An Assessment of the Viability of Independent Schools

Abstract

A master model consisting of six different appendices has generated the necessary basic data in 24 various tables. These tables contain the influence that the four most important variables have on each other. The various appendices form the basis of the data presented and analysed in various tables throughout this chapter. Assuming a certain number of learners as the basis of every table, the four variables (the number of learners, the amount of school fees, the different salaries of the educators and the renting of building of the infrastructure) are viewed according to a specified learner-to-educator ratio. The empirical study confirms that it is possible for an entrepreneur to operate an independent school on a financially viable basis. Assuming that certain variables are held constant it is possible to measure the effect that other variables have on the basic financial viability. The entrepreneur should be aware of the danger of being held at gunpoint by the demands of the learners. The low enrolled numbers have a direct impact on the financial viability. In addition, the educator is an asset to the independent school and should be utilised to draw learners to enrol in the school. The entrepreneur must realise that a delicate management of this asset must lead to future salary increases for the individual educator. A high turnover of educational staff will increase the general perception of academic and managerial problems and will ultimately be detrimental to the financial viability. The various scenarios sketched in this chapter are meant to give the entrepreneur the proverbial food for thought concerning the possible solutions and the effect that they will have on the financial viability of operating an independent school as a business venture. The various tables presented within the scenarios bring to the forefront the basic problem that the entrepreneur faces: how realistic is it to increase the learners from 17 to 22 per educator, and, does the entrepreneur have any indication concerning the possible number of learners that will seek suitable education elsewhere when the school fees are increased?