The allure of European business schools, long recognized for their international diversity, is now facing significant challenges due to political shifts and stricter immigration policies. With business master’s programs historically featuring as much as 90% foreign students, this diversity has made European institutions stand out from their North American and Asian counterparts. However, recent changes in immigration policies across the UK and EU have raised concerns about the long-term competitiveness of European business education, especially as countries like China and India enhance their local offerings, making them increasingly attractive alternatives.
The UK, in particular, has been hard-hit by a decline in international postgraduate applications. A recent survey by the Chartered Association of Business Schools (CABS) revealed that 90% of UK business school deans reported a drop in non-EU postgraduate applications. This decline is particularly worrying as international students are a vital source of revenue for UK universities and business schools.
Several factors contribute to this trend, including the UK’s recent immigration reforms. The 2023 ban on postgraduate students bringing family members has deterred many students, especially those interested in pursuing an MBA. Furthermore, the increase in the salary threshold for skilled worker visas from £26,200 to £38,700 has made it more difficult for companies to hire international graduates. As a result, major corporations like HSBC, Deloitte, and KPMG have rescinded job offers, creating an additional obstacle for students hoping to secure employment post-graduation.
Andre Spicer, Dean of Bayes Business School in London, explains that the combination of family restrictions and higher salary thresholds has led to a “dampening effect” on the demand for master’s programs, particularly for those looking to study in the UK.
Countries such as China and India have made significant strides in improving the quality of business education. This trend is further compounded by political developments in Europe, with rising far-right sentiments and unrest during the summer protests impacting some international students’ perception of studying in Europe. These countries are becoming increasingly attractive to students who might have previously considered studying abroad in the UK or elsewhere in Europe.
Despite these concerns, some students continue to view the UK as an appealing study destination. Betul Inci, a Turkish executive MBA candidate at Bayes Business School, highlights that London’s status as a global business hub and the opportunity to study alongside people from diverse backgrounds were key factors in her decision to study in the UK.
The political climate in the UK reflects broader trends in Europe, where several countries are introducing stricter immigration policies. The Dutch government, for example, is pushing forward with plans to limit university teaching in English, aiming to curb overcrowded lecture halls and ease housing pressures. In Norway, a notable shift has occurred with the introduction of tuition fees for international students outside the European Economic Area and Switzerland. Similarly, France has enacted reforms that have raised concerns over asylum procedures and migration quotas. However, some of these reforms have been challenged and struck down in court.
Despite the toughening immigration landscape, there have been some positive changes. France, for instance, has introduced a rule that simplifies the process for family members of foreign nationals to secure residence rights and work permits. Graduates can also stay in the country for up to 24 months after completing their studies to search for employment. These measures have provided a glimmer of hope for students looking to stay in Europe after completing their business education.
In light of these challenges, many European business schools are adapting by diversifying their student recruitment efforts. Essec Business School in France has expanded its international partnerships and opened a recruitment office in Latin America, reflecting a broader trend across European schools to diversify their student base.
Additionally, European schools are investing in digital learning platforms and establishing campuses abroad to navigate the shifting political and economic landscape. The University of Southampton in the UK, for instance, is planning to open a new campus in India, investing £30 million over the next decade with the goal of enrolling 5,500 students in that period.
Germany, Europe’s largest economy, continues to attract international students despite the tightening of immigration policies. Mannheim Business School has reported that the demand for its programs has not been significantly impacted by these changes. The key advantage for international students in Germany lies in the country’s generous post-study work visas, which offer 18 months for graduates to secure employment. For students like Ferdinandus Sianipar, who moved from Indonesia to pursue his MBA at WHU—Otto Beisheim School of Management, the prospect of permanent residence is a strong motivator to study in Germany.
While political shifts and immigration policy changes pose challenges, Europe continues to offer unique benefits for international business students. The continent remains a hub for cultural diversity and favorable post-graduation work opportunities. Furthermore, as countries like Australia and Canada tighten their immigration policies, European schools may gain an edge in the global competition for international students.
The race to attract international business students is becoming more competitive, and European schools are adjusting to the changing political environment. While political and immigration challenges are real, the strengths of European business schools—such as post-graduation work opportunities and a diverse, global student body—remain attractive to students worldwide. As other countries, like Australia and Canada, implement tighter visa restrictions, European schools may find themselves with a greater opportunity to stand out in the global marketplace for business education.
