For-Profits Account for an Increasing Proportion of Business Degrees in the U.S.

By Dan LeClair

Drawing on U.S. Department of Education data, Table 1 below shows the number of business and management degrees awarded by type of institution: public, private not-for-profit, and private for-profit. The total numbers of undergraduate and master's level business degrees increased by 32% and 47%, respectively. And the increases were across the board. That is, growth in the number of degrees awarded has been supported by institutions of all types.

Table 1. Number of Degrees Awarded in Business and Management (U.S.)
Institution Type	Undergraduate		Master's
	2000	2009	2000	2009
Public	155,460	193,330	45,259	58,976
Private, not for profit	98,182	117,435	63,232	81,182
Private, for profit	13,044	41,614	8,122	31,182
Total	266,686	352,379	116,613	171,340
Source: U.S. Department of Education

However, if we look at the share of the total by institution type (see Table 2 below), we see that the distribution has changed dramatically. The share accounted for by public institutions and by private, not-for-profit institutions decreased, while the for-profit share increased at both undergraduate and master's levels. At the master's level, private for-profit institutions now account for nearly one of every five business graduates.

Table 2. Share of Degrees Awarded in Business and Management (U.S.)
Institution Type	Undergraduate		Master's
	2000	2009	2000	2009
Public	58.3%	54.9%	38.8%	34.4%
Private, not for profit	36.8%	33.3%	54.2%	47.4%
Private, for profit	4.9%	11.8%	7.0%	18.2%
Source: U.S. Department of Education

 

Although data are not tracked at this level in every country, there is evidence of similar trends in many countries.