UK Visa Reforms to Have Little Impact on Non-EU MBAs

Despite recent changes to UK immigration law, TopMBA.com finds that there has been little impact on non-EU MBAs. 

With the UK government clamping down on abuses of its immigration system, many have worried that international MBA students in the country may become innocent by-standers in recently announced changes to the student visa system.

However, after official clarifications by the UK Border Agency (download pdf), business schools, students, and experts in the field have expressed relief that non-European Union (EU) MBA graduates will have far more freedom to work in the country after their degree than initially expected.

Of the announced changes, most notable to MBAs is the closure of the current Tier 1 Post-Study Work (PSW) visa program in April 2012, which allows international students from outside of the EU to remain in the UK for a period of up to two years to find work. For foreign students who hold residency within an EU country, European visa rules allow them to work anywhere in the EU for as long as they wish.

No quotas for UK MBA work visas

However, the closure of the PSW visa program is being accompanied by a relaxation of previous restrictions on non-EU graduates changing their visa status to Tier Two working visas.

“It seems all MBA students will be able to switch to Tier Two visas without being counted against the annual Tier Two quota that is being introduced. Add to this that MBA employers will no longer be forced to use the resident labour market test. Previously this test meant that recruiters needed to prove that they could not find an alternative employee in the UK with the same skill-set,” explains Nunzio Quacquarelli, managing director of QS Quacquarelli Symonds Ltd, who organize the QS World MBA Tour.

“Switching to a Tier Two visa will be on condition that the student finds employment whilst he or she is in the UK and prior to their student visa expiring. As the student visas will be valid for six months after they complete their MBA course, and, on average 90% of MBA candidates at good UK business schools have a job within three months of graduation, this really shouldn’t dissuade would-be international MBA applicants from considering the UK.”

Little-to-no effect on international MBAs

The remaining changes to the UK student visa system should have little effect on international MBA graduates in the UK.

Writing on his blog, Conrad Chua, head of MBA recruitment and admissions at Cambridge University’s Judge Business School argues that, for graduates from the top UK business schools at least, much of the changes will have little significance, as institutions already impose stricter regulation on their MBA applicants.

To paraphrase Chua; while students will now need to show financial means to support their study, reputable institutions already require this. The same is true for the introduction of stricter English language requirements, while a top limit of five years for a student visa will not affect UK MBA applicants as all courses are 24 months or less.

International MBA applications to the UK back on track

Initially, some UK business schools noticed a decline in MBA applications to UK institutions, as reported by Businessweek. However, now that there is more clarity into how international MBA graduates will be affected, there appears to be a return to normality in applications.

Ffion Hughes, admission and marketing manager at Manchester Business School reports that the she did see a drop of enquiries when the initial UK visa changes were announced, but applicant numbers have since improved now that the details have been explained.

In fact, for would be entrepreneurs who choose to study for an MBA in the UK, the government’s announcement should spark some serious interest.

MBA entrepreneurs welcome in the UK

“We will ensure that genuine student entrepreneurs with a great idea are able to stay on in the UK to develop their business proposition,” states the UK Border Agency.

While neither the government nor the UK Border Agency have announced any details on the workings of this system to encourage entrepreneurial business activity in the UK, it is certainly a promising statement.

“A new entrepreneurial route for bright and innovative students will undoubtedly be a great opportunity for high calibre MBAs to stay and develop businesses in the UK,” states Quacquarelli, himself an MBA entrepreneur having launched what is now QS Quacquarelli Symonds Ltd whilst an MBA student at the Wharton School, University of Pennsylvania in 1990. “The coalition government seems serious about delivering on this promise, which could make the UK a highly attractive destination for international MBAs.

“However, we are still waiting for clarification on exactly how the UK government is going to encourage these student entrepreneurs."