UK Visa Changes Not an Issue for MBAs says TopMBA Mentor

TopMBA mentor Nunzio Quacquarelli discusses why UK visa changes are not an issue for Indian MBAs, and the advantages afforded business schools in countries with a culture of entrepreneurship.

Changes in UK student visa policies not an issue for Indian MBA students

David Cameron’s recent visit to India to strengthen trade relations between the two countries came on the back of January’s revelation that the number of Indian students studying at British higher education institutions fell by 25% in 2012. It is widely accepted that this is a consequence of a tightening of student visa regulations.

This is a blow to British higher education – financially and otherwise – given that India is the second highest sending nation of students to the UK’s universities and business schools. At the latter, 90% of students are international, and thus Association of MBA research which showed a 20% drop in application to UK business schools in July 2012 will have been extremely troubling.

Perhaps one of the biggest causes of this drop is the reduction in the amount of time that students are allowed to seek work after graduation, which is now only four months. The post-study work visa, which allowed graduates to remain in the country for two years, was also abolished.

However, while it is not unreasonable for undergraduate students to be put off by this, as it will realistically take longer than four months to find a job which would give allow them to remain in the UK, I would argue that this is not an issue for MBA students. The MBA is a highly sought after qualification, studied by attractive candidates with solid work experience. Statistics show that at the top 40 UK business schools, 80-95% of graduates are employed within three months of graduation meaning that for MBA study, the changes have little impact.

The UK jobs market in consulting and financial services is currently robust, having largely recovered from the tribulations of the past few years. And it is likely to remain so; it is predicted that 2013/14 will be a good year for these industries. A candidate might also apply for leave to remain as a high-value migrant on a Tier 1 (Entrepreneur) or Tier 1 (Graduate entrepreneur) visa. 
It should also be added that an MBA gained from a top UK business school will not only be useful in the UK, but across the globe. QS research shows that 67% of employers across the world favor students who have studied internationally. Indian students who have studied in the UK can expect to command a salary premium wherever they work, and given the growth of India’s economy and the consequent creation of opportunities across the public and private sectors, there is very much a case for international study whether or not it is followed by immigration.

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Culture of entrepreneurship gives business schools inherent advantage

It is not surprising that for the past two years the top three business schools in the QS Global 200 entrepreneurship rating – Harvard, Stanford and Wharton – have all been based in the US. Entrepreneurship is embedded in the US psyche and culture, and the opportunity to start your own business is a constitutional right. The national attitude to it is verging on evangelical.

This translates to business schools, particularly in that many boast faculty and speakers who have real-life business experience. It becomes somewhat self-fulfilling here, as the stronger the department is, the higher the caliber of entrepreneur produced is, strengthening the advantages enjoyed by business schools as these new entrepreneurs share their expertise with those who follow in their footsteps.

Of course, this applies to other countries with an ingrained culture of entrepreneurship, such as Spain with its tradition of family-run businesses.

Its business schools – for example IE University, fourth in the entrepreneurship rating – are consequently strong in this area. Again, it is down to having faculty with real-life experience.

When choosing between schools, my final decision was between INSEAD and Wharton, and it was, in the end, my desire to get some US experience that swayed me toward the former. Wharton’s strong entrepreneurship faculty, led at the time by Ian MacMillan, was certainly one of the key draws.

The school gave me plenty of encouragement when it came to starting my own business, giving me backing and office on premises, allowing me to win both the MOOT CORP competition and the Glockner Management Prize while studying there.

While entrepreneurship cannot be taught like a scientific discipline, the skills required can be cultivated and encouraged by a strong department.  It’s about judgment and understanding, and being able to inspire and motivate people. On the technical side, you need to learn to write a business plan, understand balance sheets, get a grasp of cost accounting and understand market research. You learn all this much faster at business school than you would on the job, and the risk of failure is therefore massively reduced.