MBA enrollments fall 6% globally as students shift towards specialised, skill-focused business degrees
For decades, a business degree followed a familiar path: undergraduate commerce or management, followed by an MBA that promised leadership roles and higher pay. That formula is now being quietly rewritten.Across leading business schools worldwide, student choices are shifting — not away from business education, but toward programs that feel more targeted, flexible, and closely tied to employability. According to the 2025 Enrollment Trends at AACSB Business Schools report by AACSB International, interest in management education remains strong, but students are becoming far more selective about what they study, how they study, and what outcomes they expect.For Indian students planning undergraduate or postgraduate business education — in India or abroad — these trends carry important career signals.
Applications are rising, commitments are slower
One of the clearest signals from global business schools is this: students are applying in large numbers, but enrolling more cautiously.The AACSB report, which draws on enrollment data from accredited business schools across regions, shows that while undergraduate and master’s applications have risen sharply over the past five years, actual enrollment growth has been much slower. This gap reflects a more deliberate decision-making process, with students comparing offers, evaluating costs, and prioritising career outcomes before committing.For students, this shift is empowering. Schools are competing harder for serious applicants, resulting in greater emphasis on scholarships, placements, internships, and industry exposure.
The MBA is no longer the default career move
One of the most notable findings of the AACSB 2025 report is the changing balance within postgraduate business education.Traditional MBA programmes are seeing a decline in enrollment globally, while specialised master’s degrees — in areas such as business analytics, finance, supply chain management, marketing, and fintech — are expanding. These programmes are attracting students who want faster, more targeted entry into specific roles.This does not signal the end of the MBA. Instead, the report suggests that the degree is increasingly positioned as a programme for professionals with prior work experience, rather than an automatic next step after graduation.
Skills, not titles, are driving hiring
The AACSB analysis highlights how business schools are redesigning curricula to match employer expectations. Programmes are placing greater focus on analytics, digital transformation, AI applications in business, sustainability, and problem-solving skills.For Indian students entering global job markets, this trend reinforces the value of programmes that offer technical depth, applied learning, and strong employer links — particularly at the postgraduate level.At the undergraduate stage, business degrees remain popular, but schools are increasingly integrating internships, live projects, and interdisciplinary learning to improve job readiness.
International education choices are becoming more strategic
The report also points to renewed growth in international student enrollment at the master’s level, particularly in specialised business programmes. However, student mobility is now shaped by practical considerations such as visa rules, post-study work options, and employment outcomes.As a result, students are evaluating destinations and institutions more carefully, focusing on return on investment rather than reputation alone. Shorter, skill-focused programmes with strong placement records are gaining preference.
Flexible learning is now a career asset
Another key trend identified in the AACSB 2025 report is the expansion of flexible delivery formats. While undergraduate programmes remain largely campus-based, postgraduate business education is seeing growth in online, blended, and part-time formats.These modes are increasingly accepted by employers, particularly when candidates demonstrate the ability to balance work and learning while applying academic concepts in real-world settings.
What students should take away
The data from AACSB International underscores a broader shift in how business education is perceived. There is no single pathway that guarantees career success. Instead, students need to align degrees with career stage, skill demand, and long-term goals.Specialised master’s degrees offer speed and clarity. MBAs remain valuable, but often later in a career. Undergraduate business education continues to be relevant when combined with practical exposure and digital skills.
The bigger picture
Business education is not losing relevance, rather, it is evolving. As highlighted in the Enrollment Trends at AACSB Business Schools: 2025 report by AACSB International, students are redefining value in education by prioritising employability, flexibility, and outcomes. For those planning careers in management and business, informed choices — rather than traditional assumptions — are becoming the real competitive advantage.
