Locals looking to upgrade their business skills at graduate schools continued to fill regional programs this fall, though an expanding economy limited growth.
Enrollment at colleges providing master’s in business administration degrees in Orange County rose 1% to 2,647 students during the past year, according to the Business Journal’s directory of MBA programs.
The Business Journal’s directory includes listings for all schools offering MBA programs in Southern California,whether they have campuses in OC or not. Overall, Southern California MBA schools reported a 1% decline in regional enrollment during the past year.
The Big Five,University of California, Irvine, Pepperdine Univ-ersity, California State University, Fullerton, Chapman University and the University of Southern California,dominate OC MBA enrollment with large and well-recognized programs.
The five schools saw enrollment climb 1% this year, versus a year earlier.
Although some programs reported good enrollment gains, the relatively flat overall growth reflected an improving economy, business leaders said.
In 2003, when the economy was starting to emerge from the doldrums, MBA school enrollment rose 10% at OC campuses. Campuswide, enrollment climbed 6%.
A poor economy typically raises unemployment rates and sends laid-off workers back to school to boost their resumes, MBA school administrators said.
Also, when wages are stagnant in a poor economy, workers grow restless and bet an MBA is their pass to higher wages.
Now that the economy is charging ahead, particularly in OC with one of the lowest unemployment rates in the country, it’s harder to attract students, said Andrew Policano, dean of the Paul Merage School of Business at UC Irvine.
Another factor that could be at play: tighter visa controls. Foreign students often are attracted to U.S. MBA programs as a way to jump-start a business career here.
But the federal government has made it tougher for students to get a visa in the wake of the 2001 terrorist attacks, and overall enrollment of foreign students has declined (see related story, page 52).
UCI’s MBA program,one of the biggest locally,recorded a 5% decline in enrollment to 835 students for the school year beginning in 2005.
International universities are improving in Paris, London and other locales, putting pressure on UCI’s enrollment.
“That wasn’t the case 10 years ago,” Policano said.
Policano, who joined the school in the summer of 2004, said he’s optimistic enrollment will rebound.
He launched a program this year that focuses on teaching students to manage business growth amid mounting competition from all corners of the world.
One of the biggest gainers on the directory was Cal State Fullerton, which saw enrollment jump 18% to 494 students.
The school is priced less than others, which helps attract students, said Tom Johnson, associate dean at Cal State Fullerton’s College of Business and Economics.
MBA programs at UCI and USC cost about $45,000 and $65,000, respectively, according to the colleges. It costs about $7,000 to get an MBA degree at Cal State Fullerton.
Johnson also said Cal State Fullerton has been attracting more students to its MBA programs that offer tax and accounting specialties.
The 2002 Sarbanes-Oxley Act brought sweeping accounting reform and regulations seeking to prevent financial meltdowns that hit Enron Corp. and others. The legislation has driven demand for accounting services, which has led to more students signing up for MBA programs, Johnson said.
Cal State Fullerton is set to start work this fall on its $80 million, 190,000-square-foot Steven G. Mihaylo Hall. The new home to the College of Business and Economics is expected to be open in 2008, Johnson said.
At Chapman University’s George L. Argyros School of Business and Economics in Orange, MBA enrollment shot up 14%, or 21 people, to 172.
Jon Kaplan, assistant dean of the business school, said he’s marketing the MBA program aggressively. Kaplan’s efforts have included meetings with businesses and setting up dinners between company executives and students.
“We’ve done a better job of getting out the message,” Kaplan said. “Not everybody turns to us first.”
Last week, Chapman named Arthur Kraft to head its school of business and economics.
Kraft, formerly dean of DePaul University’s business school, is set to start Jan. 1. Chapman business dean Francis Tuggle said earlier this year that he planned to step down.
USC saw growth of 3%, or four students, at its OC operation in Irvine, said Ravi Kumar, vice dean of graduate studies at the Marshall School of Business.
The Marshall School posted a 5% decline in overall MBA enrollment, reflecting the general downturn in admissions during an economic upswing, Kumar said.
“Most people are looking to keep their jobs,” he said.
He noted there has been a decline in full-time enrollment but growth among part-time programs.
Pepperdine University’s Graziadio School of Business and Management reported a 7% decline in local enrollment to 474 MBA students. Pepperdine’s OC campus is in Irvine.
