Business school vs university

How to choose your business education

Updated: 13 Aug 2024

Navigating the world of business education can be confusing when you are trying to choose the right course. If you’re considering studying business, you might be asking yourself, 'What are the differences between a business school and university?'

Before making your decision, be aware of the differences, as each institution will focus on varying outcomes that may or may not suit your personal career goals and needs.

What is a business school vs a university in Australia?

In Australia, all higher education providers must meet the higher education standards framework defined by the Tertiary Education Quality and Standards Agency (TEQSA), an independent national quality assurance regulator, to be certified. In this framework, there are different categories for universities and other higher education providers.

A business school is an independent higher education provider that provides business administration and management courses. Kaplan Business School, for example, offers nationally accredited diploma, undergraduate and postgraduate level courses in business and business-related areas.

Universities are mostly government-funded and have the authority to accredit their own courses and degrees. Universities are required to offer undergraduate and postgraduate courses across a minimum of three different fields of study. So, unlike a business school, you cannot have a university that offers only business programs.

Universities provide a broader spectrum of degrees and staff are required to conduct research in addition to teaching. Unlike other providers, universities also offer doctoral and master’s degrees by research. Significant funding and effort go towards research.

Why do universities label their business faculties as 'business schools'?

There are universities that have labelled their management faculty as a 'business school' e.g. Harvard Business School, London Business School and Melbourne Business School, which can be confusing.

These are not stand-alone business schools but management faculties that are part of a wider university. This is the case with big universities that have a strong reputation in business. It makes sense to operate and market this faculty independently under the umbrella of the university.

The advantage of these integrated business schools is that students benefit from being part of a well-established institution that has access to greater funds and resources.

On the other hand, stand-alone business schools are considered more agile, have greater freedom in financial decisions and decision-making, and can therefore adapt more quickly to today’s changing business environment.

What are the other main points of difference?

Universities and business schools are different types of institutions that have their own history, structure, culture and teaching practices. Here are a few key points to think about when you are making your choice.

Institution size

Universities can be huge, with thousands of students on one campus. Because of this they often have many different clubs, societies and facilities. However, class sizes can be large, teachers have limited time for students, and big institutions can be bureaucratic and impersonal.

Business schools tend to be much smaller, with less staff and reduced class sizes. These can lead to a more individualised, personal teaching environment with greater one-on-one attention.

Areas of study

Universities offer a broad range of courses across a number of faculties including science, education, teaching, business, law, medicine, engineering and arts. This means they can accommodate students with varying career interests, however their resources also need to be spread across all these study areas.

Business schools focus on business study and therefore cater to a smaller group of students. Given the industry focus, they tend to be quicker to introduce new courses and curriculum updates that align with the latest industry trends, including emerging fields and new technologies and applications.

For example, KBS has recently launched a new degree in Master of Business Analytics (Information Technology) to fulfil the high demand of professionals with these skills in Australia.

Career focus

Although this is no longer true in all cases, universities have tended to focus on academic outcomes and research. On the other hand, the reputation of a business school comes from the performance of their graduates in the workforce.

For this reason, industry connections are a key focus, facilitated by dedicated careers services such as Kaplan Business School’s Careers Central. 

This makes it a great environment for students who want to build up their network of contacts in specialised business fields or learn how to run a small business from teachers who have practical experience as entrepreneurs.

Peers

At university, you are sharing a campus with a range of students all studying different courses. That can be fun and exciting. On the other hand, business schools are excellent places for networking, because everyone you meet is there with a career in business as their end goal.

Research

The requirement for universities to undertake research across a diverse range of fields often means they need to divert money to fund that research. According to the ANU Reporter , “Universities [in Australia] now spend more on research (using international student fees) than the government.” 

University academic staff are required to spend a considerable amount of time undertaking, or supervising, research. Independent business schools, on the other hand, are not required to undertake pure research, so these funds and resources are not diverted from teaching.

So, which one is the right fit for you?

As with most things in life, what you get out of your business education is dependent on what course is right for you. 

Finances

There’s the financial reality check; what can you afford right now? How much are your potential education providers asking in fees and what will you lose in wages while you are studying? Think long term and calculate your return on investment. Going straight for a degree may not be realistic regarding time or money. In that case, beginning your education with a diploma may be a good option.

Gradings that focus on academic quality AND student experience

Rankings may be helpful and can add a sense of prestige around a provider, but they often do not tell you about the actual student experience, including support services and employment outcomes. 

The Quality Indicators for Learning and Teaching (QILT) system, however, assesses both business schools and universities for academic quality and learning and is based on student surveys rather than panel judgement.

This grading system factors in other important points such as student support that may otherwise be missed in studies focused only on academic results.

At Kaplan Business School we’re proud that our postgraduate students have rated our student support higher than every public university in Australia.*