Fundacion Paraguaya Educationthat Paysfor Itself

Education that Pays for Itself:

The Financially Self-Sufficent School Model

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Financially Self- Sufficient School Model:n Classroom

instructionn Practical experience

running commerciallysuccessful on-campusenterprises



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Purpose of School Enterprises

1) Training platformFor students to acquirepractical & entrepre-neurial skills in demandin real markets

2) Income-generationTo cover school operatingcosts & ensure long-termfinancial sustainability.



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Measures of success:

1. Graduates: 100% are productivelyengaged within 4 months of graduation



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Productively engaged

n Responsible job in modern sectorn Started own business, with own business plan &

line of creditn Teaching at another agricultural schooln Working as a rural extension agentn Entered university



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2. Financial Self-Sufficiency:

US $ 2003 2004 2005 2006 2007 2008Income 42,814 45,182 97,434 233,601 253,016 336,112

Expenditure 199,239 223,261 277,993 316,110 250,710 323,931

Surplus/Deficit -156,424 -178,079 -180,559 -82,510 2,306 12,180

% Self-Sufficiency 21% 20% 35% 74% 101% 104%

School income covers 100% of school operating costs,including depreciation



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Examples of on-campus enterprises:

Bio-Intensive, organic garden



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Dairy & Milk Processing Plant



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Small livestock



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Roadside Store & Restaurant

Rural Services:



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Hotel & Conference Center

Rural Services:



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Rural Services:

Outdoor Education Training Workshops



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How to integrate education& income generation?

Business Plan for Learning & Production

Key Tool =



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Basic Steps:

1. Estimate program expenses:

Teachers salariesFood for students & teachers

+ Electricity & water, etc. etc.=



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2. Define competencies for type of qualifiedlabor to be trained rural entrepreneurs.

Calculate break-even point

Keep accurate

records

Providegoodclientservice

Communicate by email

Vaccinate

livestockUseorganicfarmingtechniques

Add value to production



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3. Decide which income-generating activitiescould teach those competencies .

Chicken coop?

Rural hotel??

Road-sidestore?? Fish processing ??

Ornamental plants??

Rural areas :

Coastal areas:

Boat & motor repair??

Urban areas:

Catering ??

Eco-friendly construction ??

Eco-tourism ???Boat trips??



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4. Consider:Can our school establish suchenterprises, with the human, financial,physical resources at its deposal?



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5. Develop a standardbusiness plan for eachschool business underconsideration.

Will it be profitable?



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6. Consider:Are there markets for those products& services ?

Can our school compete?



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7. Establish schedule of classes & practicalactivities that meets production &educational needs.

n Section A:Classroom Activities6:00 Campus clean-up7:00 Breakfast8:00 Math class9:00 Plant production10:00 Language Arts11:30 Lunch

n Section B:Practical Activities6:00 am Feed animals7: 00 Breakfast8:00 Organic Garden10:00 Mechanics/Electricity11:30 Lunch



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8. Evaluate results being achieved:

Competencies beingacquired vs.

Training goals

Financial results of eachenterprise vs.

Projected production,income & expenditure



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9. Continuously adjust activities in classroomand field in response to market signals

Example:Cotton is notprofitable forschool or theParaguayansmall-holder;let s stopteaching &producing that.

Example:Not all the school´sproduce is selling atorganic market; let swork harder withstudents on how todisplay produce &interact withshoppers.



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Tips:1. Maintain daily records & controls2. Keep separate accounting for each enterprise3. Make teachers responsible for income

generation4. Give responsibility for whole cycle (planning -

production- marketing)5. Seek market niches, value-added, diversification6. Offer financial incentives for reaching goals, if

possible.



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Educational impact:

Example:Decision to stopteaching cottonproduction due tolack of profitabilityfor school & smallfarmer.

1. Curriculum remains market-driven



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2. Teachers develop ownentrepreneurial skills &mindset

Example:Sale ofschooltractor



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3. Encourages innovation

Examples:Hot chilipowderSucklingpigs



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4. More efficient use of school resources

Example:Student dining

pays market pricesfor products fromthe chicken coop,organic garden &other enterprises.



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Where else could there be afinancially self-sufficientschool?



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Anywhere…

Rural areas… urban areas….coastalareas…. highlands…. lowlands… etc.



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Third AnnualConference onEducation That PaysFor Itself

Yachana School,EcuadorDecember 8-10, 2009

For information, see:www.teachamantofish.org.uk/conference

You’re invited!



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Thank you!

www.fundacionparaguaya.org.pywww.teachamantofish.org.uk



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Fundacion Paraguaya Educationthat Paysfor Itself

Technology

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