Minority MBA Programs for Students

Read about the outlook for minority MBA students

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Note: "Minority" can be defined as a group that differs from the majority of the population, particularly in terms of religion, culture, ethnic background, race, sexual orientation or physical ability.

"Underrepresented minority" has slightly different connotations and refers to groups whose presence in different areas is disproportionate when compared to overall population figures - a minority may comprise three percent of American citizens, but only 0.7 percent of b-school students.

The number of African American, Hispanic American and Native American/Alaskan Native students enrolled in b-school programs is significantly lower than the percent of the population they comprise; generally, they are considered to be the underrepresented groups in business.

What is the outlook for minority MBA applicants?

The prospects for minority business students continue to improve as an increasing number of schools prioritize a diverse student body. According to the GMAC 2001 Application Trends Survey, 31 percent of 127 b-schools actively recruited minorities.

Across the board, schools are emphasizing the importance of diversity in business programs. Nevertheless, the number of African-American, Hispanic and Native American students in business programs is still quite small, and schools are eager to improve the statistics.

What percentage of current MBA students are minorities?

The GMAC's 2002 Global MBA Survey of graduating MBA classes states that "Among US citizens who were asked their race/ethnicity, 84.7 percent are white (non-Hispanic). Asian Americans make up the next largest group at 6.7 percent, followed by Hispanics (4.5 percent) and blacks/African Americans (4.1 percent)."

According to Business Week, the number of underrepresented minorities (African American, Hispanic American and Native American) currently enrolled at the top 30 schools averages 9.6 percent. In contrast, nearly 40 percent of minority b-students attend traditionally black business schools. The precise numbers vary with each program, but business school advisors should be familiar with the percentages.

What is the status of affirmative action in colleges and universities?

In recent years, United States courts have handed down a series of contradictory judgments about affirmative action policies, which consider race as one of several factors during the admissions process. Some of these decisions have curtailed affirmative action in California, Washington, Texas and other states; others have affirmed that diverse classrooms are crucial to the education system and have upheld school policies.

In May, 2002, a federal appeals court ruled in Grutter vs. Bollinger that the University of Michigan's law school did not employ racial quotas; rather, it had a "compelling interest" when it sought to enroll a diverse student body. The law school argued that it did not set quotas to recruit a specific number of minority students; nevertheless, it claimed, any restrictions on the admissions policy would reduce minority populations to "token" levels. Many legal experts believe that the Supreme Court will reexamine affirmative action in the near future in order to resolve the conflicting decisions made by lower circuit courts.

What factors should I consider when comparing programs?

In addition to the tips in our Choosing a School Q&A, there are several questions to ask yourself as you find schools. Look closely at statistics: many schools say they are the "most diverse," but what do they use to support this statement? Study how the school addresses different kinds of diversity (cultural, sexual and physical). These numbers are available on school web sites but can be buried in different sections; it may be easier to Request Information from an admissions counselor.

Do not be surprised if your prospective b-schools have few minority instructors. Business schools are eager to recruit instructors from diverse backgrounds, but very few minority business students receive degrees at the doctoral level. This number is increasing, however, due in large part to the development of mentoring programs and the efforts of school recruiters.

What systems do b-schools have in place to support minority students?

Each business school addresses the needs of minority students in a unique way, but many will provide some combination of the following:

• Scholarships for incoming and returning minority business students
• Minority student groups that work to increase minority visibility on campus, bring diversity-related issues to the table, provide support to minority students and help members network with leaders in the business community. In addition to school organizations, universities may have on-campus chapters of national minority business organizations and fraternities, like the National Association of Black Accountants.
• Mentoring programs with business professionals. These programs are highly valued by b-school students, who say that mentors provide invaluable advice and insight into the challenges of the business world.
• Alumni societies to provide support and networking opportunities beyond college.

What types of financial aid are available to minority b-school students?

The amount of financial aid available to minority students is growing, although private schools can earmark specific funds for incoming minority students, whereas state institutions are constrained by anti-affirmative action measures. Schools that do offer scholarships often do so in partnership with corporate sponsors who hope to recruit graduates in the future.

Numerous private scholarship opportunities for minority business students also exist, particularly for those in postgraduate programs. Unless otherwise mentioned, the organizations listed below offer multiple awards of different amounts that can range up to full tuition:

• The National Society of Hispanic MBAs and theHispanic Scholarship Fund have partnered to assist outstanding Hispanic students who plan to pursue Master's Degrees in management and business. Factors considered include academic achievement, community involvement and financial need.
• The National Black MBA Association awards scholarships and fellowships to all minority students at the undergraduate, graduate and doctoral levels. Awards are given by the national organization and by local chapters.
• The Consortium for Graduate Study in Management has granted 4,000 MBA fellowships to minority students since 1996. In alliance with 14 colleges and universities, the CGSM offers merit-based scholarships to African American, Hispanic American and Native American applicants.
• The Robert A. Toigo Foundation works with 17 colleges and universities to support minority MBA students who plan to enter the finance industry. They offer scholarships (up to $10,000), mentor programs, internships and job placement assistance.
• The American Indian Science and Engineering Society is geared towards Native American students enrolled in hard sciences and engineering programs; however, scholarships from several local chapters are open to business students, as well.

Are there other means of support available to minority students?

Many business schools have mentoring programs that are designed to help outstanding minority students connect with leaders in the business community. In addition, there are also national mentoring and support groups, including:

• The PhD Project serves as a resource for African Americans, Hispanic Americans and Native Americans who would like to receive more information about business doctoral studies. Their network includes current doctoral students, doctoral faculty and program directors. They also provide mentoring and assistance with doctoral applications. Since inception, members of the PhD Project have seen a dramatic increase in the number of minority candidates in business doctoral programs.
• Management Leadership for Tomorrow connects individuals who would like to pursue business studies with mentors in the community. They are also a resource for fellowships and for career planning strategies.
• Sponsors for Educational Opportunity provides mentoring and internships for minority b-school undergraduates in order to develop lifelong networking opportunities and professional connections. The SEO Career Program's summer internships bring minority students into fields that range from accounting to philanthropy. Since its creation in 1980, the Career Program has placed over 2500 students, 75 percent of whom have accepted positions in their internship fields after finishing school.

Each of these groups is also part of a larger organization called the Diversity Pipeline Alliance. The Diversity Pipeline Alliance brings groups together in order to provide support for minority b-school students through all stages of education up to the PhD level. Some associations, like LEAD, bring aspiring high school students onto renowned business school campuses for the summer to foster connections with school officials.

Job prospects for minority business students

Currently, there are very few minorities in executive and upper-level management positions, but this should improve: major corporations and Fortune 500 companies want to recruit minority workers. As the nation's demographics change, executives seek managers who reflect the cultural composition of the country. Employers want their companies to reflect the makeup of today's diverse global business environment. More importantly, they want senior level employees who will bring new perspectives to the company's agenda. Minorities are being recruited for these positions in order to become mentors for the next wave of minority business professionals.

Take the time to find schools that interest you; then, request information to find out what they can offer to minority students. Your business school and its minority organizations should have the connections to put you in contact with prospective employers who value the skills and experiences that you will bring to the work force.