How the Privatization of the Education Sector Has Turned Into a Lucrative Business
Education is a process in either an informal or formal setting that entails acquiring knowledge and skills in a particular academic field. Education is an indispensable asset that should be enjoyed by everyone. As such, most nations worldwide have realized that education is the key to its citizens’ economic prosperity and success and thus declared education as a fundamental human right. Therefore, with quality education, you are better placed to identify and take advantage of your resources and opportunities.
Understandably, the demand for quality education has significantly increased over the past couple of years. This is in part due to most employers requiring high academic credentials when hiring new employees. On the other hand, the increased demand for quality education results from the potential to enjoy a successful and prosperous future. However, with the increased demand for quality education, most governments worldwide are not able to cope.
As a result, there has been a steady increase in the number of privately owned learning institutions. The education industry’s commercialization is evident for higher education, where investors stand to benefit the most. Higher education is any form of learning you undertake after high school, i.e., college, university, graduate school, vocational training, etc. Successfully finishing a specific higher education course often symbolizes completing a significant milestone in your education and a step closer to achieving your career goals.
Completing a higher education course increases your chances of attaining your career goals, be it employment or starting your own business. Students have been known to go as far as hiring experts such as a science homework helper to ensure their academic success. Notably, you are not the only person who has realized the need to get a certification in higher learning. Entrepreneurs have identified the high demand for high-quality education as a gap in the market. They often invest heavily to maximize profits, thus increasing the number of privately owned institutions.
Compared to public institutions relying on subsidies and government funding, privately owned institutions are funded from the student’s pockets and often charge exorbitant fees to keep it running. For the most part, the fees charged by private learning institutions are justified. However, they are in direct contradiction with the need for equal access to education for all students. Not all students can afford to enroll in private schools and end up in public schools.
Reasons Why Private Schools Are Akin to Businesses
It’s understandable that learning institutions, regardless of whether they are public or private, require resources to keep running. However, there are discrepancies in how finances are handled in private institutions. There is often inconsistency in the revenue collected and the institution’s expenditure. This is comparable to a business model; whose main purpose is to generate profit.
In addition, with an increase in the number of privately owned learning institutions, they have adopted various marketing strategies to capture the interest of potential clients, i.e., students. These marketing strategies are often aimed at facilitating the institution to grow its profit margin by enrolling more students. Below are a few more reasons why private institutions of learning are comparable to businesses. They include:
- Frequent increase in the number of tuition fees and miscellaneous costs for students
With each passing year, students are burdened with more and more costs from private institutions. Often, this money ends up in the owners’ pockets with little to no effort in improving the quality of learning.
- Regular growth of privately owned institutions of learning
As these private institutions are growing at a fast rate, it is a clear indicator of its business orientations as it aims to grow to maximize the profit gained from running the institution. This is also evident in the increase in the number of private schools as more entrepreneurs want a piece of the pie.
- Focus on the institutions name and standing in the academic community
When students enroll in a private school, more often than not, they are attracted by the name of the institution instead of the quality of education offered.
In addition to the reasons listed above, most private schools offer students unrealistic projections about their future after college, such as you are guaranteed a successful and prosperous life. While the reality is the return on investment in college education is not what it used to be a couple of years back. Nonetheless, private institutions have done a great deal in supplementing public education. However, there has to be some regulation in how such institutions are run to ensure fairness in the learning process,