A few years ago only a handful of Ukrainians would have known what the acronym MBA stood for. Now an increasing number of the country’s new generation of ambitious business people are striving to earn a master of business administration diploma bearing these coveted letters at home and abroad.
According to Pavlo Sheremeta, the dean of Kyiv Mohyla Business School, one of the factors behind the growth of interest in MBA qualification is the appearance on the job market of MBA graduates returning from study abroad.
While many recruiters in Ukraine may still prefer a diploma from a prestigious foreign business school, it is no longer necessary for MBA hopefuls to go abroad to obtain their degree. These days several Kyiv business schools offer MBA diplomas. The most prominent are the International Management Institute, Kyiv Mohyla Business School, Kyiv Business School and the International Institute of Business.
Demand for MBA training is undoubtedly growing. While four years ago it was mostly multinational companies that encouraged their employees to study for MBAs, now Ukrainian companies are coming to recognize the value of the qualification.
“After the 1998 financial crisis, many Ukrainian companies realized how vital it was for them to understand the business they were involved in, as well as the general business environment,” said Alla Voronova, director of marketing and international relations at the International Management Institute. “The MBA course gives exactly this kind of knowledge and experience.”
Olena Belofastova, the director of Kyiv Business School, confirms that Ukraine’s business people are striving for a better understanding of business principles and see MBA qualification as evidence that the holder possesses that understanding.
“Ukraine is aiming to enter the world and the European markets,” she said. “Ukrainian companies thus want their business to develop in the same way as in the rest of the world.”
Belofastova noted that unlike the strictly academic education provided by state institutions, MBA study gives practical knowledge that allows holders to work effectively.
Earlier this year, the Kyiv Business School became the first Ukrainian school to offer preparatory courses and testing for the Certified Financial Analyst designation in addition to its MBA program. The CFA designation has won global recognition as the premier certification in the investment profession.
The CFA designation is “more than just a standard,” said Rector Yaroslav Holovko. “If you see a CFA abbreviations on a person’s card, it speaks for the person itself.”
“We aim for two things,” Kyiv Mohyla’s Sheremeta said. “The first is to create an overall vision of business, and the second is to develop leadership skills.”
Students in the MBA programs of Ukrainian schools tend to have considerable business experience, either as owners or top managers, and are between 26 and 40. While the cost of programs varies from school to school, between $6,000‑$7,000, they are generally cheaper than in Europe or the United States. The schools’ programs are accredited with different associations or work in accordance with approved programs.
“The content of our MBA program corresponds to European standards,” IMI’s Voronova said. IMI is an associate member of European Foundation of Management Development.
While stressing its European credentials, IMI still tries to incorporate Ukrainian business experience into its program.
“We give both the international and national aspects of business,” Voronova said. “It is important to know Ukrainian reality if you want to run a business here.”
Kyiv Mohyla Business School also teaches case studies based on Ukraine.
MBA courses in Ukraine normally last 16 months to 18 months and both Ukrainian and foreign teachers give lectures. The program often includes an internship in a foreign company. However, Kyiv Mohyla Business School encourages its students to show initiative in finding internships independently.
“Since we are a business school, we place our students in real conditions,” Sharemeta said. “Our students have to find a company for internship on their own, and after that, we help them arrange it.”
There are still obstacles to the development of business education in Ukraine. The most significant probably is the failure of the government to recognize the MBA degree. This means that there are no rules about how the subject should be taught and, in theory, anyone can set up a course, call it an MBA program and hand out diplomas.
The Russian government, by contrast, has recognized the MBA course for 10 years, and the subject is taught in state universities.
“In other countries, MBAs are recognized by the market through some kind of association,” Belofastova said. “Any MBA program or business school should be accredited. But here any university may claim that it runs an MBA course and give out their own diploma.”
In order to fill this gap in the market, Belofastova said that their school is setting up a public organization to accredit MBA programs here.
Meanwhile, the job market is taking account of the increased availability of MBA qualified personnel.
“More and more employers are demanding an MBA when they post a vacancy,” said Lydia Khomyak, director of the Elitpersonal recruitment agency. “Among the positions for which this qualification is required are financial director, jobs in the consulting field and business development.”
According to Khomyak, while employers prefer to hire holders of a foreign MBA, they also have preferences among the different Ukrainian schools. She cited the International Management Institute as the most prestigious among the Kyiv business schools.
Meanwhile, the schools have registered changes in the specialization preferred by candidates.
“At first, when MBAs were becoming popular, the finance course was in big demand,” Voronova said. “Now it is marketing that is most popular.”
“Now people are trying to get an MBA diploma for the sake of these letters,” said Natalya Chudnovska, the director of Osvita educational counseling company. “This document is very popular now.”
