A study has revealed the significant impact university business schools have on their regional economies; with some business schools contributing up to £100 million per year.

Carried out for the Association of Business Schools (ABS) by the Nottingham Economics Centre at Nottingham Business School, part of Nottingham Trent University, the report looked at the role of business schools as a focal point for teaching, research and consultancy.

It focused on four diverse business schools as case studies; Aberdeen Business School, Cardiff Business School, London Business School and Nottingham Business School, and found that UK business schools generate £2 billion in direct income for the UK economy with a direct impact of some £7 billion.

The study also investigated the regional impact of business schools and found that they make a large contribution to their local and regional economies in a number of ways, including providing graduates for the local jobs market, increasing the skills of local and regional workforces through professional courses, working to improve business productivity through consultancy projects and attracting students and staff to the local area. Estimates for Aberdeen and Cardiff suggest figures of around £100 million and £76 million per annum respectively for the Scottish and Welsh economies. In the case of Nottingham Business School, the study estimated an impact figure of around £76 million for the East Midlands economy.

Business schools were also found to be at the forefront of promoting entrepreneurship and were focal points of university and industry engagement. Estimates for Nottingham Business School suggest that the average annual value of its placed students to industry is around £4 million per annum. Between 2001 and 2009 (August), 112 start-up businesses originated from Nottingham Trent University’s enterprise unit, The Hive, generating 189 new jobs for the local economy.

Head of Nottingham Economics and report author, Dr Andy Cooke, said: “Since the 1960s, business schools have continued to push forward their role in the economy as providers of enhanced business education. They have now evolved beyond their ‘traditional’ remit as providers of business-focused education. Nowadays, they are catalysts for entrepreneurship, provide focal points for discussion, research and consultancy activity, they contribute knowledge to private and public sector forums and organisations as well as enhancing the reputation and economic wellbeing of their universities.”

Jonathan Slack, Chief Executive of the Association of Business Schools concurred: “This report demonstrates the importance of UK business schools, not just to universities, but to the UK economy. It will help us demonstrate that we are a crucial part of the innovation agenda that drives the economy.”

Professor Baback Yazdani, dean of Nottingham Business School added:

“At Nottingham Business School we are also looking at the impact that UK Business School’s could have on Science, Technology, Engineering and Maths (STEM), as successive Government focus on STEM in the UK over recent years has not been sufficient to drive the economy. Despite the fact we are a very inventive and creative country, our industry – particularly manufacturing - has been in decline relative to other advanced economies. Although STEM subjects are the necessary supply of knowledge and skills for business and industry, they are not sufficient in generating competitive economic activity and advantage.

The new Government should continue to emphasise the investment in STEM, but must not ignore investment in business and management subjects, without which an enterprising culture and transforming economic performance will not materialise. For STEM to flourish, Business Schools have an important role to play in building management and business skills within the STEM workforce so their innovations can be successfully taken forward.

Without management skills we stay where we are currently, a country generating talented scientists and engineers but not commercialising intellectual capital. This is exactly the knowledge that Business Schools create, develop and disseminate into the country.”

Notes for editors:

Press enquiries or to obtain a copy of the report please contact: Helen Fitzpatrick, Press Officer, on Tel: 0115 848 8751, or via email: helen.fitzpatrick@ntu.ac.uk; or Therese Easom, Press and Media Relations Manager, on Tel: 0115 848 8774, or via email: therese.easom@ntu.ac.uk

or: Vicky Robinson, Head of Marketing and Communications, Association of Business Schools, on Tel: 07884 002785 or via: vrobinson@the-abs.org.uk