For-Profit Schools

What are the possible advantages of for-profit schools?

• Greater Efficiency. For-profit schools have incentives to be efficient and to eliminate unnecessary expenses.

• Increased Competition. To gain fees and attract students, for-profit schools are encouraged to offer quality educational programs and produce successful results.

• Responsive to Clientele. For-profit schools treat families as customers. Thus, each school must adapt to the needs and desires of its student population.

• Encourages Innovation. As with any business, a for-profit school benefits from offering new products. This induces for-profit schools to experiment.

What are the possible disadvantages of for-profit schools?

• Lack of Knowledge. A proven blueprint for operating a for-profit school does not exist. Thus, management teams may make costly errors.

• Misguided Focus. The fundamental purpose of a school is to educate, not make money. Essential school functions may conflict with realizing profits.

• Eliminated Services. For-profit schools may minimize or eliminate social services readily available in public schools, because of the large cost.

• Large Added Costs. The unique costs of running a for-profit school, such as promotion and marketing may serve to drain instructional resources.

What is the size of the for-profit school sector?

Since there are only a very small number of for-profit schools, they have had a limited influence on education. For-profit efforts have benefited from the charter school movement. Of the estimated 417 schools managed by EMOs, 320 operate charter schools (Molnar, Wilson, & Allen, 2003). Recent years have seen the development of large, influential EMOs, such as Edison Schools, Mosaica Advantage, and Chancellor-Beacon. But these corporations have struggled to show profits. There have been few systematic evaluations of for-profit schools and available reports show mixed results for academic achievement.

Where can I find out more about for-profit schools?

Information about for-profit schools located on the NCSPE website can be found at http://www.ncspe.org/inforead.php?mysub=4

For additional information on for-profit schools see:

Miron, Gary and Christopher Nelson. 2002. What’s Public about Charter Schools: Lessons Learned about Choice and Accountability. Thousand Oaks, CA: Corwin Press.

For additional information from internet resources see:

The Edison Schools website at:
http://www.edisonschools.com