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Americans Might Be Losing Interest in Business School

The number of Americans taking the GMAT has dropped by a third in the last five years, and business schools have been turning to foreign applicants
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What were once quiet questions about the value of a master's in business administration have become brazen calls, from venture capitalists and old-school businessmen alike, for young entrepreneurs to skip business school altogether. Now it seems that Americans are less interested in the degree than they used to be.  

The number of Americans taking the Graduate Management Admissions Test, which is used in admissions at most business schools, fell for a second consecutive year in 2014, according to data from the Graduate Management Admission Council, which administers the test. Some 87,000 U.S. citizens took the exam from July 2013 to June 2014, a 33 percent drop since 2009, when over 130,000 Americans took the test. The drop looks particularly dramatic because of an artificial bump in test taking in 2012, when students rushed to take the exam before the organization added a new "integrated reasoning" section, says Rich D'Amato, a spokesman for GMAC. Americans might also be shying away from the GMAT because when the economy is good, employed people want to stay that way, and the unemployed tend to think they won't be for long.