The AACSB’s “2025 State of Business Education” report analyzes global business schools’ structural, pedagogical, and leadership challenges. It outlines emerging trends and identifies strategic priorities to remain relevant in a context marked by technological change and shifting learner expectations.
This publication provides a framework for understanding the evolving nature of management education and highlights key areas for adaptation and innovation.
Download the 2025 State of Business Education Report
Business Education in Transition: Challenges and Strategic Shifts
As the landscape of higher education changes, business schools worldwide are being called to redefine their missions, financial models, and learning approaches. The 2025 edition of AACSB’s State of Business Education report captures this transformation, stressing the need for agility and collaboration to prepare future leaders.
Redefining Financial Sustainability
Financial pressures remain central. The report highlights the importance of reducing tuition dependence by diversifying income sources.
Institutions are exploring lifelong learning programs, industry collaborations, and alternative models such as grant funding and online education.
Schools are also encouraged to optimize operational structures and strengthen endowment management to mitigate economic uncertainty.
New Approaches to Learner Engagement
Admissions trends are uneven across program types. While undergraduate and master’s programs show growth, MBA enrollments have plateaued or declined in some regions. Students increasingly seek flexible formats, hybrid learning, and personalized support.
Mental health services and student well-being have also become priorities, reflecting broader societal shifts.
Geopolitical developments and immigration policies are impacting international student mobility. Schools are advised to build resilient recruitment strategies, foster global partnerships, and strengthen digital engagement to reach new markets.
Graduate Readiness and the Role of Experiential Learning
Employers now look beyond technical skills. The demand for critical thinking, communication, resilience, and adaptability is rising.
To meet this demand, business schools are expanding experiential learning through internships, consulting projects, and short-format credentials to ensure graduates are workforce-ready.
Artificial intelligence is another factor reshaping graduate profiles. As automation redefines jobs, business education must prepare students for ethical and effective technological collaboration.
Faculty Expectations and Institutional Support
The faculty role is becoming more complex. In addition to research and teaching, professors are expected to engage with industry, lead interdisciplinary initiatives, and contribute to innovation.
Recruiting faculty with expertise in AI, sustainability, and digital strategy is a growing challenge.
With these expanded responsibilities, the report emphasizes the need for support mechanisms to address workload, well-being, and career progression, especially in light of rising burnout levels.
Leadership Under Pressure
Leadership roles in business schools are also evolving. Deans and administrators must navigate a financial, political, and social expectations matrix while sustaining academic quality and relevance. This includes fostering international and inter-institutional collaborations and investing in leadership development, particularly in strategic areas like AI governance and change management.
Towards a New Vision for Business Schools
The report outlines a vision for more adaptive, learner-centered institutions. Future-ready business schools will prioritize:
- Hands-on learning integrated into curricula
- Ethical and responsible leadership, aligned with societal impact
- Sustainability and ESG principles, embedded in both strategy and content
- Flexible program design, tailored to a wide range of learners and career paths
This evolution aims to prepare graduates for complexity while focusing on human values and long-term responsibility.
The 2025 AACSB report highlights that transformation is no longer optional but essential. From financial sustainability to pedagogical innovation, every dimension of business education is undergoing profound change. For institutions like EMLV, these insights reaffirm the importance of aligning academic offerings with the future of work and global expectations.
Learn more about EMLV’s AACSB-accredited international programmes
