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Main Reasons Why Business Invests in Education Industry


Contributed by Robert Everett
July 11, 2019



Ever since 1983, when President Ronald Reagan presented the famous report A Nation at Risk, the educational system has been under a reform. The President blamed the inefficient education for all problems in science, commerce, industry, and technological innovation. He hit the spot for Americans, saying the competitive countries were taking over these industries.

"If an unfriendly foreign power had attempted to impose on America the mediocre educational performance that exists today, we might well have viewed it as an act of war," - he said in the very introduction of the speech. Let's leave the manipulative approach aside for a moment. It's a thing for politicians. What we know for sure is that many people agreed with the President, and since then, the reforms began. The nation started seeing education as a business. Is that a good thing?

 

Competition - that's one of the main reasons for business investments, but the main issue as well.

Investors never allocate their resources for a cause just because they believe in it. They do it because they see the potential for returns. When a business teams up with a top school by offering scholarships or internships, they get access to the best future talent in the country. All other businesses from the particular industry compete for the top schools, so the companies have to present better offers.

But this state of mind creates competition within the educational sector as well. No business wants to invest in a low-quality institution. So high schools, colleges and universities do their best to offer better programs for their learners. Of course, that's a good thing. But for a school, being more competitive also means being more challenging. These institutions impose high standards and countless assignments to their students. This is why we have a problem: many students visit EduBirdie for assignment help. They purchase their papers, with the same business mindset that they are making an investment in their education. As schools get more competitive and more demanding, the students have no other choice but to turn to unethical methods for getting better grades.

 

By investing in education, companies invest in their own future.

The relation between business and education is strictly business. The schools gain more resources to improve the quality they offer to students. The businesses, on the other hand, invest in a more competent workforce that they could recruit in future.

In theory, this is how it works: businesses offer internships, so the students could gain hands-on workforce experience. This would prepare the students for the future workforce better than any theoretical knowledge would. That's one way how companies invest in education - by accepting interns and paying them for the work they complete. However, they also invest in educator training programs. It's the teachers who provide education for their future employees, so they have to target the root of the issue.

 

Social responsibility is another reason why companies invest in education.

Currently, Millennials are the generation with the greatest purchasing power on the market. Organizations from all industries are trying to target these buyers through their marketing campaigns. Millennials, however, are not the type of people who buy products or services just because the commercial is nice. They demand corporate social responsibility. A study called Finger on the Pulse found that 81% of Millennials want companies to be responsible corporate citizens. They want to see a public pledge to social responsibility. Millennials are not just after the promise; they will check on the companies they trust and they want to see annual reports on the projects they support.

When the company invests in educational projects with an intention to provide a better future for today's students, it immediately looks good in a Millennial's eyes. No matter how "corporate" this may sound, social responsibility is part of a brand's marketing campaign. It's no wonder why we're seeing countless articles with fundraising tips for new business owners. But we shouldn't see this as a bad thing. Although many companies have an agenda behind their involvement in educational projects, these sponsorships still matter. It's still money that gets into education and makes it better.

Apple, PNC, Cognizant, and many other U.S. companies invest millions in better education for future generations. Whether it's for marketing or from a genuine wish to help, the money injection still has the same positive effect.

 

Education and business go well together

HR managers in all companies know it: education is crucial for a successful hire. Even when they hire the most educated candidates, they still invest in additional training. But when they have access to a more skilled workforce, the expenses for additional training will be lower. Clearly, the results the performance of these employees will be better.

The lack of skills in the workforce costs corporations a lot of money. The fact that they are willing to invest in education of higher quality within their industry is a pretty lucrative education business decision.

There are issues with the high competition among universities, which imposes higher fees on students. But the benefits we get from involving businesses in education outweigh the negativity.

BIO: Robert Everett is a full-time blogger covering all kinds of topics from education and economy. Through research and blogging, he learned more than any school taught him. Robert is all about encouraging people to learn through unconventional methods.

 

Tags: education | business

 

 

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