education - kumar gaurav iim indore

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1 Kumar Gaurav IIM Indore Ignite Education Objective Idea for ensuring primary education accessible to masses Kumar Gaurav Gupta IIm Indore

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Page 1: Education - Kumar Gaurav IIM Indore

1 Kumar Gaurav IIM Indore

Ignite

Education

Objective

Idea for ensuring primary education accessible to masses

Kumar Gaurav GuptaIIm Indore

Page 2: Education - Kumar Gaurav IIM Indore

2 Kumar Gaurav IIM Indore

Snapshot: Status of Primary education

87.23 % schools are located in the rural areas

91 percent of the total primary schools are located in rural areas

Uttar Pradesh with highest no. of districts has highest no of schools

65.67 % are independent primary schools

83.14 % of the total schools are government run school GPI of 0.92 in Primary

About 48 % (15,791 schools) of the total schools without enrolment are the Primary schools

1.29 % primary schools have no teacher and another 16.58 % are single teacher schools

Pupil teacher ration of 76:1

Structure Of the total schools opened since 1994-95, about 68.28 % were primary schools and most of these also had their school building

71.31% primary schools have pucca buildings as compared to 9.47% having partially pucca and another 1.98 % kuchcha buildings

Have an average of 2.7 instructional rooms Least percentage (66.07) of good classrooms and 23.01 % classrooms needed minor repairs and 10.92 % major repairs 42 Students per classroom, higher than other types of schools

1.29 % primary schools have no teacher and another 16.58 % are single teacher schools 81.12 % primary schools have drinking water facility in school

Infrastructure

Source: Based on research done by DISE in 11,24,033 schools, 2006

Second Largest Education System in the World

Increase in Expenditure as % of GDP

In spite of the adoption of 'mission mode' to universalize

elementary education, the dropout rate

continues to be high

Page 3: Education - Kumar Gaurav IIM Indore

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Increase in Enrolment But Dropout remains high…

According to official sources, the dropout rate at the primary level (Class I to V) for girls is 33.72% and for boys it is 35.5%

Dropout rates are even more alarming at the elementary level (Class I to VIII) where 53.45% of girls and 52.28% of boys drop out of school

Page 4: Education - Kumar Gaurav IIM Indore

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Hence, Key Pain Points and Possible Options…

Poor Economic Condition

Low awareness among parents

Perceived Opportunity Cost is High

Lack of Community Pressure

Inadequate Facilities

Large disbursal of allocated Funds without any

supervision

Make it affordable: Micro financing could be one solution

Educate Parents

Complement primary education with vocational

training

Build Community Ownership, Community based Schools

Partner with an Entrepreneur /Private Investor

Collaborative Partnership with Private Player

Page 5: Education - Kumar Gaurav IIM Indore

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There has been already one business model…

Introduction Won the Social Enterprise track of the annual HBS Business Plan contest in 2003 3 Founders:

Harvard Business School MBA '03 students Raj De Datta, Arvind Krishnamurthy, and Meghna Modi

Genesis of Gyaana

Two observations Critical importance of education as the building block of any initiative to empower the poor and

the equally critical importance of available credit to allow poorer families to invest in their future

Absence of application of concepts of microfinance to the problems of education

Business Model Brokering microfinance loans to families in the service of keeping schoolchildren in the classroom Three Phases:

I Phase: Formal education from Classes VI – VIII

II Phase: Two years of vocational training

III Phase: Asking the children to pay back loans with accrued interest

Current Status: No information available on Internet

Case Study: Gyaana

Page 6: Education - Kumar Gaurav IIM Indore

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Proposed Solution

Objective

Solution for providing good quality primary education to the masses, at the lowest possible price

Proposed Solution

A chain of primary schools operating on collaborative model where all the stake holders have fractional ownership*

Entrepreneur

Government

Micro-Finance Organization

Community

*the focus is on providing quality education and reduce drop outs

Page 7: Education - Kumar Gaurav IIM Indore

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Proposed Solution: Key Characteristics

Fractional ownership of the trust that owns the chain of schools. Stakeholders involved:

Private Players Private Players

Brings money and operational experience Ensures there is transparency in operations Also ensures that infrastructure is well placed Owns majority of stakes

Government Government

Through Sarva Shiksha Abhiyan Initiative* would ensure that following regulations are followed:

It (society/trust) shall ensure that the school is run as a community service and not as a business and that commercialization does not take place in the school in any shape whatsoever. It shall ensure that the funds accruing from the school are spent for the benefit of the school and for its expansion.

Assists in development of school through both financial incentives such as subsidies in land etc and other operational helps such as recruitment of teachers etc Performs sanity check and prevents any wrong doing

Micro Finance Organization

Micro Finance Organization

Partnership to provide education loan through community lending or SHGs

CommunityCommunity

Even the small section owns some stakes This could be done through performing their bit , for instance some one can help in building toilets. The economic benefits from the same can be translated in stakes. This would develop a feeling of belongingness and would initiate cycle of educating a community at large about the benefits of education

Please refer to appendix slide

Page 8: Education - Kumar Gaurav IIM Indore

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Proposed Solution: Business Model

3 Stakeholders join and Build the school

School

Development Phase

Operational Phase

Microfinance organization gives education loan to parents of young students @ low interest rate

Education loan is used to pay school fees

Trustthat owns the

school

Trust pays salaries and other expenses

Government involvement ensures subsidies fees and other facilities

Teacher Training school operated in partnership with Govt. and private

player to prepare teachers from the same community

Hence, over a period of time this would become a self sustaining cycle

Even teachers comes from the same community hence, income generated is going

back in the system

Option to go for vocational

training

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Proposed Solutions

Target Segment

Based on the data provided by government, rural areas should be the real beneficiary of the proposed solution

Community based model inline with govt. initiative of Sarva Shiksha Abhiyan The model can also be replicated in backward areas of urban regions The fees would be in the range of Rs. 50-150*.

Benefits Affordable and quality education to masses Adequate facilities Ownership also ensures higher participation and

accountability Optimum Teacher to pupil ratio Efficient utilization of government funds Increase in self-confidence Community development

*Completely based on market benchmarks and may vary on calculations

Challenges

Managing multiple parties as owners may be difficult

Educating people to send their kids to school taking education loans may be difficult Novelty of idea may result in friction initially

Exactly a bottom of pyramid opportunity , hence high potential but would take considerable time to materialize

Exactly a bottom of pyramid opportunity , hence high potential but would take considerable time to materialize

Page 10: Education - Kumar Gaurav IIM Indore

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Proposed Solution: Pilot and Roll Out

List from DISE

As per the report “Elementary education in India: progress towards universal elementary education 2006-07 (2008), following states should be targeted:

Top Five Kerala, Puducherry, Delhi, Tamil Nadu, and Chandigarh were the top five performing States

Bottom Five Bihar, Jharkhand, West Bengal, Arunachal Pradesh and Assam took the bottom five places

Government Support

Enrollment Ratios

Market Feasibility

Pilot should be in Kerala and then expand to MP

Page 11: Education - Kumar Gaurav IIM Indore

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Appendix

Sarva Shiksha Abhiyan

An effort to universalize elementary education by community-ownership of the school system. It is in response to the demand for quality basic education all over the country

The SSA programme is also an attempt to provide an opportunity for improving human capabilities to all children, through provision of community-owned quality education in a Mission mode

Two Tier Structure