Entrepreneurs have become increasingly involved in the education sector through developments such as charter schools and supplemental education services under No Child Left Behind. On November 14, AEI’s Frederick M. Hess hosted a conference examining the prospects and problems faced by entrepreneurial reformers in education.

Hess introduced the conference with a look at how education has evolved over time, noting that originally the education system “was not designed or intended to provide excellent education for all children,” as is expected today. Demonstrating that the teaching strategies that once worked well enough no longer produce results today, Hess noted that only 70 percent of schoolchildren graduate on time, and only 16 to 20 percent of Latino and African-American students meet the basic requirements to pursue a college degree at their state universities.

Kim Smith of the NewSchools Venture Fund examined the ways in which entrepreneurs confront today’s challenges by competing against the static public school system, developing effective alternatives that can be replicated, and providing venues for different skills and mindsets.
 
Paul Teske and Aimee Williamson of the University of Colorado at Denver considered the constraints placed on educational entrepreneurs, including diminished funding for any specific venture that succeeds and becomes part of the larger education system, the bureaucracy of the public education system, and the “multiple veto points for education reform at the district, state, and federal levels.”

Patrick McGuinn of Drew University discussed additional impediments to entrepreneurship, including barriers to entry, inadequate access to financial capital, and a lack of human capital. Eric Adler of the SEED Foundation added that entrepreneurial reform is also difficult because schools constitute “an inefficient marketplace.”

Nina Rees of the U.S. Department of Education recommended that entrepreneurs become more engaged at the federal, state, and local levels; develop better lines of communication with education bureaucrats; and forge alliances with inner-city-renewal advocates. Jon Schnur of New Leaders for New Schools encouraged education entrepreneurs to utilize the knowledge management tools of business consulting firms to enhance efficiency.
 
Joe Williams of the New York Daily News categorized types of entrepreneurs achieving education reform: “fresh bloods” create programs like Teach for America that bring non-traditional educators into the field; “James Deans” deliberately break bureaucratic rules in order to spur change but are often criticized for putting their own interests above the education system’s; “Johnny Appleseeds” believe that investing in school leaders already in the system will create agents of change within schools themselves; “destiny grabbers” seize control at the school level and maintain standards by controlling the environment in which students learn; and “cooks using all burners” push for reform at all levels of the system.

Joel Klein, chancellor of New York City Schools, argued that the education sector should welcome entrepreneurship because “it is clearly a failing system, and as global competition increases, the failure will become more obvious and detrimental.” Rod Paige, former secretary of education, agreed and characterized education as “the only American sector that discourages entrepreneurship,” whose goal he described as simply asking, “Is there a better way to teach our schoolchildren?”

The research presented at this conference will be compiled, edited, and published in a book by Harvard Education Press in fall 2006.