Most educational entrepreneurs rely on personal funds to finance their projects and lack of funding is a major barrier. While competition from traditional public schools is common, most entrepreneurs are only slightly or moderately concerned about competition. The top three barriers entrepreneurs face are lack of funding, state regulations, and lack of marketing expertise. Money concerns weigh heaviest on entrepreneurs' minds.

1. SURVEYING EDUCATIONAL
ENTREPRENEURS
The Headwinds and Tailwinds to Building
New Educational Enterprises
edchoice.org/EntrepreneurSurvey
HIGHLIGHTS FROM

2. EDCHOICE.ORG
As we emerge from the pandemic,
it is an opportune time to take stock
of exactly where the world of
educational entrepreneurship stands.
Where is entrepreneurship succeeding,
and where it is struggling?

3. EdChoice partnered with Hanover
Research to survey 59 educational
entrepreneurs—including those who
are creating new schools with new
learning models, those who are creating
curriculum or tools, those who recruit
talent and more.
EDCHOICE.ORG

4. HERE ARE THE RESULTS
EDCHOICE.ORG

5. Most educational entrepreneurs invest
their personal funds into their projects.
EDCHOICE.ORG
0% 20% 40% 60% 80% 100%
What types of funding do you access for your project? Please select all that apply. (n=59)
Personal funds
Private tuition
Funds from friends or family
Philanthropic funding
Accelerator projects/start up grants
69%
51%
37%
34%
34%

6. Lower-income respondents (those
earning less than $50,000 per year)
were more likely to say that they
received funds from friends and family,
philanthropies, accelerators, and
grassroots or community sources.
EDCHOICE.ORG

7. Higher-income respondents (those earning
more than $100,000 per year) were more
likely to say that they received funding
from partnerships with corporations,
corporate sponsorships, venture capital
firms, and business loans.
EDCHOICE.ORG

8. Most educational entrepreneurs set up shop
in the states where their team members live.
EDCHOICE.ORG
0% 20% 40% 60% 80% 100%
Why did you chose the state selected above to operate in? Please select all that apply. (N=56)
It is where members of our team live
Our target consumers live there
Favorable regulatory environment
Availability of philanthropic support
75%
23%
14%
11%

9. Lack of funding and resources, issues with public
perception, and a lack of physical infrastructure are
the top three barriers for educational entrepreneurs.
EDCHOICE.ORG
0% 20% 40% 60% 80% 100%
Which of the following [do you/did you] consider to be barriers in your entrepreneurial career
Please select all that apply. (n=59)
Lack of funding and resources
Public perception
Lack of business knowledge/strategy
Lack of people on your team
73%
34%
31%
29%
27%
Lack of locations and physical infrastructure
to support your...

10. But funding, state regulations and marketing/
communications expertise are the top three most
influential barriers educational entrepreneurs face.
EDCHOICE.ORG
0% 20% 40% 60% 80% 100%
Lack of funding and resources (n=43)
State-level regulations/policies (n=15)
Public perception (n=20)
Lack of business knowledge/strategy (n=17)
Lack of marketing and communication (n=16)
44% 28% 26%
40% 27% 20% 13%
15% 50% 30%
12% 53% 24% 12%
38% 25% 19% 19%

11. Though traditional solutions like public schools are
the most common type of competition for educational
entrepreneurs, most respondents seem unbothered.
EDCHOICE.ORG
0% 20% 40% 60% 80% 100%
How concerned are you about competition in your entrepreneurial sapce? (n=58)
Not at all concerned Slightly concerned Moderately concerned
Very concerned Extremely concerned
60% 24% 12%

12. Our top three takeaways?
EDCHOICE.ORG
1. Money weighs on most educational
entrepreneurs’ minds.
2. Competition isn’t the barrier these
entrepreneurs are most concerned about.
3. We must be thoughtful about not just what
barriers entrepreneurs face but where and when
they face them.

13. One note of caution: This survey had a small
response rate. That said, this survey did
produce an interesting sample of respondents.
Women and lower-income entrepreneurs were
more likely to respond. More than 80 percent
were seasoned educators with 10 years of
experience or more. If we want more folks that
fit those demographics to become educational
entrepreneurs, there are lessons to learn here.
EDCHOICE.ORG

14. For a deeper discussion of these findings,
download the full report free at
edchoice.org/EntrepreneurSurvey
To share your feedback,
email research@edchoice.org
EDCHOICE.ORG