MORE than one in every 10 graduates of business schools are self-employed, according to a worldwide survey of nearly 21,000 business school alumni from the classes of 1959-2013 released by the Graduate Management Admission Council (GMAC).
“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,” said Sangeet Chowfla, president and chief executive officer of GMAC, the worldwide association of business schools that conducts the Graduate Management Admission Test.
“Even if the 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,” Chowfla added.
The 2014 Alumni Perspectives Survey is the largest—surveying alumni from 132 business schools around the world—and the most far-reaching 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 holders of Master of Business Administration (MBA) and other graduate business degrees 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 five 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 five percent of the classes of 2010-2013 to 23 percent of those who graduated before 1990. The 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.
Some 14 percent of recent (2010-2013) alumni entrepreneurs work in the technology sector, compared with just two percent of those graduating before 1990. More than three 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.
GMAC conducts the GMAT that helps undergraduate degree holders who want to pursue graduate management programs. It is a computer adaptive test that assesses a person’s quantitative reasoning, verbal reasoning and analytical writing skills; and the ability to integrate information and make decisions basis that information, in preparation for being admitted into a graduate management program, such as an MBA, a Masters in Management, or even a PhD.
It is the only standardized test designed explicitly for graduate business and management programs worldwide — is continuously available at nearly 600 test centers in over 110 countries. The test is used as a critical element of the admissions process by more than 6,000 management programs at approximately 2,100 institutions in all parts of the world.
Whether it is in the US, or Asia Pacific or Europe, the GMAT exam enables candidates to apply for admission to the world’s leading business schools in any destination they aspire for. Leading business schools and management education programs worldwide recognize the GMAT exam as the most effective predictor of academic success in the program. What that means is that if you do well on the GMAT then you can expect to be successful in the classroom. This validity of the GMAT is important or vital to schools when making admissions decisions.
Among the universities and business schools in the Philippines that accept the GMAT exam are the Asian Institute of Management, Adventist International Institute of Advanced Studies, De La Salle University and the University of the Philippines.
As the GMAT exam is the most reliable predictor of success in graduate business programs, Filipino business schools can be assured that the students they are admitting have the required skills to succeed in their programs. As a global assessment with over 250,000 test takers each year, the GMAT exam allows Filipino schools to recruit candidates from around the world that match the high standards of their programs.
The GMAT exam is available on demand round the year at 600 test centers in over 110 countries. This allows candidates to take the test when they are ready and well prepared for it. You may take the exam no more than once every 31 calendar days and no more than five times in a rolling 12 month period. The GMAT exam is administered entirely in English. The quantitative reasoning and verbal reasoning sections of the exam are computer adaptive, meaning questions are chosen for you based on how you have answered the previous questions. The score is based on both the difficulty level of the questions answered and the number of correct responses. By adjusting to your individual ability level, the computer adaptive test shortens the time it takes to complete the exam and establishes a higher level of accuracy than a test with a fixed patter of questions.
The GMAT exam consists of four sections—Analytical Writing Assessment, Integrated Reasoning, Quantitative Reasoning, and Verbal Reasoning.
The test is taken by a wide ranging profile of candidates. There are a multitude of different backgrounds that test takers represent: 48 percent of GMAT examinees in 2013 were younger than 25 years old; 43 percent women; 35 percent intended to pursue a specialized master degree.
Aspiring students for MBA or Master’s degrees should search for programs that may best prepare them for the industry they want to work in and that offer a curriculum that seems most attuned to the career path they have in mind.
GMAC said a graduate management education gives students the skills, preparation, and credentials you need to accelerate their career growth. Admissions professionals value the GMAT exam’s ability to predict program performance.
Filipino students who want to take the exam should register and complete details on www.mba.com<http://www.mba.com>. They can schedule the GMAT exam in the test centers in the Philippines: MISNet Education, Inc., Unit 2201 Antel Corporate 2000 Centre,121 Valero Street, Salcedo Village,1227 Makati City Manila Philippines.