brexit and graduate management education in the united kingdom · gmac™ exam, for entrance into...

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Brexit and Graduate Management Education in the United Kingdom

March 2019

Brexit and Graduate Management Education in the United Kingdom is a product of the Graduate Management Admission Council (GMAC), a global, nonprofit association of 223 leading graduate business schools. Founded in 1953, we are actively committed to advancing the art and science of admissions by convening and representing the industry and offering best-in-class products and services for schools and students. GMAC owns and administers the Graduate Management Admission Test™ (GMAT™) exam, used by more than 7,000 graduate programs worldwide. Other GMAC assessments include the NMAT by GMAC™ exam, for entrance into graduate management programs in India and South Africa, and the Executive Assessment, specifically designed for Executive MBA programs around the world. The Council is based in the United States with offices in theUnited Kingdom, India, and Hong Kong.

Contents


Executive Summary

Brexit Wave Surveys

GMAT™ Score Sending

Application Trends Survey

Contributors and Contact Information

4

5

15

22

3

27

Executive Summary

Despite fears, UK business schools have largely seen strong

international demand since the 2016 Brexit vote


Since the 2016 vote to leave the European Union, business schools in the

United Kingdom (UK) have continued to experience strong demand from

non-UK citizens despite fears that Brexit would repel international

business school candidates.

In the immediate aftermath of the vote, it was unclear what the impact

would be on the international flow of students to UK programs, which are

heavily reliant on enrollees from other countries. Brexit, it’s been feared,

will restrict or complicate the student visa process and dampen

international candidates’ post-graduation job prospects in the UK, both

because of possible changes to work visa policies and jobs leaving the UK.

The Graduate Management Admission Council (GMAC) has been tracking

Graduate Management Admission Test™ (GMAT™) examinee interest in

studying in the UK since the Brexit vote with periodic surveys of non-UK

citizens who sent a GMAT score report to a UK business school program.

Most recently, survey findings from December 2018 show that 54 percent

of respondents overall say Brexit has no impact on their decision to study

in the UK, up from 46 percent in December 2016. Likely bolstered by a

falling pound and reduced interest in the United States as a study

destination over the same period, there has been an increase in candidates’

selecting the UK as their first-choice country for their business school

experience.

The survey findings show that candidate consideration of the UK as a

study destination is driven by the reputation of the UK educational system,

candidates’ desire to develop an international network, and candidates’

desire to improve their chances of having an international career. Their

ultimate selection of a study destination is primarily influenced by a desire

to study at a specific program or school in the location.

The survey findings also show, however, that there is some hesitancy

among candidates amidst the uncertainty of the looming exit from the EU.

While overall most respondents to the December 2018 survey say Brexit

has no impact on their decision making, about half of non-UK Europeans

say they are less likely to decide to study in the UK because of Brexit (51%).

Most non-UK candidates overall consider Brexit a detriment to the

availability of student and work visas in the UK and over time candidates’

perception of the impact of Brexit on the cost of education and living in the

UK have become more negative.

Despite this, GMAT score sending behavior shows that UK programs have

remained just as popular a choice for business school as before the 2016

Brexit vote. In fact, the share of GMAT score reports sent to UK programs

has increased slightly since 2016 and is stable or up across world regions of

citizenship. The increase is particularly strong among examinees from

Asia-Pacific countries and examinees with a total score of 600 and above.

Findings from GMAC’s annual Application Trends Survey also shows

continued strong international demand for UK programs, as 71 percent

report year-on-year international application volume growth in 2018.

With the continued uncertainty about how Brexit will proceed, it’s not

clear how international student mobility will be affected should the actual

departure from the EU take place. As a global association of leading

graduate business schools, GMAC supports the free flow of people and

ideas and is committed to the belief that candidates should be able to study

at the program and location of their choice based on their best fit. GMAC

plans to continue to conduct survey research on this topic as events unfold.

4

Brexit Wave Surveys

GMAC has been tracking GMAT examinee interest in studying in the United Kingdom since the Brexit vote with periodic survey waves of non-UK citizens that had recently sent a GMAT score report to a UK business school program.

The first survey wave took place in December 2016 (1,291 responses, 12.4% response rate), the second took place in March and April 2017 (442 responses, 12.9% response rate), and the third took place in December 2018 (532 responses, 11.9% response rate).

5


Brexit Wave Surveys

The share of candidates who say Brexit has no influence on

their decision making has increased

14% 12% 10%

11% 13%10%

20% 20%

21%

46% 48%54%

5% 3% 4%1% 1% 1%2% 2% 2%

0%

25%

50%

75%

100%

Wave 1 (Dec 2016) Wave 2 (Mar-Apr 2017) Wave 3 (Dec 2018)

Perc

enta

ge o

f Resp

ondents

Wave Survey

More likely (7)

(6)

(5)

No influence (4)

(3)

(2)

Less likely (1)

How has the United Kingdom’s decision to leave the European Union (Brexit) influenced your decision to study in the United Kingdom?

6

How has the United Kingdom’s decision to leave the European Union (Brexit) influenced your decision to study in the United Kingdom?

Brexit Wave Surveys

The biggest shift toward “no influence” has been among

citizens of Asia-Pacific countries

By World Region of Citizenship

40% 38% 37%

50% 53% 57%

11% 9% 6%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

Americas

48% 45%38%

40% 47%56%

11% 8% 7%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

Asia-Pacific

43%55% 51%

52%

43%42%

4% 2%7%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

Europe (non-UK)

More likely

No influence

Less likely


Perc

enta

ge o

f Resp

ondents

Wave Survey

7


Brexit Wave Surveys

The share of candidates who say the UK is their first-choice

destination has increased, particularly among APAC citizens

Is the United Kingdom your first-choice study destination?

41%

35%

45%43%

49% 48% 47% 47%

55%

50%

64%

52%

0%

25%

50%

75%

Overall Americas Asia-Pacific Europe (non-UK)

Perc

enta

ge R

esp

ondin

g “

Yes”

World Region of Citizenship

Wave 1 (Dec 2016) Wave 2 (Mar-Apr 2017) Wave 3 (Dec 2018)

8

Brexit Wave Surveys

Nearly 2 in 3 say a specific program or school is the most

important factor influencing their study destination decision

Please rank order the following factors influencing your study destination decision from most important (6) to least important (1).


42%

45%

5%

4%

2%

2%

33%

31%

14%

13%

7%

3%

12%

12%

30%

33%

10%

4%

7%

7%

30%

24%

23%

8%

4%

3%

17%

18%

40%

19%

2%

2%

6%

8%

18%

64%

Impact of Brexit

Proximity to Home/Family

Culture of the Country

Cost of the Education

Employment Opportunities

Specific Program/School/Institution

Percentage of Respondents

Fact

or

Least important (1) (2) (3) (4) (5) Most important (6)

Wave 3 (December 2018)

9

Brexit Wave Surveys

A specific program or school is most important to majority across

regions; employment most important to 1 in 5 Europeans

Please rank order the following factors influencing your study destination decision from most important (6) to least important (1).

Wave 3 (December 2018)Percentage Ranked Most Important

68%

15%7% 6%

2% 2%

65%

16%10%

6%1% 2%

61%

21%

8%4% 4% 2%

0%

25%

50%

75%

100%

Speci

fic

Pro

gra

m/

Sch

ool/In

stitution

Em

plo

ym

ent

Opport

unitie

s

Cost

of

the

Educa

tion

Culture

of

the C

ountr

y

Pro

xim

ity t

oH

om

e/F

am

ily

Impact

of

Bre

xitPerc

enta

ge R

anked M

ost

Im

port

ant

Factor

Americas Asia-Pacific Europe (non-UK)

Brexit and Graduate Management Education in the United Kingdom10


Brexit Wave Surveys

Reputation of the education system, int’l network, and int’l career

opportunities are top reasons candidates consider UK programs

What are reasons you consider the United Kingdom for your business education?

0%

25%

50%

75%

100%

Reputation ofthe

EducationalSystem

To Develop anInternational

Network

ImprovedChances ofHaving an

InternationalCareer

Plans to Workin the United

Kingdom AfterGraduation

Better CareerPreparation

To iImproveEnglish

LanguageSkills

Affordability ofthe Education

Availability ofFinancial Aid

Perc

enta

ge o

f Resp

ondents

Reasons

Overall Americas Asia-Pacific Europe (non-UK)

11

Wave 3 (December 2018)By World Region of Citizenship


Brexit Wave Surveys

The vast majority of candidates consider other study destinations

in addition to the UK, most often the US and France

Which other study destinations have you considered?*

*Responses add to more than 100 percent because of multiple selections.


Study Destination Considered Overall Americas Asia-Pacific Europe (non-UK)

United States 58% 76% 60% 28%

France 38% 34% 33% 48%

Spain 20% 24% 11% 31%

Canada 12% 13% 15% 5%

Germany 10% 5% 14% 13%

Netherlands 9% 6% 6% 18%

China 7% 3% 13% 9%

Australia 5% 4% 8% 3%

India 4% 0% 15% 0%

Only considered the UK 4% 3% 5% 2%

12

Wave 3 (December 2018)

In your opinion, what impact will the United Kingdom’s decision to leave the European Union (Brexit) have on the following?

Brexit Wave Surveys

Most candidates believe Brexit will have a negative impact on

the availability of study and work visas

Availability of Study Visas Availability of Work Visas

52% 48%53%

32%32%

30%

15%20% 17%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

79% 76% 71%

11%12%

14%

10% 12% 14%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

PositiveImpact

NoImpact

NegativeImpact


In your opinion, what impact will the United Kingdom’s decision to leave the European Union (Brexit) have on the following?

Brexit Wave Surveys

Candidate perceptions of the impact of Brexit on the cost of

education and living in the UK have become more negative

Cost of Education in the UK Cost of Living in the UK

28% 29%38%

20%24%

29%

52%46%

33%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

33% 36%42%

16%20%

23%

51%44%

34%

Wave 1(Dec 2016)

Wave 2(Mar-Apr

2017)

Wave 3(Dec 2018)

PositiveImpact

NoImpact

NegativeImpact



GMAT examinees send their Official Score Report to business school programs of their choice. The programs they select are an indication of where they are interested in studying.

Examining the share of GMAT score reports sent to business school programs located in the United Kingdom in the period before and after the 2016 Brexit vote provides context to the question of whether or not candidate perceptions of the United Kingdom as a study destination have changed.

15



The share of total GMAT score reports sent to UK programs has

increased slightly since the 2016 Brexit vote

Testing year covers the period from July 1 to June 30. For example, testing year 2018 ran from July 1, 2017 to June 30, 2018. The Brexit vote took place June 23, 2016, at the end of testing year 2016.

Percentage of GMAT Score Reports Sent to Programs in the United Kingdom

4.2% 4.2%4.4%

4.9%

5.4%

0.0%

2.5%

5.0%

7.5%

TY 2014 TY 2015 TY 2016 TY 2017 TY 2018

Perc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms

Testing Year

16



The share of GMAT score reports sent to UK programs since the

Brexit vote are stable or up across world regions of citizenship

Percentage of GMAT Score Reports Sent to Programs in the United Kingdom, by World Region of Citizenship


18.4%

12.2%11.2%

8.3%

6.7%

5.3% 5.3%4.7%

4.1%

1.0%

18.8%

12.0% 11.6%

8.4%7.9%

6.8% 6.8%6.2%

5.1%

1.1%

0%

5%

10%

15%

20%

25%

Australia &PacificIslands

WesternEurope

(excludesUK)

EasternEurope

Africa LatinAmerica

East &Southeast

Asia

Middle East Central &South Asia

Canada UnitedStatesP

erc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms


TY 2016 TY 2018

17



The share of score reports sent to UK programs from W. European

citizens is relatively stable compared with before Brexit vote

18

Percentage of GMAT Score Reports Sent to Programs in the United Kingdom, by Country of Citizenship

Testing year covers the period from July 1 to June 30. For example, testing year 2018 ran from July 1, 2017 to June 30, 2018. The Brexit vote took place June 23, 2016, at the end of testing year 2016. Countries with less than 10 score reports sent to programs in the UK excluded.

16.7%

23.2%

17.7%19.5%

16.6%14.7% 15.7% 16.4% 17.5%

29.5%

24.8%21.2% 20.9%

18.7% 18.0% 17.6% 17.3% 16.7%

0%

20%

40%

Cyprus Greece Norway Denmark Switzerland Iceland Austria Ireland Belgium

TY 2016 TY 2018

17.6%

21.6%

15.6% 14.1%12.5%

9.0%5.3% 4.3% 5.1%

16.6%14.8% 14.3%

12.5%10.0% 9.9%

7.0%4.2% 3.9%

0%

20%

40%

Italy Luxembourg Portugal France Spain Germany Finland Sweden Netherlands

Country of Citizenship

Perc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms

Western Europe



Score sending from E. European citizens to UK programs is

also relatively stable compared with before Brexit vote

19



13.0% 14.0% 12.5%14.1%

11.3%

15.8%

11.1%13.1%

8.5%

19.0% 18.8% 18.3% 17.5%13.8% 12.6% 11.7% 11.2% 11.2%

0%

20%

40%

Poland Lithuania Latvia Estonia Croatia Czech Republic RussianFederation

Bulgaria Serbia

TY 2016 TY 2018

15.2%

9.6% 10.3%8.6%

6.0%

10.2% 11.6%9.4%10.9% 10.0% 9.7% 9.0% 8.7% 8.7% 7.7%

4.8%

0%

20%

40%

Romania Slovakia Armenia Ukraine Albania Georgia Azerbaijan Hungary

Country of Citizenship

Perc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms

Eastern Europe



The share of score reports sent to UK programs is up for nearly

all Asia-Pacific citizenship groups, including China and India

20



14.3% 13.4% 14.5%

10.2% 11.2%

3.6%

9.3%5.6%

9.1%

20.0%

15.2% 13.9% 13.4% 12.5%10.0% 9.8% 9.7% 8.6%

0%

20%

40%

Malaysia Thailand Indonesia Japan Singapore Sri Lanka Kazakhstan Mongolia Uzbekistan

TY 2016 TY 2018

7.5% 6.6%4.8% 4.7%

1.1%2.9% 3.2% 2.0% 1.1%

8.5% 7.1% 6.5% 6.2% 5.8% 4.8% 3.3% 2.5% 1.4%

0%

20%

40%

Philippines Pakistan China India Bangladesh Taiwan, China South Korea Vietnam Nepal

Country/Region of Citizenship

Perc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms

Asia Pacific



Over the last two testing years, UK programs have seen an

increase in score reports received from high-scoring examinees

Percentage of GMAT Score Reports Sent to Programs in the United Kingdom, by GMAT Total Score Range


2.6%2.4%

3.5%

3.0%

4.2%4.0%

4.8%

5.8%

5.3%

7.1%

4.9%

6.6%

0%

2%

4%

6%

8%

TY 2014 TY 2015 TY 2016 TY 2017 TY 2018

Perc

enta

ge o

f Sco

re R

eport

s Sent

to U

K P

rogra

ms

Testing Year

Less than 500 500-540 550-590 600-640 650-690 700 or more

21


GMAC’s annual survey of business school admissions offices offers timely insights on the current market for graduate business school applicants. GMAC utilizes two approaches to assess changes in application volume:

• Relative change analysis involves monitoring the number of programs that report either an increase or decrease in applications compared with the prior year.

• Absolute change analysis involves comparing the number of applications received by programs that responded to each of the last two years’ surveys.

A total of 54 UK programs participated in the 2018 survey, and a total of 34 UK programs participated in both the 2017 and 2018 surveys.

In addition to providing details about their application volumes, responding programs also offer information about the citizenship of their international applicants, where in the world they conduct international recruitment, and commentary on their observations of the market.

22



Most UK programs report application volume growth from

international candidates in 2018

Year-on-Year Relative Change in Overall and International Application Volumes,

UK Programs (n=54)

30% 27%

4%2%

67% 71%

0%

25%

50%

75%

100%

Overall International

Perc

enta

ge o

f Pro

gra

ms

Growth

Stable

Decline

23

Year-on-Year Absolute Change in Overall and International Application Volumes,

UK programs (n=34)

2017 Volume

2018 Volume

Absolute Change

Overall 23,174 24,089 +3.9%

International 21,975 22,937 +4.4%

Relative Change Analysis Absolute Change Analysis



UK programs report that the largest number of international

applicants in 2018 are from India and China

Top 5 Countries Cited as Supplying the Greatest Number

of Int’l Candidates

Top 5 Countries Cited as Having the Greatest Year-on-Year

Increase in Applications

Top 5 Countries Cited as Having the Greatest Year-on-Year Decrease in Applications

1. China

2. India

3. United States

4. Canada, Germany, France, Saudi Arabia (tied)

1. India

2. China

3. United States

4. Italy

5. Nigeria

1. Greece

2. United States

3. Germany

4. Thailand

5. France, Singapore (tied)

24



More than 4 in 5 UK programs (83%) report that they

actively recruit int’l candidates, most often in Western Europe

Top 10 Countries UK Programs Say They Actively Recruit From

1. Germany

2. France

3. Italy

4. United States

5. India

6. Thailand

7. China

8. Singapore

9. Japan

10. United Arab Emirates

25



Open-end comments highlight some of the challenges and

uncertainty Brexit has caused in the market

Selection of Open-End Comments of UK Program Survey Respondents

“Uncertainty over Brexit has impacted applications—particularly from European applicants and partners.”

—UK full-time one-year MBA program

“With Brexit approaching the number of EU applications is likely to reduce and we obviously want to maintain a decent level of diversity on programme.”

—UK full-time one-year MBA program

“The overall perception of Brexit has caused some challenges for us in the market in terms of the reputation of the UK as a whole.”

—UK Master in Management program

“Application numbers track well from last year to this, with suspected factors (Brexit) seeming to have little impact. Impact of Brexit may be seen in coming cycle.”

—UK Master of Finance program

26

Contributors and Contact Information

Contributors

Gregg Schoenfeld, Senior Director, Research & Data Science

Matt Hazenbush, Research Communications Senior Manager

Contact Information

For questions or comments regarding the findings,

methodology, or data, please contact the GMAC Research

Department at [email protected].

27

mailto:[email protected]?subject=Year-End Employer Poll Report 2018

©2019 Graduate Management Admission Council (GMAC). All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, distributed or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of GMAC. For permission contact the GMAC Legal Department at [email protected].

GMAC™, GMAT™, Graduate Management Admission Council™, Graduate Management Admission Test™ and NMAT by GMAC™ are trademarks of GMAC in the United States and other countries.

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