Why European B-Schools Get More Apps Than The US
European business schools have been seeing an increase in demand recently.
According to the Graduate Management Admission Council’s (GMAC) 2017 Application Trends Survey Report, European business program are nearly twice as likely to report growth in international applicants compared with the U.S. Only 32% of U.S. programs report growing international application volumes in 2017 compared with 49% in 2016. Last year’s report found that 65% of European business schools saw greater application volume. Overall, 54% of U.S. business schools saw no increase in applications from 2015 to 2016.
Jonathan Moules, a writer at Financial Times, talks about why European business schools are seeing an increase in demand in a recent article.
“European schools appear to be enjoying a boom in demand at the expense of their peers in the US, with MBA students attracted both by the prospect of studying alongside a greater mix of nationalities and by shorter courses — in some cases half the standard two-year American degree,” Moules says.
GMAC reports that growth in the European MBA market is driven by foreign applications, with more than 90% of candidates this year coming from schools’ home countries.
A big reason why applicants are choosing European MBAs is the time spent out of the workplace. Compared with America’s two-year MBA, European MBAs tend to only take one year. Melinda Auli, who is from Chicago, chose to study at HEC Paris for her MBA over an American MBA. Auli tells Financial Times that the European MBA program offers the most ideal timeframe for her career.
“Sixteen months is the perfect amount of time,” she says. She adds that the 16 months was just enough time for her to get to know her peers, while not spending too much time out of the workplace.
Economic Uncertainty
While European MBAs can offer shorter time spent outside the workplace, they come with drawbacks as well. One of the biggest risks right now concerning European business schools is the European economy, according to Soumitra Dutta, board chair at the Association to Advance Collegiate Schools of Business.
“When the economy doesn’t do well, business schools suffer,” he tells Financial Times.
David Asch is director at the European Foundation for Management Development, an accreditation body. Asch tells Financial Times that European countries have been struggling to increase GDP in recent years. This, in turn, has affected education funding for research and faculty.
Political Disruption
On top of economic uncertainty, many European countries are facing political unrest as well. Examples include the UK’s decision to leave the EU and Catalonia’s independence from Spain. Yet, Asch tells Financial Times that local political unrest tends not to affect business schools.
“Business schools do not rely on the local economy in the same way that businesses do,” Asch says. “If they need extra funding, for instance, they can go to companies operating on a global, not a regional level, or to former students now working all over the world.”
If anything, financial changes, such as the pound sterling dropping against the euro and US dollar, have made courses cheaper for those studying at UK business schools. Applications to master’s degree courses at UK business schools this year saw a bump in demand. According to the Chartered Association of Business Schools, which represents UK MBA providers, the increase in applications is due to the exchange rate boost.
In Northern Italy, 90% of voters in the Lombardy and Veneto regions voted for greater autonomy from Rome. Gianmario Verona is rector at Milan’s SDA Bocconi School of Management. Verona tells Financial Times that there was concern about the economic effect on Bocconi, but the school has actually seen an increase in applicants. Verona says that a school’s reputation is more influential to applicants than local politics.
“The quality of the education you provide matters most,” he says. Verona adds that while second-tier US b-schools are experiencing declining demand, highly-ranked schools are still seeing increasing applications.
According to an application report by GMAC, smaller MBA programs in the U.S. have generally reported a decline in applications. “A strong economy and a disruptive political climate is likely contributing to the downward trend in application volumes among smaller U.S. programs this year.” explains Sangeet Chowfla, GMAC president and CEO, in a statement accompanying the report.
The biggest concern for European MBA students will be finding a job with high unemployment in European countries like France and Spain. As for Aulie, she tells Financial Times that she hopes to find work in London or Geneva, but she says she knows Brexit may influence the latter option. Yet, she adds that business school students are pragmatic and if working in Europe doesn’t work out, her options aren’t completely restricted. “I am a global citizen,” she says.
Sources: Financial Times, Graduate Management Admission Council, Graduate Management Admission Council, Poets & Quants
Getting Into The Private Equity Industry As An MBA
Private equity is the holy grail of industries for many MBAs. Getting into the industry requires some luck sometimes. Jounathan Moules, a writer for Financial Times, recently discussed how MBAs can break into venture capital (VC).
“Unlike equally lucrative careers in banking and consulting, an investor is intimately involved in the success of companies, which by dint of raising funds are bullish about their prospects,” Moules says. “A VC partner will take a seat on the board of portfolio companies. They also need good people skills as the job often involves being a mentor to founders and their teams.”
Private equity investing, which includes VC, may be a tough nut to crack, but, that hasn’t stopped MBAs from trying. According to recruitment data by Harvard Business School, private equity was the second highest employer of MBA graduates from HBS. 18% of its 2017 Class went into it, 10% more than the Class of 2013.
Jonathan Shepherd is corporate relations director in the careers and professional development team at HBS. Shepherd tells Financial Times that the increased interest in the private industry is a reflection of more students joining start-ups as a learning strategy before looking for VC jobs
“It helps to learn about what it takes to succeed, and then use that experience,” he says.
Few Are Hired Straight From Graduation
Unlike investment banks, VC firms don’t actively recruit business students on campus. Instead, students are expected to have work experience under their belt if they intend on breaking into the industry and advancing up the ranks.
David O’Toole is head of the technology and professional services executive search team at Harvey Nash — a global recruitment consultancy. O’Toole tells Financial Times that start-up work experience is crucial to getting into venture capital.
“It is not easy at all for outsiders to get hired,” O’Toole says. “The VC sector has a culture built on trust. So, the best thing to do is to build a record of working in start-ups.”
For those who do get hired straight from business school, it isn’t easy. Without experience, MBA grads are likely to start at the bottom of the ladder, according to Martin Mignot, a partner at Index Ventures — a venture capital firm based in Europe and San Francisco. “It is very much an apprenticeship model,” he tells Financial Times.
Start-Up Experience
Proximity to a school near the VC industry matters, but not as much as when compared to other industries. The University of California—Berkeley Haas School of Business is located just across the bay from San Francisco. Yet, according to Financial Times, only one of two of the hundreds of MBA grads from Berkeley’s Haas School of Business get hired by VC firms.
Abby Scott is assistant dean for MBA career management at Haas. Scott tells Financial Times that graduates tend to join the VC sector several years after graduation once they’ve gained relevant start-up experience.
For some, however, studying near the industry does pay off. Cambridge Judge MBA graduate Carol Cheung became an investment associate at Cambridge Innovation Capital after working for start-ups around the city. She is an advisor for four of the 22 companies that her company has invested in.
Cheung tells Financial Times that experience taught her how to identify start-ups with successful potential and start-ups with little potential.
“It is hard to find that diamond in the rough, but it can be even harder living with the decision not to back a company that went on to succeed,” she says.
Sources: Financial Times, Harvard Business School, The Wall Street Journal
What To Do When Waiting on MBA Admissions Decisions
Waiting on your MBA admissions decisions can be an anxiety-ridden ordeal. But it doesn’t have to be.
Stacy Blackman, contributor at US News and founder of Stacy Blackman Consulting, recently offered three ways applicants can stay productive while waiting on their decisions.
Stay Engaged With Your Target School And Its Programs
Just because you’ve submitted your application and are awaiting the results, that doesn’t mean you’re completely done. Blackman recommends that applicants take this time to continue immersing themselves in areas related to their target program.
“With a potential interview on the horizon, you’ll want to keep up with any big news announcements that you can reference later to demonstrate your interest and commitment to attending this particular institution, if admitted,” Blackman says.
To stay current, Blackman suggests that applicants follow the school and relevant professors on social media and to keep up to date on potential meet up events for prospective students. “The more specific details you can weave into a conversation with your interviewer, the more you will convince the admissions team of your fit with the school’s culture,” she says.
On top of connecting with other prospective students, Blackman urges applicants to reach out to current students or alumni who can provide interview insight and answer questions regarding the program.
Interview Prep
Business schools typically weigh applicants’ interview performance as heavily as their performance on the GMAT or GRE, according to Blackman. So, it’s important to take this time to focus on preparing for interviews.
Chad Losee is managing director of MBA admissions and financial aid at Harvard Business School. Losee tells US News that MBA interviews offer insight into how applicants think and what they are passionate about.
“We don’t feel that people need to come in with a life plan already mapped out, but we do like to get a sense for how people think about the decisions that they make,” Losee says.
Blackman says it’s a good idea for applicants to develop responses to common MBA interview questions first. Questions such as “what your strengths and weaknesses are, why you want an MBA now, why you applied to this program and what your post-MBA career goals are” are generally typical questions you can expect in every interview according to Blackman.
Blackman also advises applicants to prepare for the curveball questions as well. Harvard Business School applicants have previously reported interview questions such as “What is the most interesting conversation you’ve had this week?” and “Explain to me something you’re working on as if I were an 8-year-old.”
“While you can’t fully prepare for these types of surprise questions, it’s helpful to brainstorm stories and examples from your professional or personal life that support the general themes of leadership, overcoming challenges and your unique passions and ambitions,” Blackman says. “Come ready to discuss things you haven’t already shared in your application.”
Have A Plan B
Expectations can sometimes overshadow reality. It’s important to not let those expectations get carried away and to come ready with a backup plan. Blackman advises applicants to ask themselves the tough questions. Consider timeframe, waitlists, other schools, and even career shifts.
“Remembering that you have choices feels immensely reassuring,” Blackman says. “Having an acceptable backup plan in mind will go a long way toward helping you not only cope with any potential adverse outcomes but also thrive in spite of them.”
The Newest, Hottest Business School Course: Blockchain and Cryptocurrency
Cryptocurrency has been making headlines recently as people race to invest in the rapidly growing market.
In response to demand in interest, business schools across the world have started launching courses on cryptocurrency and blockchain. In 2014, NYU’s Stern School of Business became the first major university to have a course on cryptocurrencies and blockchain.
Martin Arnold, a banking editor at Financial Times, spoke to David Yermack, the professor of finance at NYU Stern who teaches the course on blockchain and cryptocurrencies.
“I attended some events in New York and there was huge demand for people trained in the compliance and tax aspects of cryptocurrencies and blockchain, so we set up the course in 2014, the first of its kind,” Yermack tells Financial Times. “Since then it has taken on a life of its own.”
What Potential Does Blockchain Have?
Blockchain is the “digitalized, decentralized, public ledger of all cryptocurrency transactions,” according to Investopedia. It encrypts data, in this case money, so it can be shared between parties.
“This protects data from fraud while instantly updating all parties concerned,” Arnold says. “Experts say the demand for expertise is coming from all sectors — from financial services to retail — and it is far outstripping supply.”
And demand for the industry is at an all-time high. Oliver Bussmann is former chief information officer at Swiss bank UBS who now advises blockchain start-ups. Bussmann tells Financial Times that the rapidly growing industry is garnering staggering amounts of interest and demand.
“It is a fast-moving topic with tokenomics and cryptocurrencies changing whole industries,” Bussmann says. “The more people can learn about it and what potential it has, the more understanding they will have of what financial services will look like in five years.”
Yermack tells Financial Times that blockchain technology “is really changing every industry.” He says its potential is “probably as important as the introduction of double-entry bookkeeping,” with “enormous student interest for this, [and] for the jobs it offers.”
Teaching cryptocurrency in business schools
At NYU Stern, the cryptocurrencies course started with only a “few dozen students.” This year, it has more than 100 students, with a waiting list, and an expected 300 students joining next year, according to Financial Times.
Yermack’s course is titled “Digital Currency, Blockchains, and the Future of the Financial Services Industry.” The spring syllabus describes the course this way:
“The goal of the course is to “equip the students to better understand the law and business of blockchain technology, both in its initial application in the digital currency Bitcoin, as well as in the applications currently being explored for a wide variety of uses and functions. The course is also intended to create a bridge between law students and business students that will enhance the quality of their communications after they enter into their careers.”
“Year-over-year we’ll change well over half the course material,” Yermack tells Financial Times. “It keeps you young to be reading half the night just to keep up with the latest innovations.”
NYU Stern is already developing plans to launch an undergraduate course in blockchain and cryptocurrencies to meet increasing demand, according to Financial Times. Yet, there’s a shortage of professors. “Our biggest challenge is finding enough people to teach the courses,” Yermack says.
At Stanford University, a bitcoin and cryptocurrency course was launched two years ago. But according to Financial Times, the course came to an end this year after losing key staff. Joseph Bonneau left Stanford to teach a blockchain course at NYU Courant. He predicts more universities will meet the demand for blockchain and cryptocurrency.
“I’m pretty sure that every university will have a blockchain course in five years,” he tells Financial Times. “More institutions would like to teach it now, but it’s a question of having a professor around to do it.”
At UC Berkeley, a student-run organization called Blockchain at Berkeley is tapping into the industry as well. The organization hosts events, workshops, and programs to promote blockchain.
At MIT, the MIT Bitcoin Club provides forums “where Bitcoin-related ideas, projects, programs, events, and businesses can be studied, discussed, and developed,” according to MIT Bitcoin Club’s website.
This year, the University of Edinburgh became the first major European university to offer a course in blockchain. Aggelos Kiayias is chair in cyber security and privacy and director of the blockchain technology laboratory at the University of Edinburgh. He tells Financial Times that there is big demand for blockchain expertise right now, particularly for computer science students. “It serves as a very nice use case that the students can apply in a lot of other domains, like cyber security.”
Growing Jobs Producer
Demand for blockchain expertise is surging. LinkedIn data requested by the Financial Times shows that there were more than 1,000 blockchain-related job postings this past summer, three times the amount just a year ago. In addition, Financial Times reports that almost 10,000 people on LinkedIn have listed blockchain as a skill.
Jerry Cuomo is IBM’s vice-president of blockchain technologies. Cuomo tells Financial Times that the revolutionary nature of blockchain technology is creating a talent bubble. He says the best blockchain engineers can “command a salary above $250,000.”
“It is on the high side of what a really talented consultant or software engineer can earn,” he says. “Demand is exceeding supply, so we are seeing shortages. It is up there with the cloud and artificial intelligence as a really hot area.”
Blockchain Education
In addition to meeting demand for blockchain expertise at the university front, a number of internet tutorials and courses have also sprouted.
Coursera is an education-focused tech company. The company has partnered with Princeton University in a “Bitcoin and Cryptocurrency Technologies” course.
B9lab is another company offering courses in blockchain for tech executives. The institution charges a fee for a 40-hour online course in blockchain spread over nine weeks, according to Financial Times.
Elias Haase is co-founder of B9lab. Haase tells Financial Times that roughly 40 people are expected to enroll in the course this year. Yet, he expects that demand and interest will continue to grow.
“There is definitely a disconnect between the willingness of companies to invest in talent and the amount of money being raised in the system, which will eventually have to be rectified,” Haase says.
Sources: Financial Times, Investopedia, New York University, Financial Times, Blockchain at Berkeley, MIT Bitcoin Club, Coursera
The post Why Europe’s B-Schools Get More Apps appeared first on Poets&Quants.
from Poets&Quants
via IFTTT
No comments:
Post a Comment