Swedish school crisis just continues to get worse - Private schools are now 25 percent more likely to go bust
Wednesday, 21 August 2013
Swedish private school system has been hailed by the likes of the UK as
models to improve their own failing school system. However, the problem
here is that the Swedish private school system is failing as most of
the companies running these schools are going bust day by day.
According to a new report by the Swedish business daily Dagens
Industri, more that one in fours private school authorized to conduct
education business in the country is reporting financial distress,
writes Dagens Industri on Wednesday.
In May when the private school provider JB Education went bankrupt, it
was thought that was a one off. However, it now looks like the school
business is as bad as one could not have expected.
Credit Company UC has examined 129 independent schools with a license
to conduct school business in Sweden and founds that one in four
companies in the education business suffered losses last year.
Meanwhile, the risk of bankruptcy with the past five years was found to stand at 2.5 from 1 percent.
"A bankruptcy risk at nearly 2.5 percent is high. The risk of
bankruptcy within private education branch is now 25 percent
higher than average risk for all companies in Sweden, "says Roland
Sigbladh, Marketing Manager at UC to Dagens Industri.
"Sweden has had declining pupil cohorts between 2010 and 2015 with 25
percent fewer high school students. It affects all players negatively.
The second factor is the 2011 form colleges where practical training
were favoured did not lead to higher demand for higher education. Since
the fall of 2013, the vocational students were allowed to automatically
gain access to university studies again, "said Peter Moller, of venture
capital Company, FSN partner, to Dagens Industri.
Therefore, the deal of the Swedish school model is not bad but the
changing student landscape and the evolving job market situation is the
driver. In addition, the fact that Sweden is naturally competitive
irrespective of who runs the school means that private schools have not
gained an edge over state run schools.
Environments where there is management dichotomy - efficiency is seen
mostly in the private sect could benefit more from this system.
by Scancomark.com Team