Tag Archives: GMAC

B-School Opens Doors to Entrepreneurship, New Survey Shows

More than 1 in 10 business school alumni are self-employed, and the longer they’ve been out of business school the more likely they are to have taken an entrepreneurial career path, says a worldwide survey …

More than 1 in 10 business school alumni are self-employed, and the longer they’ve been out of business school the more likely they are to have taken an entrepreneurial career path, says a worldwide survey of nearly 21,000 business school alumni from the classes of 1959-2013, released this week by the Graduate Management Admission Council.

“While entrepreneurship is a hot topic and is a very popular course of study at today’s business schools, these findings suggest that business schools have always prepared students to launch and manage their own businesses,” says Sangeet Chowfla, president and CEO of GMAC, the worldwide association of business schools that conducts the GMAT exam.

“Even if alumni don’t become entrepreneurs at graduation — something more common with today’s graduates — their business education provides the career flexibility and the skills that help them start businesses years later.”

Surveying alumni from 132 business schools around the world, the 2014 Alumni Perspectives Survey is the largest and most far-reaching alumni survey GMAC has ever produced and offers insights into career progression, job and degree satisfaction, and school engagement with alumni spanning more than five decades.

Around the world, the vast majority of MBA and other graduate business degree holders rate the value of their degree highly (94 percent), report high degrees of job satisfaction (83 percent), and say their expectations for the financial return on investment of their graduate management education were met or exceeded (79 percent).

In general, the percentages of alumni reporting satisfaction with their business degrees, jobs, and careers increased the longer they have been out of school.

The survey found that overall, 79 percent of alumni from the classes of 1959-2013 currently work for an employer, 11 percent are self-employed, and 5 percent were retired. The findings include a snapshot view of business school alumni entrepreneurs:

  • The percentage of business school alumni who are now self-employed ranges from 5 percent of the classes of 2010-2013 to 23 percent of those who graduated before 1990. Average time from graduation to self-employment also varies by graduation decade: three years for the classes of 2000-2009, nine years for 1990s graduates, 15 years for 1980s graduates, and 20 years for those who graduated before 1980.
  • Forty-five percent of alumni entrepreneurs from the classes of 2010-2013 started businesses at graduation, as compared with just 7 percent of alumni entrepreneurs who graduated before 1990.
  • 14 percent of recent (2010-2013) alumni entrepreneurs work in the technology sector, compared with just 2 percent of those graduating before 1990. More than 3 in 10 self-employed alumni work in both products and services and consulting (each 31 percent).
  • Entrepreneurship rates among business school alumni vary by world region, with higher entrepreneurship rates in Asia/Pacific Islands, Canada, and Latin American than the United States. Across all regions, the proportion of alumni who are self-employed increases with time out of business school.

“Without the entrepreneurship education I received [while at business school], I would very likely not have started my own company and therefore I would not have become financially independent and surely not have become a professor for entrepreneurship myself,” commented one alumnus.

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Steady MBA Job Outlook Projected for 2014 Grads

The job market will likely hold steady for 2014 business school graduates, as more than three-quarters of employers that plan to hire business school graduates expect to maintain or increase their hiring from this year, …

The job market will likely hold steady for 2014 business school graduates, as more than three-quarters of employers that plan to hire business school graduates expect to maintain or increase their hiring from this year, according to the Year-End Poll of Employers conducted by the Graduate Management Admission Council.

“Actual hiring for 2013 and projected hiring for 2014 are much improved from a few years ago, despite persistent uncertainty in the global economy,” said Rebecca Estrada, GMAC survey manager. “In addition, between 45 percent and 58 percent of employers plan to increase annual base salaries at or above the rate of inflation, another indicator that demand for talent remains strong.”

The poll of 211 employers in 33 countries serves as an early gauge of next year’s job market and includes one-fifth of the Fortune 100 and 41 Fortune 500 companies. It projects some optimism for direct-from-industry hires and master in management graduates, as the percentages of employers who expect to hire in these categories is five percentage points higher than the percentage that actually hired them last year (87 percent vs. 82 percent in 2013 for direct-industry hires and 42 percent vs. 37 percent in 2013 for master in management graduates).

But in most categories, the percentages of employers planning to hire new graduates in most categories are very similar to the percentages of those who hired these graduates in 2013:

  • 72 percent expect to hire MBAs, compared with 71 percent that hired them this year.
  • 81 percent expect to hire bachelor’s degree holders, compared with 82 percent that hired them this year.
  • 36 percent expect to hire master of accounting graduates, compared with 35 percent that hired them this year.
  • 35 percent expect to hire master of finance graduates, compared with 36 percent that hired them this year.

The poll also found the overwhelming majority of employers (97 percent) agree that business school graduates need to have exceptional interpersonal skills, as well as the ability to use data to drive decisions.

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Strong Employment Rates Reported for 2013 MBA Grads

In a September poll of the job market conducted by the Graduate Management Admission Council, 90% of the MBA Class of 2013 indicated they were employed. GMAC reports this figure is six percentage points above …

In a September poll of the job market conducted by the Graduate Management Admission Council, 90% of the MBA Class of 2013 indicated they were employed. GMAC reports this figure is six percentage points above the 2009 employment rate, but down a tick from the 92% of graduates employed by September 2012.

There is some fluctuation in rates by geographic region, with 95% of U.S. respondents employed, 92% of Latin American, 87% of Indians, 82% of Europeans, and 85% of graduates in Asia-pacific countries.

Despite continued economic uncertainty, 74% of class of 2013 alumni who landed jobs said they could not have gotten it without their graduate management education.

“In spite of the slow, uneven economic recovery around the world, the job outlook for business degree-holders is holding fairly steady,” says Gregg Schoenfeld, director of management education research for GMAC. “Regardless of employment status, the vast majority of alumni from the class of 2013 believe their education developed their skills, expanded their network, and prepared them for the job market.”

Key findings:

  • The technology sector is drawing 15% of the class of 2013 graduates worldwide, up from 12% in 2009.
  • Ninety-two percent of full-time two-year MBA alumni were employed at the time of the follow-up alumni poll — the highest level reported since the class of 2009.
  • MBAs and other business master’s degree-holders continue to find opportunities in a variety of industries, with a total of 57% employed in the products and services, finance and accounting, and consulting sectors.
  • Five percent of class of 2013 alumni reported themselves as entrepreneurs/self-employed. A majority (78%) of self-employed alumni expect to hire a median of three employees in the next 12 months.
  • Almost all class of 2013 alumni (96%) rated the value of their degree as outstanding, excellent or good, similar to previous years.

The poll is a follow-up to the GMAC Global Management Education Graduate Survey, an exit survey of graduate business students conducted in February and March. Some 915 alumni from 129 business schools worldwide responded to the poll in September.

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Focusing on the Full M.B.A. Experience

This post originally appeared on Stacy’s “Strictly Business” MBA blog on U.S.News.com Despite all of the attention paid to extracurriculars during the MBA application process, it seems some b-school hopefuls don’t fully realize how vital it …

This post originally appeared on Stacy’s “Strictly Business” MBA blog on U.S.News.com

Despite all of the attention paid to extracurriculars during the MBA application process, it seems some b-school hopefuls don’t fully realize how vital it is to continue being involved once they settle in on campus.

According to the 2013 Prospective Student Data Survey by the Graduate Management Admission Council, the nonprofit behind the GMAT graduate school admission exam, prospective students at both ends of the age spectrum expressed differing levels of interest in participating in clubs. Forty-eight percent of those younger than 24 and 23 percent of those 31 years old and older planned to become involved in student groups once on campus.

While it’s true that part-time students tend to sacrifice participation in MBA clubs and extracurricular activities, anyone gearing up for a traditional, two-year MBA program needs to know this: if you don’t get involved with some activity outside of the classroom, you will not reap the full benefit of the MBA experience.

There is a multitude of ways to get involved, and you will learn as much from these activities as you will from your studies. Your grades really don’t count that much.

Even if your school has a disclosed grading system, after you graduate, no one is going to ask for your GPA. So go to class to learn, but don’t study so much that you miss out on the rest of the experience.

Whether the focus is social enterprise, entrepreneurship, real estate or rugby, there’s a club for every interest under the sun and something for absolutely everyone at b-school. These clubs will not only to build up your network, but help you create a sense of camaraderie with your fellow students. This is essential for getting the most out of your MBA, and I encourage anyone applying to also check out the student clubs offered by your target programs.

You might be contemplating a different career path after graduation, in which case the professional interest clubs provide an excellent opportunity to explore new career options and gain deeper knowledge in a specific area.

Perhaps you’d like to become involved with an activity that provides a diversion from academic life, or nurture a hobby or interest that had languished during your 80-hour work weeks, pre-MBA. Or how about a student organization that is both professional and social, offering the best of both worlds? The options are nearly endless.

There are only so many hours in the week, however, so do watch out for the phenomenon known as FOMO – fear of missing out – which may lead you to overextend yourself simply because there are so many amazing things happening all the time at b-school.

Julianne Harty, who has just graduated from the Tepper School of Business at Carnegie Mellon University and chronicled her MBA experience on her blog “Sleeping Between Spreadsheets,” says she chose both social and professional clubs for the first year but was restrained by both time and her budget as each club has membership dues.

“Be aware that while you may join a lot of clubs, you may only be active in a couple of them,” says Harty. “Join only the ones you’re interested in and will derive value from – the professional club that’s related to your career is a good one, but also look out for social clubs with common interests so that you can develop relationships with people and bond over something that isn’t b-school.”

The writer behind the MBA blog “The Brain Dump,” who goes by Cheetarah, wrote about how she encountered FOMO this past year at the University of Chicago Booth School of Business. She writes that joining student groups is practically mandatory. “If you’re going to search for summer internships and full-time employment the student groups are often the first line of recruiting. Many events are members only. If I want to interact with my target companies I need join the clubs.”

Student clubs can also offer an excellent opportunity to hone your leadership skills. In a recent post on the Duke University Fuqua School of Business student blog, Sarah Feagles shares what lead to her desire to make Fuqua a better place by committing her time and abilities to organizations that she’s passionate about.

“It’s easy to fall into the trap of just going through the motions as an MBA student and making it a very ‘transactional’ period in our lives,” she writes. But now that she co-chairs Fuqua’s Leading Women Organization and is training to become a COLE Leadership Fellow, Feagles has a new perspective on the importance of giving back to the community that has given so much to her.

Aside from the knowledge you acquire academically, the network you cultivate in business school is the most valuable asset you’ll come away with. The best thing about participating on campus, says Harty, is just being able to be with your classmates in a non-academic setting.

“Being able to bond over a beer, a game of poker, the latest case study you worked on, diffuses a little the stress of the program. These extracurriculars are where you find your friends in the program,” she says.

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Hiring Up 4% for Class of 2013 B-School Grads

The job market continues to improve for graduate business school degree holders, as more employers plan to hire MBAs and specialized business master’s talent than did so last year, according to the 2013 Corporate Recruiters …

The job market continues to improve for graduate business school degree holders, as more employers plan to hire MBAs and specialized business master’s talent than did so last year, according to the 2013 Corporate Recruiters Survey. The survey was issued earlier this week by the Graduate Management Admission Council (GMAC) and its survey partners, the European Foundation for Management Development and the MBA Career Services Council.

A companion student exit survey, the 2013 Global Management Education Graduate Survey, shows that similar to last year, six in 10 business school graduates already had job offers in February or March. The annual employer and graduate surveys, looking at the current employment outlook from both sides of the market, were released Tuesday by GMAC.

graphic courtesy of GMAC

graphic courtesy of GMAC

The 2013 Corporate Recruiters Survey of 935 employers around the world finds 75 percent plan to hire MBAs, up from 71 percent that hired MBAs in 2012. The proportion of employers planning to hire other types of business school graduates is up from last year for master in management, master of accounting, master of finance, as well as other specialized business master’s.

Both surveys show a healthier job market for business school graduates from five years ago, when just 50 percent of corporate recruiters planned to hire MBAs and 43 percent of class of 2009 graduates surveyed had early job offers.

“These results positively answer many of the primary questions MBA candidates ask about the opportunities an MBA degree may present to them, by not only confirming the value of the MBA degree in today’s dynamic job market, but also clearly illustrating the industries in which it might currently best be leveraged,” says Mark Peterson, president of the MBA Career Services Council.

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GMAC Updates Free GMATPrep Software

GMAT test takers can now review their practice exam responses, gain insight into their pacing, and customize practice question sets in an updated version of GMATPrep software, the free test prep program from the Graduate …

GMAT test takers can now review their practice exam responses, gain insight into their pacing, and customize practice question sets in an updated version of GMATPrep software, the free test prep program from the Graduate Management Admission Council.

“With two computer adaptive exams using retired test questions and the same technology as the actual exam, GMATPrep has always provided the most realistic experience for test takers to understand the question formats and practice pacing,” says Andy Martelli, vice president of new product development for GMAC. “Now, GMATPrep v2.2 provides even more features to help test takers make the best use of their study time.”

Compatible with both Windows and Macintosh operating systems, the GMATPrep software includes a step-by-step guide to taking the exam, a comprehensive math review, and 90 questions with answer explanations.

GMATPrep was overhauled last year before the addition of the Integrated Reasoning section to the GMAT exam on June 5, to add Integrated Reasoning preparation; enable Macintosh compatibility; and introduce new features to help users customize their studying, track their progress, and extend GMATPrep through the purchase of additional retired test questions. GMATPrep v2.2 includes more features developed as the direct result of feedback from test takers and test prep companies.

In GMATPrep v2.2, users can:

  • Review responses to practice exams and practice question sessions
  • Pause a practice exam or question session
  • Gain insight into pacing with new timer tools, available when answering practice questions
  • Specify how many questions of each type and difficulty level they want to answer when they opt to create their own question set
  • Receive their IR percentile ranking
  • Have Reading Comprehension questions grouped by passage wherever possible
  • Be able to generate system information at the click of button should they require customer support

GMATPrep v2.2 is available for free download at mba.com/gmatprep. An additional question pack, with 404 questions and answer explanations usable within the GMATPrep program, is available for purchase at the mba.com/store.

While GMATPrep includes two full-length practice exams, GMAC will release a second add-on package later this year. Exam Pack 1 will feature additional computer adaptive practice GMAT exams with new questions and will be available for sale on mba.com.

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