The number of students thinking about doing an MBA in another country has halved over the last 12 months as countries look to restrict the entry of international students to help manage the housing crises that has impacted many economies in recent years.
The latest Tomorrow’s MBA study from CarringtonCrisp, in association with EFMD, showed less than 1 in 5 respondents (19%) expressed a preference for studying overseas compared to 39% in the previous edition of the study in 2024.
The results are based on the survey of 1,908 prospective MBA students across 37 countries.
Study author Andrew Crisp said increasingly restrictive visa policies in several major MBA markets, geopolitical instability, and the improving quality of domestic and online MBA programs were combining to put some students off studying internationally.
“It is an interesting and challenging time for MBAs. Geopolitical developments and other factors are affecting international MBA student movements, the pace of AI development is changing how and what is taught on MBAs, and there is a growing array of MBA alternatives.
“Despite this, the MBA is still a flagship qualification, and the onus is on business schools to keep up with the pace of change and deliver programs that prospective students are looking for.”
International student numbers in Australia are currently being reduced under a ministerial direction while the government tries to get legislation to cap international student numbers passed through Parliament.
The cap, which aimed to drive down enrolments to a maximum of 270,000 by setting limits for individual institutions, was blocked by the Liberals and the Greens in the final sitting days of 2024.
Under the ministerial directive, visa processing for international students will be slowed once applications near targets set for each university.
The Business Council says the Government’s decision to place caps on the number of international students permitted at each university will damage the economy and deliver long-lasting economic harm to Australia’s fourth largest export sector.
BCA Chief Executive Bran Black said the decision to apply arbitrary caps would limit growth of a major sector at a time when the economy is stalling.
“These caps will damage the economy, reduce economic growth and create long lasting negative impacts to our fourth largest export,” Mr Black said.
“International students are worth $48 billion to our economy and in March 2024 accounted for almost a quarter of GDP growth — so it seems entirely counterproductive to stymie that growth when we face economic headwinds.”
“I’m disappointed the Government is intent upon implementing such a blunt mechanism that will dent our capacity to drive research and result in course cancellations for domestic students.”
Other countries are also heading down the path of restricting international studnet numbers.
Canada recently implemented new restrictions for international students, including work limits, study permit approvals for changing schools, and demonstrating they have adequate cost of living expenses.
In-mid-2024, UK business schools reported significant declines in international student applications after everal changes to visa requirements restructuring international students from bringing their families with them to the UK while they study
In total, 70% of representatives from the 53 institutions participating in the Chartered Association of Business Schools (CABS) report said they’d experienced a ‘significant’ decrease in year-on-year applications to postgraduate programs from candidates outside of the European Union. Overall, 90% of surveyed deans said that non-EU applications had dropped.
The CarringtonCrisp report also found there was increased interest in specialist MBAs, driven by the importance of AI and related technologies.
Nearly twice as many respondents (41%) expressed a preference for specialist programmes over the traditional generalist MBA (23%). Not surprisingly, AI (43%) is the most valued technology related subject in an MBA followed by Data Analytics and Decision Making (33%), Technology Management (31%), Digital Marketing (29%) and Cybersecurity (27%).
The primary motivation in wanting to study for an MBA is focused on career outcomes with a third (33%) of respondents indicating that an MBA/EMBA ‘is essential for me to advance my career as I desire.’
Conversely, money is the main issue in not undertaking an MBA, with the top three reasons as ‘the fees being too much’ (32%), an MBA not offering a good return on investment’ (30%), and ‘receiving too little or no financial aid/scholarships’ (25%).
One in five (20%) respondents are open to alternatives to an MBA or EMBA, with a Professional Qualification (30%), Masters (29%), and Certificate/Diploma (21%) being the most popular. Andrew Crisp comments: “Students are open to other forms of learning that they perceive as offering value for money and flexibility. Business schools need to clearly articulate the distinct value proposition that an MBA offers over alternatives.”
The study also reveals a shift back towards traditional, full-time, on-campus MBA programmes, with a third (33%) expressing a preference for this way of learning. In comparison, in the previous study, approximately two-thirds of respondents (66%) favoured blended or hybrid study formats.
This shift may reflect a renewed desire for face-to-face interaction, immersive classroom experiences, and enhanced networking opportunities—elements that are often more easily achieved in an on-campus setting.
