The Budget has pegged an outlay of Rs 79,685.95 crore for the education sector for financial year 2017-18, up from Rs 72,394 crore in 2016-17—a 9.9 per cent rise.
India is witnessing a huge shift of paradigm in Education business sector. Edupreneurs are multiplying on everyday basis, but how many of them are actually making their bug dream come true!
The Budget has pegged an outlay of Rs 79,685.95 crore (US$ 11.952 billion) for the education sector for financial year 2017-18, up from Rs 72,394 crore (US$ 10.859 billion) in 2016-17—a 9.9 per cent rise.
The IBEF study says at present, higher education sector witnesses spending of over Rs 46,200 crore (US$ 6.93 billion), and it is expected to grow at an average annual rate of over 18 per cent to reach Rs 232,500 crore (US$ 34.87 billion) in next 10 years.
India and Germany have signed an agreement on vocational education and skill development with a budget of US$ 3.37 million, which will help create and improve cooperative workplace-based vocational training in India’s industrial clusters.
Here are some common challenges, which edupreneurs face in their startup journey:
To run a startup successfully, one needs a brilliant idea, dedication, hard work and perseverance along with investors and funds.
Even though the idea is good and the business plan explains the entire plan briefly, some banks and investors do not the buy the idea.
Many edupreneurs are forced to drop the idea due to lack of faith, because the investors do not want to take the risk of trusting the fresh idea or businessman, upon the already established brands in the market.
Moreover in the initial stages, when one constantly faces rejections and criticism, it tends to get a toll on their confidence and hence forth the downfall swing comes easy.
2. Uneven distribution of Investment:
To start an education business is not a cake walk; it requires a lot of investment.
No matter how good the idea is, a huge amount of fund goes in turning it into reality like from infrastructure to marketing and setting up the entire system flow.
Often the edupreneurs miscalculate or underestimate the cost and end up in spending too much in infrastructure and are left with no investment when it comes to marketing.
Marketing too requires a huge amount from making brochures, ads and publishing the pamphlets to posters and then promoting them on different mediums.
3. Trust Issues:
There are a lot of well established education institutions, which have been running from generations.
Thus when it comes to taking chances with the future of the children, parents prefer to go with the established ones upon the fresh ideas.
Many online edupreneurs face the challenge as online frauds and scams are very common and people find it hard on trusting someone who is sitting behind the screens.
Parents want the best education for their children, but it is difficult for them to let their hard earned money flow in some scam or education racket going on the popping education businesses on day-to-day basis.
Vamsi further added that, “In India, e-learning and tutoring is still a very recent occurrence. Parents and students in most parts of the society still believe in the traditional classroom teaching – the one-to-many model. Breaking this mindset and highlighting the importance and effectiveness of a personalized teaching, was one of the major hurdles.”
4. Hiring Wrong People:
According to Chan Huang Yee, executive Director, I Can Read, “It’s difficult to find people with same level of dedication and passion as you because ultimately it’s your own business. We’re very careful with selection of our staff and have high expectations from them as we have of ourselves. It’s not easy for you to find and train the staff with the kind of caliber we want. Our staffs start their career with us as teachers and then progress into business. We have a tradition of grooming from within.”
Thus hiring the people, who share the equal amount to dedication as the edupreneurs is difficult and many end up hiring the wrong people, who either back stab them or do not help much in building the brand, as the edupreneur had planned.
Becoming an edupreneur is not a short term investment, not less than 20-25 years, but it can be the most promising and profitable venture if executed properly.