60 per cent), increased competition from outside the higher education industry (47 per cent) and changing employer preferences (40 per cent). Some 43 per cent also highlight the risk of a perceived lack of return on investment. There is further concern from 72 per cent of respondents that the perceived value of multi-year degrees, including the MBA, has diminished among prospective students. Moreover, when asked if students are looking at alternative credentials, such as industry certifications and short-term courses, instead of traditional business degrees, 23 per cent strongly agreed and 49 per cent agreed.
lmost all business school leaders acknowledge that there has been a shift in the
Of course, there is a link between these two challenges, with technological change an important influencer of the future skills deemed essential to a future manager’s toolkit. There is some trepidation among leaders here, with a majority of AMBA & BGA respondents (63 per cent) saying they are “somewhat prepared” to train students for the workforce demands created by AI, automation and other disruptive technologies. Only six per cent say they are “very prepared”, while 14 per cent say they are “not very prepared” or “not prepared at all”. Increased competition is another central concern, appearing in the top three current challenges for 41 per cent of school leaders surveyed. The most commonly cited challenge of all, however, relates to the global climate of economic uncertainty, a top‑three challenge for 57 per cent of those polled by AMBA & BGA. In this context, it is perhaps not surprising that in another survey section, more than half
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expectations of students. When asked if prospective students’ expectations over the business school experience have changed in the past five years, 85 per cent said “yes”. Of the remaining 15 per cent, only six per cent said “no”, with nine per cent unsure either way. The question was one of a series posed around changing market dynamics and demand in a new AMBA & BGA report. Changing expectations are driven, in part, by what employers want to see from their graduate hires and the new possibilities presented by technology. Responding to these developments drives two of the leading considerations for schools right now. Among 105 leaders surveyed, 45 per cent listed “changing market demand in terms of future skills needed” and 34 per cent cited “technological disruption” in their top three challenges impacting their institution.
10 Business Impact • ISSUE 3 • 2025
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