Business schools around the world are at a turning point. New reports released this week by the Association to Advance Collegiate Schools of Business paint a picture of institutions rethinking their models, programs, and priorities as they respond to a rapidly changing higher education landscape.
The 2025 State of Business Education and newly updated Business School Data Guide — the latter released for the first time since 2021 — offer a comprehensive look at the trends shaping the industry, as well as the many challenges ahead.
“AACSB’s 2025 State of Business Education Report serves as a valuable reference point for business schools and their many internal and external stakeholders,” says Lily Bi, president and CEO of AACSB. “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.”
Source: AACSB
WHAT COMPANIES WANT — AND HOW B-SCHOOLS ARE RESPONDING
Among the top concerns: financial sustainability. More than 75% of deans surveyed flagged financial models as having a “high or critical” impact on their schools’ futures. As traditional revenue sources come under strain — particularly government funding and tuition — schools are diversifying their income with new programs, lifelong learning initiatives, and tighter partnerships with industry.
Enrollment trends reveal a complex picture. Undergraduate and specialized master’s applications are growing globally, but MBA enrollments are slipping in some regions. The Americas saw a 26% drop in international undergraduate enrollment, while Europe, the Middle East, and Africa saw gains. These fluctuations, AACSB notes, are driven by shifting student preferences, regional instability, and evolving immigration policies.
The reports also reflect changing expectations from employers. Companies are looking for business graduates with both technical fluency and “human-centered” skills — critical thinking, communication, resilience, and ethical leadership among them. In response, schools are embedding microcredentials, experiential learning, and cross-disciplinary collaboration into their curricula to better prepare students for complex, tech-driven work environments.
Source: AACSB
A CALL TO ACTION
Faculty and leadership are adapting too. Professors are being asked to do more — conduct impactful research, teach innovatively, and engage with industry.
Meanwhile, deans face increasing pressure to balance strategic planning, financial stewardship, and global collaboration amid unprecedented change. The AACSB data points to both the burdens and opportunities of this evolving role.
Together, the twin reports paint a portrait of an industry in transformation. By presenting up-to-date benchmarking data alongside reflections from institutional leaders, AACSB aims to equip business schools with the tools — and the urgency — to respond to the moment. As Bi notes, the 2025 reports are not just diagnostics — they’re a call to action.
See the AACSB report here and the Data Guide here.
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