Written evidence submitted by The Association
of Business Executives (SV23)
EXECUTIVE SUMMARY
- ABE is an awarding body and membership organisation
founded in 1973, based in New Malden, employing 35 staff, with
50,000 registered students and a turnover of more than £6
million.
- It is accredited by Ofqual and its qualifications
are on the Qualifications and Credit Framework (QCF).
- ABE offers Diplomas at Levels 4, 5 and 6 in four
subjects: Business Management; Human Resource Management; Travel,
Tourism and Hospitality Management; and Marketing Management.
- ABE qualifications are taught by a network of
534, mainly private, accredited colleges worldwide of which 190
are in the UK. ABE will only accredit a college to teach its qualifications
in the UK if the college has in turn been independently accredited
by Ofsted, BAC, ASIC or Accreditation UK. ABE does not directly
teach its qualifications, students are taught by the colleges
who are also responsible for recruiting them and for supporting
their visa application.
- ABE has progression agreements with 75 universities
worldwide, of which 41 are in the UK. These universities accept
ABE qualifications for entry at different stages from first up
to the final year of Honours degree level courses and for exemptions
on Masters Degrees and MBAs.
- Individuals study ABE qualifications for a variety
of reasons. The most important reason given by students is that
they lead to university (25% of ABE students). The second reason
why students study ABE is that they are professional business
qualifications (22%), but the third most important reason is that
they are British qualifications (15%).
- ABE wants to have only genuine students studying
its qualifications at genuine colleges who return to their home
country (if studying abroad) after completing their studies. It
therefore supports the Government's objective to clamp down on
bogus students and bogus colleges and is happy to make its data
available to UKBA to support this objective. ABE has no evidence
that students studying its qualifications are anything other than
genuine. For example, attendance at its examinations is within
industry standards.
- The Government proposes restricting Tier 4 applications
to degree level courses (apart from Highly Trusted Sponsors).
However, the documentation does not make it clear what exactly
is meant by degree level and the definition is of critical importance
to ABE.
- ABE currently recruits about 7,300 students a
year who want to study in the UK at Level 4 and 5 at colleges
that are not Highly Trusted Sponsors (HTS). These students pay
on average £183 a year in exam and registration fees, and
so ABE is facing a potential £1.34 million loss of revenue.
Such a loss of around one fifth of ABE's income could not be absorbed
without redundancies and other associated financial cutbacks,
and even with them, it could threaten the survival of the organisation.
- Concerns over what appears to be a tiny proportion
of individuals who are abusing the system look like they will
lead to restrictions which severely damage, if not destroy, a
significant proportion of a business where Britain is internationally
successful. There will also be a knock on loss of business to
couriers, printers, accommodation providers and others. ABE is
one of these success stories with a threefold increase in exam
entries and student membership over a period of 10 years. Many
of ABE's ex-students hold senior positions in business, industry
and government in their own countries.
- British education is one of the country's economic
successes. However, it is an inter-connected system with the colleges
feeding students to the universities. There is no doubt that any
restrictions, or perceived restrictions, will damage the country's
reputation as an educational provider.
- Treat Level 4, 5 and 6 qualifications as degree
level. Failing that, treat all Level 5 and 6 qualifications as
degree level for the purposes of student visas and not just those
delivered by universities.
1. INTRODUCTION
1.1 The Association of Business Executives (ABE)
is an awarding body and membership organisation. ABE is accredited
by Ofqual and provides a range of business and management qualifications
which are on the Qualifications and Credit Framework (QCF).
1.2 It was founded in 1973 as a company limited
by guarantee and now has a turnover of more than £6 million.
It is based in New Malden, has 35 permanent employees along with
contracted examiners and other support staff. More than 50,000
people worldwide are registered as students studying for ABE qualifications.
The President is 'lateral thinker' Professor Edward de Bono, its
Chairman Dato Dr Tan Tiong Hong is a former government Minister
in Malaysia, and its ruling Council includes a former High Commissioner
and Ambassador, and university academics from several different
countries.
1.3 ABE's mission is to educate people in business
and management skills for the benefit of their country and themselves.
The majority of its students are in the less economically developed
Commonwealth countries in sub-Saharan Africa, Asia and the Caribbean.
It is particularly strong in countries such as Botswana, Zambia,
Tanzania, Malawi, Kenya, Trinidad and Tobago, Sri Lanka, Mauritius
and Malaysia.
1.4 ABE currently offers Certificate (Level 3),
Diploma (Level 5), Advanced Diploma (Level 6) and Postgraduate
Diploma (Level 7) qualifications based on the National Qualifications
Framework (NQF). With effect from the December 2011 examinations,
all ABE qualifications will be based on QCF and it will offer
Diplomas at Level 4, Level 5 and Level 6 in:
- Business Management;
- Human Resource Management;
- Marketing Management; and
- Travel, Tourism and Hospitality Management.
In addition a Diploma in Business Management will
be offered at Level 7. The qualifications share some common units
and so are very flexible. The prices for ABE's qualifications
are always kept as low as possible in order to maintain their
attraction.
1.5 These qualifications are taught by a network
of 534, mainly private, accredited colleges worldwide of which
190 are in the UK. ABE will only accredit a college to teach its
qualifications in the UK if the college has in turn been independently
accredited by Ofsted, BAC, ASIC or Accreditation UK. ABE does
not directly teach its qualifications, students are taught by
the colleges who are also responsible for recruiting them and
for supporting their visa application. ABE designs the qualifications,
provides the syllabuses, provides study guides and other support
material for students and lecturers, manages the examinations
and marking, and publishes the results.
1.6 ABE has progression agreements with 75 universities
worldwide, of which 41 are in the UK. These universities accept
ABE qualifications for entry at different stages. Thus the Certificate
entitles students to start Honours Degrees at year one, the Diploma
in year two, the Advanced Diploma in year three and the Postgraduate
Diploma provides exemptions to part of Masters or MBA level degrees.
1.7 Individuals study ABE qualifications for
a variety of reasons. The most important reason given by students
is that they lead to university (25% of ABE students). The second
reason why students study ABE is that they are professional business
qualifications (22%), but the third most important reason is that
they are British qualifications (15%).
2. GENERAL POINTS
2.1 ABE simply wants to have genuine students
studying its qualifications at genuine colleges who return to
their home country (if studying abroad) after completing their
studies. It therefore supports the Government's objective to clamp
down on bogus students and bogus colleges. ABE would be happy
to make its data available to UKBA in support of this objective.
The organisation's Founder Chairman, Lyndon Jones, has an honourable
history of campaigning against bogus qualifications. ABE has no
evidence that students studying its qualifications are anything
other than genuine. For example, attendance at its examinations
is within industry standards.
2.2 The Government proposes restricting Tier
4 applications to degree level courses (apart from Highly Trusted
Sponsors). However, the documentation does not make it clear what
exactly is meant by "degree level"courses and the definition
is of critical importance to ABE. ABE would contend that as Level
3 is "A" Level, then Level 4 should be considered as
degree level and indeed students with an ABE Level 5 qualification
receive exemption from the first year of the Honours degrees provided
by ABE partner universities.
2.3 A literal interpretation that only a Level
6 qualification can be considered a degree level, or even more
literally that only a degree taught at a university is considered
a degree level qualification, would have a devastating effect
on ABE. ABE currently recruits about 7,300 students a year who
want to study in the UK at Level 4 and 5 at colleges that are
not Highly Trusted Sponsors (HTS). These students pay on average
£183 a year in exam and registration fees, and so ABE is
facing a potential £1.34 million loss of revenue. Such a
loss of around one fifth of ABE's income could not be absorbed
without redundancies and other associated financial cutbacks,
and even with them, it could threaten the survival of the organisation.
In addition ABE students usually progress up through the levels
and so if ABE was only able to offer Level 6 in isolation it is
unlikely that it would continue to recruit the current numbers
(which would have further negative financial and employment impacts).
3. RESPONSES
TO AREAS
RAISED BY
THE COMMITTee
Whether the cuts should be limited to certain
types of courses (e.g. pre-degree level)
3.1 The answer to this question depends on the
definition of degree level. Does the question mean degrees offered
at universities, or any Level 6 qualification, or qualifications
at Levels 4 and above as ABE would suggest. It is important to
understand that the current system is a progression where one
level of qualification is a feeder to the next higher level. It
will be too big a step for many students to go straight to Level
6 without having studied at lower levels. In addition many ABE
students study for a Level 5 qualification in order to enter the
second year of university because they can save money as both
the total time needed and the overall cost is lower. Therefore
if all lower level qualifications were restricted there would
be fewer applications for degree level qualifications, with the
resulting loss of income for the degree providers and the economy
as a whole. Furthermore students who want a business qualification
in its own right to help them in their career, as opposed to an
entry route to university, would also no longer be able to come
to the UK to study.
The impact different levels of cuts might have
on the various sectors
3.2 As explained, in paragraph 2.3, ABE could
lose £1.34 million depending on what definition of degree
level is applied. ABE qualifications are taught by private sector
colleges. While all could offer Level 6 qualifications, and those
who are Highly Trusted Sponsors (HTS) could continue to offer
the full range of ABE qualifications, the loss of a major part
of their business would undoubtedly lead to college closures.
There will also be a knock on loss of business to couriers, printers,
accommodation providers and others. College closures will lead
to the direct loss of teaching and administration jobs (with the
resulting impact on local spending, taxation etc) and loss of
business to a wide range of suppliers. Moreover the closure of
colleges will lead to the loss of the feed of students to universities,
with a resultant loss of valuable international students. Thus
concerns over what appears to be a tiny proportion of individuals
who are abusing the system look like they will lead to restrictions
which severely damage, if not destroy, a significant proportion
of a business where Britain is internationally successful. ABE
is one of these success stories with a threefold increase in exam
entries and student membership over a period of 10 years.
The impact, if any, that reductions in student
visas might have on the UK's standing in the world
3.3 British education is one of the country's
economic successes. However, it is an inter-connected system with
the colleges feeding students to the universities. There is no
doubt that any restrictions, or perceived restrictions, will damage
the country's reputation as an educational provider. The direct
and indirect economic benefits to the country are well understood.
The reputational damage is less easy to quantify, but is real.
For example, many important individuals in business and politics
worldwide hold ABE qualifications (such as government Ministers
in Namibia, Malawi and Tanzania). These individuals are in favour
of British qualifications (as is the President of ABE's new Africa
Division who is the Prime Minister of Namibia) and they obviously
think better of Britain as a result.
Whether cuts in student visas would have any effect
on the decisions of highly qualified graduates to conduct research
or take up teaching posts in the UK
3.4 This is not an issue that is relevant to
ABE.
Whether the post study route should be continued
3.5 ABE supports the value of students studying
business in another country because it broadens their knowledge,
but believes that they should return to their home country after
their studies have been completed. We appreciate that this is
an important element in the overall package offered for a Masters
degree but, whilst students take ABE qualifications as part of
their progression towards a Masters degree, we do not have an
opinion on this issue.
The educational routes through which students
come to the UK to study at degree level
3.6 ABE's qualifications provide an important
route for international students to study at degree level in the
UK. ABE students frequently start at the lowest level and then
work their way up through the levels before going on to a university
which they then join the first, second or third year (depending
on the level of ABE qualification they obtain).
International comparisons
3.7 Other countries, such as Malaysia, have a
policy to attract as many overseas students as possible so any
restrictions will result in a loss to the UK of financial, wealth,
prestige and business development opportunities which will be
picked up by other countries.
4. RECOMMENDATIONS
4.1 Treat Level 4, 5 and 6 qualifications as
degree level. Failing that treat all Level 5 and 6 qualifications
as degree level for the purposes of student visas and not just
those delivered by universities.
January 2011
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