AACSB International has released its 2025 State of Business Education Report, presenting data and analysis on global developments affecting the business education sector. The report is based on surveys, institutional data and expert perspectives, and outlines five primary areas of transformation.
The report indicates a growing focus among business schools on financial resilience, shifts in student enrolment patterns, changing faculty responsibilities, evolving employer expectations and the increasing complexity of academic leadership.
Drawing on insights from nearly 900 business education leaders across 83 countries and territories, the report also integrates research from organisations including the Graduate Management Admission Council, McKinsey & Company and the Organisation for Economic Co-operation and Development.
Lily Bi, president and CEO of AACSB, said, “AACSB’s 2025 State of Business Education Report serves as a valuable reference point for business schools and their many internal and external stakeholders. By highlighting major developments occurring across our industry—backed by AACSB’s comprehensive data and enriched by the insights and expertise from members throughout our global network—this report captures a pivotal moment in business education.”
Financial Viability and Revenue Diversification
Financial concerns are at the forefront for business school leaders, with more than 75 percent identifying financial viability as a top challenge. Institutions are addressing this by pursuing alternative revenue streams, strengthening industry partnerships and responding to shifts in public funding and tuition frameworks.
This focus on financial adaptability comes as schools work to balance cost pressures with growing demand for new modes of learning, faculty development and infrastructure upgrades. Strategic financial planning is also playing a greater role in long-term institutional resilience.
Changing Enrolment Patterns and Regional Variation
The report notes a divergence in enrolment trends across programme levels and regions. While undergraduate and master’s applications are increasing globally, some areas are reporting a decline in MBA enrolment.
International enrolment at the undergraduate level has dropped by 26 percent in the Americas but has increased significantly in Europe, the Middle East and Africa. At the master’s level, international student numbers have grown in all regions, with Asia Pacific and EMEA institutions enrolling higher proportions of international students.
These variations suggest differing regional responses to demographic shifts, visa policy changes and post-pandemic educational preferences.
Workforce Readiness and Faculty Adaptation
The findings reinforce the importance of balancing technical and human-centred skills in business education. Employers and educators agree that graduates must develop capabilities in communication, resilience, ethical leadership and AI. Practical, hands-on learning experiences are seen as necessary complements to classroom instruction.
Business schools are also adjusting faculty roles to meet new expectations. Academic staff are being asked to deliver research with measurable impact, adopt innovative teaching methods and expand collaboration with industry. These demands are leading institutions to review faculty support systems and reward structures, particularly in areas experiencing talent shortages.
Institutional Leadership and Strategic Decision-Making
Deans and academic leaders are facing complex decision-making environments. The report notes the need to manage short-term financial priorities while aligning with long-term strategic goals. Leaders are also being called on to build stronger global partnerships and navigate increasingly complex regulatory requirements.
The report reflects that leadership success now depends on the ability to integrate local relevance with global reach, maintain operational flexibility and respond to rapid changes in the higher education landscape.
