The State of Microschooling

A new report lifts the hood on a growing sector

Last month, the National Microschooling Center released American Microschools: A Sector Analysis. The authors, Don and Ashley Soifer, surveyed 800 microschool leaders, making this the most comprehensive analysis of the sector that I am aware of.

What those leaders told them was fascinating. Some highlights:

· Microschools are micro in size. The median number of students in private microschools is 22 while the median number in public and public charter microschools is 36.

· The majority of microschool leaders are educators. Fifty-four percent of leaders stated that they were either currently or formerly licensed educators and another 32% stated that they were professional educators that were unlicensed.

· Microschool students come from multiple sectors. Forty-three percent of microschool students come from district schools and 9% come from public charter schools. Thirty percent are former homeschoolers and 9% come to microschooling from private schools.

· Microschools are inexpensive. Twenty-six percent of schools stated that they charge less than $5,000 per student per year. Forty-eight percent said that they charge between $5,001 and $10,000. That means 74% of microschools charge less than $10,000.

· Microschools are housed in a variety of locations. Thirty-nine percent of microschools operate in a commercial or non-profit space, 29% are located in a house of worship, and 17% are located in a private residence.

· Microschool leaders are interested in becoming accredited. While only 22% said that they are currently accredited, 80% of microschool leaders that they would be interested in a microschool-friendly accreditation.

· Microschool leaders need money. When asked what they need, the most popular answer by far (stated by 75% of respondents) is “funding sources.”

It is these last two data points that are of particular interest given other work being done in the space.

Last week, our friends at Stand Together Trust (along with Building Hope and the Beth and Ravenel Curry Foundation) launched the Microschool Loan Program. It will provide startup loans of $5,0000 to $50,000 to early-stage microschools to help get them off the ground. For school leaders looking to find that first facility, recruit parents, or purchase technology or curriculum, this could be a lifeline until ESA or other tuition dollars come in to pay bills.

This sector is replete with stories of founders taking out high interest loans, going into credit card debt, and scraping capital together in ways that is neither sustainable nor scalable. Reputable programs from stable organizations is a much better way to help.

But it isn’t just about startup capital. The Microschool Loan Program also has the stated goal of helping to professionalize the sector by encouraging sound business practices. In order to qualify for this funding, leaders need to have registered as a business or non-profit, have a business bank account, have a five-year financial model, liability insurance, no pending litigation, a signed lease, and verified enrollment. Requiring these basic building blocks will encourage founders to both think through and establish the kinds of systems and standards that small businesses need to thrive.

Stand Together is also exploring ways to help on the accreditation front. Last month, they announced a new partnership with Middle States (a national accreditor), the National Microschooling Center, Kaipod, and Getting Smart to create Next Generation Accreditation, what they are describing as “a faster, more flexible, more affordable process that respects school founders’ time, budgets, and models.”

For those 80% of microschool leaders that Don and Ashley identified as being interested in microschool-friendly accreditation, this is a possible pathway. Middle States appears open to flexibility in how schools demonstrate quality and a cost (annual dues of $650-$775 and a $500 site visit fee) that microschools should be able to shoulder. Stand Together is currently recruiting a pilot class of 10-15 schools to participate, and this could be a fruitful opportunity for schools looking to get accredited but who do not want to follow the traditional path.

To end back where we began, the state of microschooling is strong. While the center’s survey was not necessarily representative (it’s hard to know what the underlying population is to know if they got an accurate subset of it), it is large and extensive, with lessons for us to learn. It is also encouraging to see other actors in the space proactively addressing issues like startup funding and accreditation and trying to lower barriers for creation and growth. That problem solving attitude bodes well for the future.