The Business Education Boom

Applications and enrollment are up as programs put dual emphasis on soft skills and new technologies

The rise in applications to b-schools, the increasing popularity of the undergraduate business degree, and the evolution of business education are good news not just for educational institutions but also for companies and organizations that rely on skilled talent.

“At the top schools, like Harvard, Stanford, and MIT, applications are up by 20% or more,” says John Byrne, founder of Poets & Quants, a website focused on business education. Byrne attributes the popularity in part to the fact that the MBA is now perceived as an all-purpose degree, much like a law degree once was. “People recognize that they can pretty much do almost anything after they get the MBA,” he says.

But the real growth story, according to Byrne, is in the burgeoning popularity of undergraduate business degrees. “Business is now the No. 1 major in the U.S. and Europe,” says Byrne. “In some universities one-third to forty percent of undergrads are majoring in business.”

Brent D. Williams, Dean of the Sam M. Walton College of Business, credits the growing popularity of the undergraduate business degree to the perception that it may offer a better payoff than other degrees. “With a business degree, there is the belief that there will be a return on the investment that they’re making in those four years,” says Williams. “That same belief isn’t necessarily there with other undergraduate degrees.”

Boon for Capitalism

Studies that indicate young people are dissatisfied with or doubtful of capitalism have garnered significant attention. However, the rising interest in both graduate and undergraduate business degrees suggests a renewed appreciation of capitalism as the engine of economic growth. “You don’t find a lot of skeptics [of capitalism] at business school,” asserts Byrne. “By and large, you find fire-breathing capitalists who believe that the harder you work and the smarter you work the better off you will be, and that capitalism is the best system that’s ever been invented.”

Students don’t always make the initial connection between capitalism and economic growth, notes Dean Williams. Either they don’t fully understand capitalism as a nonpolitical construct, or they just see it in practice and take it for granted, “like gravity or electricity,” he says. “But then you get to talking about capitalism and you see the lightbulbs go off when they understand it.”

Expanding Curricula

Both undergraduate and graduate programs are incorporating more experiential learning, particularly around fast-moving technology like artificial intelligence, into their curricula. Partnerships with leading tech companies allow students to get hands-on experience. Says Dean Williams, “As we work to develop top talent, we’re increasingly seeing experiential learning as a really important aspect.”

Partnerships between schools and leading technology companies are mutually beneficial. AI’s anticipated utility and ubiquity in business make fluency essential for individuals seeking strong career prospects and for companies looking to stay relevant and competitive. Schools are offering – and in some cases requiring – classes in AI, machine learning, and data analytics, and offering AI-centric concentrations or certificates.

Says Byrne, “Businesses recognize that they need not only people with the skills and knowledge to manage and evolve technology, but people who understand how to use it. The schools are simply responding to that need.”

Business courses are also helping students understand how AI can be helpful in non-tech subjects, such as finance, strategy, marketing, operations, and supply chain. It is being incorporated into how students learn, not just what they learn, with students encouraged to use AI in case work, consulting projects, and “war games.” Byrne believes that AI’s growing importance will be a net positive for undergrads who are well-versed in it. “Because [they] typically get those very early, entry-level, data-jockey jobs, AI is going to have a much more disruptive impact on that market than on the MBA market,” he says.

Human Touch

While AI and tech-related skills loom large on campuses, schools and companies are also putting more emphasis on “soft skills.” A 2025 study from the World Economic Forum showed that across the globe, companies view creative thinking, resilience, flexibility, agility, curiosity and lifelong learning, leadership and social influence, and talent management among the top 10 skills of growing importance.

“The desire and need for incorporating the human interface layer into business is only going to increase,” says technologist Ben Pring, who has been studying the intersection of the workplace and cutting-edge technology since the 1990s. “Two essentially human capabilities that machines cannot replicate or be a substitute for are empathy and persuasion.” 

Business education will continue to evolve along with technological, societal, and economic trends. As befits a system that serves market-driven entities, need will influence supply, adaptation will be essential, and competition will help drive quality and growth.