MBA Programs: What do Latin American Applicants Value?

The annual QS TopMBA.com Applicant Survey takes a snapshot of applicants to MBA programs across the world. It reveals and analyzes the hopes and ambitions of the business leaders of the future, as well as revealing who they are and how they are reacting to trends in global business.

While the focus of the survey (this year based on the responses of over 4,100 prospective MBA applicants) is international, in appreciation of the global outlook of MBA candidates and of the unstoppable march of globalization, many of the findings are broken down by region to reflect the still pertinent regional differences in the concerns and demographics of MBA applicants.

So, what does the 2013 survey tell us about what Latin American applicants look for in an MBA program, and about who they are?

An MBA in the USA most popular with Latin American applicants

The United States is the most popular destination by far for Latin American respondents to the survey, with 70.7% of students stating that they were considering an MBA in the USA. The only region in the world with a greater proportion of students considering studying in the world’s most popular study destination is the US & Canada itself. Though less popular, Canada is on the radar of 30.3% of applicants, and has enjoyed a significant surge in interest, up 11.3% since last year’s survey. Incidentally, the US’s popularity is also up – by 6.7%.

The growing popularity of studying an MBA in the USA or Canada may be an indication of an increasingly global mindset, as candidates look to travel to their northern neighbors to gain international experience. This may be a consequence of the increased preponderance of international firms in the region – particularly in Mexico (US pharmaceutical and industrial firms) and Argentina (professional services).

In line with the rest of the world, the UK is second to the US, with 42.8% stating an interest in studying there – an increase of 3.8%. Other nations which enjoy increased popularity are Australia (+5.3%), and France (+3.6%), which rank fourth and fifth respectively on 27.9% and 23.8%.

Unsurprisingly, Spain is the third most popular MBA destination among respondents (33.1%). Despite its well-publicized economic woes, the prestige of highly international Spanish business schools such as IESE, IE or ESADE has not been eroded, which along with a shared language give it considerable cachet for Latin American MBA applicants

No Latin American countries currently fall within the world’s top 20 MBA destinations.

Is the cost of an MBA the most important factor for applicants?

The criteria which MBA applicants use to choose MBA programs differs from region to region, reflecting differing concerns and priorities. However, with the exception of Western Europe, the most important factor for applicants in every region is the availability of financial aid. Since the financial crisis of 2008, the proportion of candidates relying on scholarships globally has steadily increased, reaching 66.1% this year.  Affordability is notably the firth most important factor for Latin American candidates, suggesting that the cost of an MBA program is a pertinent factor in program choice.

But this does not necessarily mean that candidates will sacrifice quality for affordability, as second in the list of decisive factor for Latin American applicants is school reputation, followed by the quality of research and staff. Specializations ranks sixth – higher than any other region – so it is clear that Latin American applicants are keen to find programs which meet their individual needs. Notably, recent rankings come quite low down the list, suggesting a higher level of discernment in MBA program selection than deference to ranking methodologies.

Fourth on the list is MBA program accreditation, which we can take as an appreciation of the importance of an internationally-recognized qualification when seeking international careers. This is very much an American concern, with applicants from the US & Canada region sharing this high valuation of accreditation – perhaps unsurprisingly for the region in which accreditation first came to the fore and in which the major accreditation bodies are based.

Perhaps we can assume a degree of osmosis at play here – particularly given the popularity of American and Canadian schools with Latin American MBA students. Of course, accreditation also stands as an instantly identifiable mark of quality, of no small importance to students considering international MBA study at schools beyond the very biggest names in an increasingly saturated field.

We see a symbiosis of the cost of an MBA and program quality in the importance placed on return on investment, which ranks seventh.

MBA salary expectations and demographics: who is the typical Latin American MBA student?

One of the key findings in this year’s survey is an almost universal lowering of MBA salary expectations. Latin America stands as one of the most dramatic instances of this, with salary expectations dropping from US$90,000 in 2012 to US$70,000.

This is the lowest target salary in any region by quite some way – following logically on from the fact Latin American MBA salaries remain relatively low in comparison with other regions. However, this represents a realistic outlook – though MBA salaries are higher in other regions, expectations remain in excess of reality (see the QS Jobs & Salary Trends Report for regional salary figures). Average Latin American MBA salaries and bonuses at international employers, in fact, exceed this figure, standing as they do at US$78,104.

Latin American candidates, with an average pre-MBA salary of US$33,000 earn just over half of what their US and Canadian peers do (US$63,000). However, they earn more than candidates in the Asia Pacific and Middle East & African regions (US$30,000 and US$29,000 respectively).

Applicants are, in line with long-term global trends, getting older. The average Latin American applicant is 28.9, compared to 27.4 in 2011. This caps a post-recession trend for candidates to wait until they are more established in their careers before committing to time out of work. In line with this, the proportion of candidates with over 10 years of work experience has increased from 11% in 2011 to 15.3% in 2013, while those with 0-4 has fallen from 63.2% to 54%.

The highest proportion of candidates in the region work in financial services and consulting, as you might expect, though there has been a significant drop in the latter, which now accounts for less than 10%. There has been an increase in candidates from the consumer products, education, and information technology sectors. A slightly higher than average proportion of Latin American MBA applicants are female, with the figure of 40.1% being exceeded only by the US & Canada and Eastern Europe.

To learn more about global trends, including expected work hours and long terms aims, see ‘10 key findings from the 2013 QS TopMBA.com Applicant Survey’ or ‘2013 QS TopMBA.com Applicant Survey: Overview’.