It is an argument that virtual education advocates hear over and over again: Applying open marketplace principals to K-12 education won't work because private corporations will put profits over the best interest of kids.
I hope my new report, written for the American Enterprise Institute, Beyond Good and Evil: Understanding the Role of For-Profits in Education through the Theories of Disruptive Innovation will put this misguided concept to rest.
Many in public education assume the worst about for-profit corporations, arguing that they are money-grabbing entities that will shortchange the public good if it means increased profits. Critics see no place for for-profit providers in American education. Supporters view for-profits as a force for good that can harness the profit motive to attract top talent and scale quality in public education. The government often perpetuates these divides by drawing lines in the sand of what activities companies can and cannot do based on their corporate structures. Despite these views on for-profits, however, the reality is different. Policymakers, officials, providers, and other members of the debate would do well to keep three key points in mind:
- First, for-profit companies are not inherently good or evil. Rather, these companies do what their customers offer incentives to do--not much more or less.
- Second, there are far fewer inherent and predetermined differences between for-profit companies and their nonprofit counterparts than many assume. Both for-profits and nonprofits have business models, and there are many examples of corrupt nonprofits.
- Third, the biggest inherent differences between for-profits and nonprofits stem from their fundamental corporate structures, which determine what they do with their profits--and thus affect their ability to attract capital and scale--as well as what opportunities look attractive.
Online learning advocates regularly have to wade through the misconceptions about for-profit education companies. But the K–12 online learning world presents have prime examples of what works. Two of the more successful companies, K12 Inc. and Connections Academy, are highly motivated to do the jobs that their customers pay them to do and deliver a quality education.
Click here to read more about my report, and for a link to a pdf of the complete report.