MBA CITY MONITOR. Ivan Bofarull Director, Global Intelligence. Barcelona, Oct 2015

Transcription

1 MBA CITY MONITOR Ivan Bofarull Director, Global Intelligence Barcelona, Oct

2 Aknowledgment I want to thankdr. Xavier Mendoza (ESADE), who published Business Schools and attractingtalent to Barcelona in 2008 (Paradigmes magazines, issue #1, Dec.08). The MBA City Monitor, although considering a methodology with significant variations, has been inspiredbyhis vision. 2

3 Sources of data Financial Times MBA rankings 2013, 2014, 2015 Bloomberg Business Week MBA rankings, 2014 Financial Times ranking of top MBA programs for entrepreneurship, 2015 Economist Intelligence Unit (EIU) Hotspots 2025 city report, 2013 Global Talent Risk report, Boston Consulting Group (BCG) and World Economic Forum, 2011 The 4 global forces, McKinsey Global Institute (MGI), 2015 The Second Machine Age, E.Brynjfolsson & A.McAfee (MIT), 2014 The Economic case for welcoming immigrant entrepreneurs, Kauffman Foundation, 2015 Google maps LinkedIn 3

4 Cities, talent attraction & MBAs 4

5 Cities and talent attraction The global talent riskis growing. Soon staggering talent gaps will appear in large parts of the world threateningeconomic growth. Economies will struggle. (BCG) The roots of talent scarcity in the Western hemisphere are no mystery: populations are ageing rapidly and educational standards are insufficient. (BCG) We will see competition for talent on an unprecedented scale. Human capital is replacing financial capital as the engine of economic prosperity. (BCG) On top of that, In the Second Machine Age, competition for highly- skilled talentwill intensify (Brynjfolsson& McAfee, MIT) The US will need to add 25 million+ workers to its talent base by2030 to sustain economicgrowth. Western Europe: 45 million+. (BCG) 5

6 Cities and talent attraction 50%+ of the world s populationlives in cities, which generate 80% of the GDP worldwide. (EIU) Urbanization, a major disruptive force (McKinsey Global Institute) Global hubs increasingly influential: decisionsmade from a city- perspective (for instance, the case of the City of London, Hong Kong, Singapore, ) rather than a country or regional perspective. (EIU) New highly- skilled, creative, global class Increasingly urban (Martin Prosperity Institute, U.Toronto) increasingly mobile, which increases city s competition for talent attraction and retention. (BCG) As much as American cities capitalized talent mobility in the wake of the Second World War, a question looms today: which cities will capitalize on the global talent mobility flows after the Great Recession and the Dawn of the Second Machine Age? (EIU) 6

7 The MBA City Monitor Is there any tool or actionable metric that we can provide for cities to measure their ability to attract global, highly skilled talent? 7

8 The MBA City Monitor Location & MBAs have a lot to do with each other à Location is a major driver prospective students consider before applying to MBA programs. MBA students & alumni are key for cities within a context of global talent risk *: top MBAs are a unique talent platform cities can tap for their economic growth. Why not predicting a city s appeal for talent with a single metric?: How many top international students are doing an MBA in your city at any time of the year? 8

9 The MBA City Monitor. Inputs. When it comes to consider MBA students/alumnia talent platform for cities, we should make two previous considerations: Sample Curation MBAs have to be a reliable, high- quality source of talent for the city. We have taken the Financial Times MBA ranking as a signal of this quality à only programs ranked by FT have been considered as a base for our calculations. Size and networkeffects Volume is relevant to produce network effects. An extra effort has been put in the calculations to include not only MBAs within specific city limits but in a metro area and beyond,as long as the city is within a 2 hr. driving distance. 9

10 The MBA City Monitor. Inputs Definition of the universe and methodology for the purpose of the MBA City Monitor: Criteria that have to do with sample curation The MBA program has been ranked by the Financial Times in at least one of the last three editions of the MBA ranking Full Time general management program (not part time, evening, specialized, and othervariations) International students (international mobility presumes a higher level of commitment with a specific destination) 10

11 The MBA City Monitor. Inputs Definition of the universe and methodology for the purpose of the MBA City Monitor: Criteria that have to do with size / network effects Enrollments, not intakes (BloombergBusiness Week school profiles) Intakes would over- represent cities with one- Year MBA programs. Urban areas, not strictly city limits (for instance: Oxford and Cambridge add to London) Max. 2h driving distance according to Google Maps (without traffic) 11

12 The MBA City Monitor. Outputs City ranking bytotal international enrolled students City ranking bytotal international enrolled students(per 1 million citizens) When it comes to enrollments per 1M people, only cities/metro areas larger than 1M have been considered Country ranking bytotal internationalenrolledstudents 12

13 The rankings 13

14 The Top 10 Cities By internationalenrollment 14

15 #10. Raleigh- Durham, NC -2 International enrollment: 630 Total enrollment: 1,454 International enrollment per 1M:

16 #9. Singapore = International enrollment: 677 Total enrollment: 742 International enrollment per 1M:

17 #8. Barcelona -3 International enrollment: 771 Total enrollment: 873 International enrollment per 1M: 143 *BCN has dropped 3 spots in the ranking because Eada, one of the top three b-schools in the city, has not been ranked among the top100 by the FT in the last 3 years 17

18 #7. San Francisco San Jose +3 International enrollment: 804 Total enrollment: 1,548 International enrollment per 1M:

19 #6. Toronto +1 International enrollment: 808 Total enrollment: 1,384 International enrollment per 1M:

20 #5. Paris +1 International enrollment: 860 Total enrollment: 911 International enrollment per 1M: 83 20

21 #4. London -1 International enrollment: 938 Total enrollment: 1,042 International enrollment per 1M: 63 21

22 #3. Chicago +1 International enrollment: 1,124 Total enrollment: 2,661 International enrollment per 1M:

23 #2. New York = International enrollment: 1,167 Total enrollment: 2,693 International enrollment per 1M: 61 23

24 #1. Boston = International enrollment: 1,637 Total enrollment: 3,694 International enrollment per 1M:

25 The top in North America Rank City International MBA enrollment 1 Boston NY 1167 *Only urban areas with: intl MBA students 3 Chicago Toronto SF / Silicon Valley Raleigh- Durham, NC Philadelphia

26 The top in Europe Rank City International MBA enrollment 1 London Paris 860 *Only urban areas with: intl MBA students 3 Barcelona Madrid

27 The Top 10 Cities By internationalenrollment per 1M population 27

28 The top 10 cities by international enrollment per 1M* Rank City International MBA enrollment Int enrollment per 1M 1 Boston Raleigh- Durham, NC *Only urban areas with: - 1M+ pop intl MBA students 3 Toronto Barcelona Singapore SF- Silicon Valley Chicago Philadelphia Paris = Madrid

29 The top in North America (x 1M) Rank City International MBA enrollment x 1M 1 Boston Raleigh- Durham, NC 315 *Only urban areas with: - 1M+ pop intl MBA students 3 Toronto SF / Silicon Valley Chicago

30 The top in Europe (x 1M) Rank City International MBA enrollment x 1M 1 Barcelona Paris 83 *Only urban areas with: - 1M+ pop intl MBA students 2= Madrid 83 4 London 63 30

31 Top countries 31

32 Top countries Rank Country International MBA enrollment 1 US 10,202 2 UK 1,400 3 Canada 1,211 4 Spain 1,003 5 France Singapore China

33 Takeaways The US is still the dominant country in the world when it comes to attractinga global top- notch MBA population(close to 60% of total). In particular, the East Coast attracts 1/3 of the global top MBA population, and the Ivy League corridor accounts for almost 20%! However, the San Francisco - Silicon Valley area has experienced the highest growth in the last 3 years. A plausible explanation is that MBAs increasingly consider working in startups a main career option. Outside of the US, the UK, Canada, Spain and France are the leading countries, while Toronto, London, Paris and Barcelona/Madrid theirkey hub cities. Emerging hubs in Asia still struggle to have a relevant population of this type of international students (in this program format). For both cities and countries, the global MBA populationin top programs, should be one of the targets of specific policy initiatives that help to address the talent risk in the decades to come (see Appendix) 33

34 Appendix (1) In 2015, Kauffman Foundation released a major research on the impact of immigrants into the American entrepreneurial ecosystem: 24 out of the top 50 venture- backed startups had at least a foreign- born co- founder 40% out of the Fortune 500 founders were foreign- born or son/daughter of immigrant. MBAs are not a majority amongco- founders (Inc. Magazine) but are instrumental in making startups successful (hired for management team). In top MBA programs, between 80% and 100% of startups are still operating three years after (Financial Times top MBA programs for entrepreneurship ). In Barcelona: 40% out of Wired Magazine s hottest startups (2014) have a foreign- born founder. 10% of top MBAsstart up new businesses. 80%+ are foreign- born. 80%+ are still operating after three years. 34

35 Appendix (2) International students in top MBA programs can be instrumental in the configuration of a healthyand robust entrepreneurialecosystem. Foreign- born citizens seem to have incentives to give the extra mile when it comes to entrepreneurship or simply put, are more creative because of the out- of- the- comfort- zone context where they develop. Top MBA students have specific abilities instrumental for the success of startups and for entrepreneurialecosystems to thrive. Local governments should address specific policies to tap into this talent base and facilitate this virtuous cycle to happen. 35

36 @ivanbofarull 36