On-Going Education, Business Presentation and the Flow of Entertainment

Some business presentation consultants and many on-going education seminar teachers warn about the flow of entertainment in teaching. It is important to make learning fun and using visual equipment in a classroom setting makes sense to pique the curiosity of the participants. But be careful not to over do it the experts say.

Even those who give business presentations think about the over use of entertainment visuals, as they want to sell a concept, service or product not dazzle everyone with free-entertainment. Presenters must have a clear understanding of their mission, whether it is to sell something, teach something or enlighten someone. Once the message is lost all is lost and sure it was entertaining, but you have defeated your entire purpose.

Psychologists often say that The flow of “Entertainment” does somewhat curb the human appetite for learning and I believe that this is because they do all the thinking and your brain goes into hibernation. But, we know from fMRI scans on TV watchers that like a Starbucks Mocha Frappachino Caffeine rush there is an immediate spike for about fifteen minutes.

So, if you can spike the awareness for 4-5 minutes (TV news segment trick) then take them into your learning system, slow them down so to speak and make them think and ponder the use of this tool in groups and bring them back again, which is often done at small business symposiums then you do both? Visualization does not have to be entertainment completely, but humans do enjoy visualization.

I hope this article propels thought and proper planning in your presentations in 2007. Our goal is simple and that is to assist you in your quest to be the best.

Online Education Business – A Good Home Based Business Idea

A good area to do online business is in the area of education these days. With the world economy going global, it is real time to tie up education with the online bandwagon. Online education business is not new on the web and it’s been around for a while. The idea is to get something different.

A website that offers many facets of education is a business worth looking into. The modern world sees large numbers of students on the move, either to enroll into school or university. This number is going up by the day and trends indicate that the numbers could only get larger. A website that takes the headaches away from the parents could be the theme around which this business could operate.

Such an online business could act as a primary source for student recruitment and getting them enrolled into schools. It could be wise to start such a business with schools as these require less paperwork and formalities. Whether one starts off with the primary or the secondary is left to debate. It may be good to go the whole way but, one needs to identify some good schools and have a tie up with them. In this business the money comes from the students as well as the schools.

The money is reasonably good and a regular turnover of students could bring in handsome returns. Once again in this business too there is no big capital investment but, the thinking and it would be nice to allow and see the business grow slowly. After all in such businesses, word of mouth brings in new customers. It may also not be a bad idea to keep the school tie ups limited and not to expand on such a scale that it creates a sense of competition among the clients themselves.

Single Mom Grants – Education, Business and More

There are many different types of grants available for single mothers. There is financial aid available that can help her go to college, start a business, pay off debt, and more. In 2009 there was said to be 1.4 trillion dollars just waiting for someone with a plan to claim.

A good place to start when look for any type of assistance is grants.gov. Their motto is “Find. Apply. Succeed.” This is a searchable site when you can find and apply for government money. Free funds are out there, all you need is a plan to succeed.

If you are lucky, you may live in a states that offers a business grant specifically for mothers raising children on their own who wish to start a business. To find out, inquire with your areas unmarried mother’s resource center. They should be able to tell you about specialized funds that you could be eligible for. Another benefit is that they might even be able to help you meet up with other women owners who have received the award in the past. From them you could get tips and guidance.

Before you apply for any program you need to make sure you meet the requirements. Why waist your time and resources when you know ahead of time that you cannot even be considered. You will always need a social security number and to be a valid United States Citizen. If you are applying for money specifically for a parent raising children alone, you better fit that mold. Most time you will need to have graduated from high school or have passed the GED test. If you are applying for tuition assistance you need to have been accepted and perhaps even enrolled at a university. Some funds are specifically for people in certain careers, religions, or of certain ethnicities. Make sure you read all the details before applying. Lying on any application is considered fraud.

If you have always wanted to be your own boss and start up a business there may be funds out there for you to do so. Women wishing to go to college are usually able to find financial assistance easily. No matter what you want to do, all you need is a plan to start applying for assistance.

Create Outstanding Postcard Designs Fit For Educational Businesses

Businesses that fall under the educational system aim to inspire their market through designs that veer towards dedication, achievement, and direction. To market this service to targeted students, postcard printing and mailing services could very much help in capturing the exact audience with the right process and promotional materials.

Undergoing postcard printing services would be of much help for any business for these companies have more than enough tools and templates to suit your needs and purposes for your design and layout. But it would still be good to think of a clear picture of what you want your color design concept to work around on.

o Colorful graphics and photos suit early child education: Setting a lighter tone into your postcard design for younger students is more appealing for you would want this age bracket to perceive school as fun. Adding on inspirational photos such as trees, birds, colored pencils, or any object that can signify growth will somehow get your recipients in high spirits that they would eventually want to enroll in your school.

o Use a more subdued color combination for older students: Getting into universities is a serious choice to make. As a marketer promoting your services, through colors, you can show that you are serious with your dealings in preparing students for the real world. Colors such as black, green, maroon, or blue are the usual tints used for schools; thus, applying this to your postcards will make your readers take your collateral and business seriously as well.

In much more serious businesses like schools, the colors you choose for your promotional tool say a lot about what you are projecting. Same is true when it comes to professional-looking materials that undergoing postcard printing services to upgrade your postcards and campaign strategy will generate better responses.

What Things An Entrepreneur Should Consider Before Starting An Online Education Business

Distance education is the name of a media for the online students to be educated. As the educators-college students head to head connection is occurred here a few, so a college students who would desire to get himself admitted in this online institution, s/he might want to have some manageable and up-to date services from that universities. This sort of requirement may be the different student to student, as the learners are from all over the globe with distinct types of curiosity and ethnic behaviors. But as the learning is concerned and getting college degree from an accredited online school is the principal mission; some common expectancy is what we can assume and every online schools and online college or university should provide these opportunity to the college students for making themselves feel good. So, what are these expectations that an online student can have and as a business person what the things you must have to consider before starting an online education business? Well, check these out now!

Develop a User-Friendly Instructional Website

Yes! Developing a user-friendly web page for the students is very essential endeavor that we have to list it in the best of others. Web-based School’s official website should have to be quickly navigational and easily search-able to acquire particular material. It’s really worth mentioning that, all the students who get online college degree from online college are not geek in Technologies. Some students find themselves in mess while they use the standard features of massive online world. So we should consider this thing. Producing a confusing web page for the long distance learning students wouldn’t be effective thus it would be quite unpredicted in long-term. Additionally, students don’t expect such type of web-pages from their online universities.

High Quality Tech-Support

Your Online Learning Business will be a mild looser at last if you don’t care about to arrange the high quality tech assisting program. Assisting the college students with higher quality technological devices is the one and only way to attract the scholars and have them in your school till they are graduated. Disrupted words and other media communications make an odd effect upon the involving professors and students and online university itself.

Use User-friendly & Free of charge Online Instruments

Work with a lot of social networks and free online resources to enrich the brainstorming practice for the students. Students love to make use of free stuffs as they are just students. Utilize Google Reader, Google Doc, Skype, Facebook and other free web-based equipment in constructing up conversation with scholars.

Provide Exceptional and Accredited Online Degree

Well, exactly how many special online lessons you are supplying for the students that very few other universities have provided? Just consider it deeply. The much more special & unique you can be with your provided lessons; the more scholars will be involved in your online institution.

Flexibility of Courses Durations

The programs that your online college offers should be flexible in such way that a scholar who is in a full-time employment would be able to take any of your available training as per their free time schedules. So, don’t restrict your learners to take programs in a pre-defined times. It’s better to make a schedule of courses that are planned with flexibility which would be really quick to take for any students from any region of the world.

I am sure, if the above mentioned things a new entrepreneur consider; s/he will be succeed on Online Education business.

How to Write an Education Business Proposal

Do you have an idea for a new educational program or service? Maybe you want to apply for a government grant for an after-school program for middle school kids, organize a private high school, or develop a network of tutors for hire.

How are you going to get the money you need and explain your ideas to the influential people who can make it happen? The best way is to master the art of writing a proposal.

If you are replying to an RFP (Request for Proposal) or applying for a specific grant, you need to follow any instructions specified in the RFP or grant application as precisely as possible. An RFP response typically requires combining government agency forms with topics you need to write from scratch – based on what the RFP asks you talk about.

All proposals follow a basic structure: introduction, the recipient/client-oriented section, the description of proposed goods and/or services, and then the proposal writer/supplier-oriented section. The content of each section will vary from one proposal to the next, but this sequence of sections should stay the same.

Let’s break down those sections further. The introduction section is the shortest. The very first thing you’ll want for your proposal is a Cover Letter. A Cover Letter should be brief, and it should contain the following four elements: a brief explanation of who you are, a statement about why you are submitting this proposal at this time, a statement of what you want the reader to do after reading your proposal–call for a meeting, sign the contract, etc., and all your contact information so the reader can easily call you with questions or to accept your proposal.

The very first page of your proposal package should be a Title Page–just name your proposal something appropriate, like “Advanced Science Seminars Offered for the Jacobi School Gifted Program” or “Proposal to Create a New Charter School in the West Valley School District.” Next, if your proposal is long and detailed, you may want an Executive Summary or Client Summary Page, which is a summation of the most important points you want to make, and a Table of Contents to help readers easily see the contents and navigate through the proposal. That’s all for the introduction section.

The next section should be focused on the proposal recipient or client. Depending on what you are proposing, the readers you want to target might be members of a grant committee, potential students, parents of students, teachers, school administrators, a loan committee, or a governmental organization. It’s important to consider them carefully, and tailor your information to them. What do they want to know? What concerns might they have? Are there scheduling or budget restrictions? At the very least, this client-oriented section should have a Requirements page that summarizes what they have asked for, or what you believe they need. You may also want pages like Schedule, Deadlines, Limitations, Budget, Goals, Considerations, Special Needs, and so forth, to describe in detail your understanding of what the client needs. This is not yet the time to brag about your proposed program or your organization. Keep this section focused on information about what the client wants or needs.

The next section is a description of your ideas. Be sure to match them up with the previous section, explaining how you can address the client’s needs, how the client will benefit from your proposed program, and what your proposal will cost to implement. Don’t use generic sales jargon. Instead, be as specific as possible about what you plan to do. This section could contain a wide variety of topic pages, like Classes, Equipment, Schedule, Staff, Venues, Tutoring, Testing, Mentoring, Evaluation, and so forth–you’ll include whatever you need to thoroughly describe your proposal. At a bare minimum, you’ll want a Services Offered, Benefits, and a Cost Summary page in this section.

After you have thoroughly described what you want to do and how much it will cost, it’s time to tell the proposal readers all about you in the final section. What makes you or your organization qualified to take on this job? It’s not enough to simply say “I can do it” or boast about how smart you are. Keep in mind that it’s always best to provide evidence or testimonials from other parties than to do your own bragging. Do you have special Training, Certifications, or Education? Do you have an extensive Company History, a long list of Clients, or years of Experience in the field? Have you won Awards? Do you have Testimonials or Case Studies to offer to show how you have been successful in the past? Include any information that helps persuade the clients that you have the knowledge and professionalism to carry out your proposal promises.

At this point, you will have completed the first draft of your proposal. Congratulations! Now for the finishing touches. Have a qualified proofreader or editor read through your draft and fix any grammatical or spelling errors. It’s always best to enlist someone who is not familiar with your ideas to do this. That person is much more likely to catch errors and ask important questions than someone who knows your proposal well. It would be especially embarrassing to submit an error-ridden proposal for an education project, wouldn’t it?

After the words are perfect, make sure each page looks good, too. You might want to use visual details like splashes of color in titles or special bullet points to add interest, but keep the overall look professional.

That’s it! Print out your proposal or package it into a PDF file, and deliver it to the client or committee. Be sure to use whichever delivery method was specified by the client, or deliver it in the way you believe will most impress the recipients (email, upload to a web server, print and mail, etc.). Remember, you want your proposal to succeed, not end up in the heap with a hundred others, so it might be worthwhile to hand-deliver it or use another special method. Then, after a reasonable period of time, follow up with a phone call to make sure your proposal was received and give the clients a chance to ask questions.

After you have written one proposal, you’ll find that the next one is easier and faster to write, and that you can re-use a lot of the same information in multiple proposals. But it’s important to customize each one to the specific recipient; that’s the difference between proposal writing and mass marketing.

Proposal writing packages can make your proposal writing and formatting easier. A pre-designed proposal kit will include hundreds of templates, including all the ones mentioned above. You can find a page for almost any topic. The writing and details to include are up to you, but each template in a kit includes examples and instructions that remind you of typical information for that topic, so you’ll feel like you have a guide throughout the writing process.

Use a professionally designed proposal kit, so your proposal will look great, too. You can find kits with design themes or insert your own company logo. Make sure to use a kit that includes a large collection of sample proposals, too, including some education-oriented ones. Sample proposals give you ideas of contents and looks for finished proposals. You’ll find that a pre-designed proposal kit gives you a big head start on your first proposal.

Planning An Online Education Business With E Learning Software

It sounds quite clich├ęd to say that the Internet has infiltrated each aspect of our personal and business lives, but there it is! You cannot deny facts just because they have been repeated to the point of boredom. Today we can buy everything online – from a pair of socks to a limo! It is no wonder that more and more people are carrying out their affairs through their computers from the cozy comforts of their homes, and even getting an education online is no exception.

There are many online courses out there, which are popularly known as e-learning courses. If you already are running an educational institution that has been recognized by your government, then you should seriously think of entering into the online education business, which is growing by leaps and bounds with each passing day. You will need to know about the government rules that apply, and try to get your online institute accredited. There are many accrediting bodies, but you will have to find out which organizations are valid for accreditation within your area.

Once you get your online institute accredited, you must plan out the courses that you would impart. Of course, you will have to put a team of able teachers at your disposal. If you are planning to use the faculty from your physical educational institution, then you will need some special staff to translate their course material for online purposes. Each and every course normally taught in educational institutions can be taught online too, but the course will definitely need to be reworked to be feasible for online study.

You can use the large amount of e-learning software tools available out there. These tools will help you design courses for your online education programs. These software tools will help you to arrange all your text and multimedia files in compatible versions for the Internet, and will also break them into modules and lessons that you can impart to your online students. Some of this software has an inbuilt tracking system too, by which you can keep records of what lessons the student has already learned, so that there is no leakage of your online courses to unauthorized people.

An important aspect of online education is conducting the tests and the assignment submissions. Online students are also meant to submit worksheets and maintain journals, as well as get tested at the end of a particular portion of the syllabus. E-learning software can be configured in the way you want to conduct all these tests and assignments, so that you can keep track of how your students are coping up. The e-learning software will also help you to assess the online submitted papers and worksheets of all these students, which could be quite a daunting task as the number of students increase on your academic roll.

Hence, investing in e-learning software is not a bad idea at all. Most educational institutions are still quite conservative about going online, but it is high time now to accept that that’s the way the world is going.

Online Business Games For All Ages

When it comes to online business games, employers have myriad choices as to how to convey real-world business examples and lessons to their employees in an accelerated format that also can be a lot of fun. Maybe not so coincidentally, business games geared towards kids also present realistic portrayals of actual business challenges and methods needed to overcome them.

In this context “fun” for employees certainly does not mean time frittered away. In the course of day-to-day employment there are many skills that an employee may not use, much less develop. Over time valuable capacities will naturally become atrophied through disuse. Business games can be used as an aid to help to keep skills sharp by periodically having employees attend educational sessions that will revive abilities that the employee can then apply to the job.

Simulation games are not at all limited to flying virtual airplanes or engaging in artificial warfare. The games that have real educational value bear incredibly close resemblance to actual situations and require decision-making skills that can very closely mirror challenges that one faces, at any level on the organization chart.

Online educational business games for children are hugely beneficial as they prepare to enter the workforce in today’s environment of almost overwhelming change. The tools of today require almost constant education to master, and it’s probably never too early to get young people in the habit of thinking of learning as part of “the job”. Importantly, games like this are often geared towards very young children in elementary school (virtual lemonade stand, tycoon games, etc.) and provide a constructive, stimulating counterpoint to learning traditional basic skills like math, science and English.

Online team-building games instill the benefits of working together in employees, which is one of the top priorities of any organization. Often roles are reversed in these games, which serves to provoke a sense of empathy for the responsibilities and difficulties that coworkers face. Even a few hours per quarter engaged in team-building activities like this have clear value in the way that they open up lines of communication that are often underused as a result of reliance on e-mail and other rather impersonal forms of on-the-job coordination.

In terms of return on investment, most large companies in the United States seem to have committed to some degree to using business games, online or otherwise, as a method of indirectly aiding the bottom line. It’s clear that while the connotation of the word “game” normally means something a bit frivolous, business games are about improving skill sets in the absolutely serious world of commerce.

Business Degree Online

A doctorate in business administration is usually reserved for professionals interested in working as a teacher or partner with a university, but there are people who have the level of managerial positions, or work as consultants in the business. The Doctorate of Business offers the opportunity for people with a strong interest in business strategy to develop a specific aspect of the field. It is a highly respected title in the hands of relatively few in the area.

A Bachelor of Commerce degree

A Bachelor of Commerce degree provides students with a broad distribution of skills that could be applied to any number of media professionals. Experts in areas such as advertising, services, marketing, finance, accounting and sales could just be ready to start from scratch by obtaining a Bachelor of Commerce degree. This is something that could well be taken immediately to the position as an entry level or applied to a MBA program.

Associate in Business Degree Online

Associate degrees in business are considered “baseline” level that could start a very professional manner. Science in many of their graduates directly to a career in the world – managers, assistant managers, managers and other positions in business administration, while others have decided to continue their education in an undergraduate program. It takes most students about two years full-time study and prepare a business associate to terminate the employment of people the business from the ground. For more information about education, business administration

Associate in Marketing Degree Online USA is the first step in the marketing dynamic field of marketing. products, pricing, placement and promotion: marketing, marketing of various aspects of the disciplinary major provides students with knowledge of the link. Typical courses in consumer marketing activities, economic trends, population, accounting and management skills. Graduates and staff of advertising, marketing, public relations, marketing and market research fields, such as entry-level positions in marketing the show. Well, the nature of the marketing industry due to large, wholesale, trading and other niches, such as the purchase of a branch of Students.

India’s Education Sector – Back to School

India’s US$40b education market is experiencing a surge in investment. Capital, both local and international, and innovative legal structures are changing the face of this once-staid sector

The liberalization of India’s industrial policy in 1991 was the catalyst for a wave of investment in IT and infrastructure projects. Rapid economic growth followed, sparking a surge in demand for skilled and educated workers. This, combined with the failure of the public system to provide high quality education and the growing willingness of the burgeoning middle class to spend money on schooling, has transformed India’s education sector into an attractive and fast-emerging opportunity for foreign investment.

Despite being fraught with regulatory restrictions, private investors are flocking to play a part in the “education revolution”. A recent report by CLSA (Asia-Pacific Markets) estimated that the private education market is worth around US$40 billion. The K-12 segment alone, which includes students from kindergarten to the age of 17, is thought to be worth more than US$20 billion. The market for private colleges (engineering, medical, business, etc.) is valued at US$7 billion while tutoring accounts for a further US$5 billion.

Other areas such as test preparation, pre-schooling and vocational training are worth US$1-2 billion each. Textbooks and stationery, educational CD-ROMs, multimedia content, child skill enhancement, e-learning, teacher training and finishing schools for the IT and the BPO sectors are some of the other significant sectors for foreign investment in education.

Opportunity beckons

The Indian government allocated about US$8.6 billion to education for the current financial year. But considering the significant divide between the minority of students who graduate with a good education and the vast majority who struggle to receive basic elementary schooling, or are deprived of it altogether, private participation is seen as the only way of narrowing the gap. Indeed, it is estimated that the scope for private participation is almost five times the amount spent on education by the government.

CLSA estimates that the total size of India’s private education market could reach US$70 billion by 2012, with an 11% increase in the volume and penetration of education and training being offered.
The K-12 segment is the most attractive for private investors. Delhi Public School operates approximately 107 schools, DAV has around 667, Amity University runs several more and Educomp Solutions plans to open 150 K-12 institutions over the next four years. Coaching and tutoring K-12 students outside school is also big business with around 40% of urban children in grades 9-12 using external tuition facilities.

Opening the doors

Private initiatives in the education sector started in the mid-90s with public-private partnerships set up to provide information and communications technology (ICT) in schools. Under this scheme, various state governments outsourced the supply, installation and maintenance of IT hardware and software, as well as teacher training and IT education, in government or government-aided schools. The central government has been funding this initiative, which follows the build-own-operate-transfer (BOOT) model, under the Sarva Shiksha Abhiyaan and ICT Schools programmes. Private companies such as Educomp Solutions, Everonn Systems, and NIIT were among the first to enter the ICT market, which is expected to be worth around US$1 billion by 2012.

Recently, the central government invited private participation in over 1,000 of its industrial training institutes and offered academic and financial autonomy to private players. Companies such as Tata, Larsen & Toubro, Educomp and Wipro have shown keen interest in participating in this initiative.

Regulatory roadblocks

Education in India is regulated at both central and state government levels. As a result, regulations often differ from state to state. K-12 education is governed by the respective State School Education Act and the Central Board of Secondary Education (CBSE) Rules and Regulations concerning affiliation and/or the rules of any other affiliating body. Under current regulations, only not-for-profit trusts and societies registered under Societies Registration Act, 1860, and companies registered under section 25 of the Companies Act, 1956, qualify to be affiliated with the CBSE and to operate private schools.

While the K-12 segment accounts for the lion’s share of India’s educational market, weaving through the complex regulatory roadmap to qualify for affiliation poses serious difficulties for investors. The CBSE requires privately-funded schools to be non-proprietary entities without any vested control held by an individual or members of a family. In addition, a school seeking affiliation is expected to have a managing committee controlled by a trust, which should approve budgets, tuition fees and annual charges. Any income accrued cannot be transferred to the trust or school management committee and voluntary donations for gaining school admission are not permitted.
Schools and higher education institutions set up by the trust are entitled to exemptions from income tax, subject to compliance with section 11 of the Income Tax Act, 1961. In order to qualify for tax exemptions, the trust needs to ensure that its predominant activity is to serve the charitable purpose of promoting education as opposed to the pursuit of profit.

Alternative paths

Alternative routes do exist for investors seeking to avoid the web of regulatory barriers that constrain their involvement. Sectors such as pre-schools, private coaching and tutoring, teacher training, the development and provision of multimedia content, educational software development, skill enhancement, IT training and e-learning are prime sectors in which investors can allocate their funds. These areas are attractive because while they relate closely to the profitable K-12 segment, they are largely unregulated. As such, they make attractive propositions for private investors interested in taking advantage of the burgeoning demand for quality education. Companies such as Educomp Solutions, Career Launcher, NIIT, Aptech, and Magic Software, are market leaders in these fields. Educomp recently acquired a large number of educational institutes and service providers across India. It has also formed joint ventures with leading higher education groups, including Raffles Education Singapore, for the establishment of higher education institutions and universities in India and China. Furthermore, it has entered into a multi-million dollar collaboration with Ansal Properties and Infrastructure to set up educational institutions and schools across the country and closed an US$8.5 million deal to acquire Eurokids International, a private provider of pre-school educational services in India. Gaja Capital India, an education-centric fund, has completed the funding of three education services companies in India. NIIT and Aptech, meanwhile, are engaged in the IT training business.

Core Projects and Technology is also focusing heavily on India and is likely to bid to takeover, upgrade and run public schools for specified periods on a public-private partnership basis.

Higher hurdles

While state governments are largely responsible for providing K-12 education in India, the central government is accountable for major policy decisions relating to higher education. It provides grants to the University Grants Commission (UGC) and establishes central universities in the country. The UGC coordinates, determines and maintains standards and the release of grants. Upon the UGC’s recommendation, the central government declares the status of an educational institution, which once authorized, is entitled to award degrees.

State governments are responsible for the establishment of state universities and colleges and has the power to approve the establishment of private universities through State Acts. All private universities are expected to conform to the UGC guidelines to ensure that certain minimum standards are maintained.

Amity University in Uttar Pradesh is one of the private universities to open its doors. It was approved by the Uttar Pradesh state legislature on 12 January 2005 under section 2(f) of the University Grants Commission Act.

Not-for-profit and anti-commercialization concepts dominate higher education fee structures. To prevent commercialization and profit-making, institutions are prohibited from claiming returns on investments. This, however, does not pose a hurdle for universities interested in mobilizing resources to replace and upgrade their assets and services. A fixation of fees is required in accordance with the guidelines prescribed by the UGC and other concerned statutory bodies. For this purpose, the UGC may request the relevant information from the private university concerned, as prescribed in the UGC (Returns of Information by Universities) Rules, 1979.

In line with the policy on Fee Fixation in Private Unaided Educational Institutions Imparting Higher and Technical Education, two types of fees are required: tuition fees and development fees. Tuition fees are intended to recover the actual cost of imparting education without becoming a source of profit for the owner of the institution. While earning returns on investment would not be permissible, development fees may provide an element of partial capital cost recovery to the management, serving as a resource for upkeep and replacement.

Legal precedents

In order to be awarded university status by the UGC, institutions must comply with the objectives set forth in the Model Constitution of the Memorandum of Association/Rules, and ensure that no portion of the income accrued is transferred as profit to previous or existing members of the institution. Payments to individuals or service providers in return for any service rendered to the institute are, however, not regulated.

In this context recent court judgments on private universities are relevant. The Supreme Court, in Unnikrishnan JP v State of Andhra Pradesh, introduced a scheme regulating the admission and levy of fees in private unaided educational institutions, particularly those offering professional education. The ruling was later notified in the fee policy.

Subsequently, in the case of Prof Yashpal and Anr v State of Chattisgarh and Ors in 2005, the Supreme Court assailed the Chattisgarh government’s legislation and amendments which had been abused by many private universities. It was contended that the state government, simply by issuing notifications in the Gazette, had been establishing universities in an indiscriminate and mechanical manner without taking into account the availability of any infrastructure, teaching facilities or financial resources. Further, it was found that the legislation (Chhattisgarh Niji Kshetra Vishwavidyalaya (Sthapana Aur Viniyaman) Adhiniyam, 2002) had been enacted in a manner which had completely abolished any kind of UGC control over private universities.

The Supreme Court concluded that parliament was responsible for ensuring the maintenance and uniformity of higher education institutions in order to uphold the UGC’s authority. Following the judgment, only those private universities that satisfied the UGC’s norms were able to continue operating in Chattisgarh.

Professional institutions

Professional and technical education in India is regulated by professional councils such as the All India Council for Technical Education (AICTE). Established under the AICTE Act, 1987, AICTE gives recognition to courses, promotes professional institutions, provides grants to undergraduate programmes, and ensures the coordinated and integrated development of technical education and the maintenance of standards. The AICTE has recently exerted pressure on unrecognized private technical and management institutes to seek its approval or face closure.

A single bench decision of the Delhi High Court in Chartered Financial Analysis Institute and Anr v AICTE illustrates the far-reaching implications this kind of pressure can have on all institutions operating independently of the AICTE. The court found that the Chartered Financial Analyst Institute, a US-based organization, was engaged in imparting technical education and that its charter, though not described as a degree or diploma, was nevertheless descriptive of the candidate attaining an academic standard, entitling him to pursue further courses, and achieve better prospects of employment in the investment banking profession. The AICTE argued that the Chartered Financial Analyst Institute fell within the ambit of its regulation and was therefore obliged to submit to the jurisdiction of the regulatory body. The Delhi High Court upheld the AICTE’s view that the Chartered Financial Analyst Institute did qualify as an institution imparting technical education..

This judgment may have emboldened the AICTE to proceed against a number of other establishments that are on its list of unapproved institutions. It holds particular significance since despite not granting degrees and diplomas, the Chartered Financial Analyst Institute was still deemed by the court to be covered under the description of a “technical institute”.

Enthusiasm grows for foreign participation

While regulators such as the AICTE continue to exercise influence in the Indian education system, the sector is expected to witness a surge in foreign investment and perhaps a reduction in the number of regulatory roadblocks as a result of the central government’s enthusiasm for overseas investors. Foreign direct investment in higher education could help reduce government expenditure and there is a general consensus that education as a whole should be opened for domestic and foreign private participation.

The entry of foreign educational institutions into India will be covered by the new Foreign Education Providers (Regulation for Entry and Operation) Bill. The bill seeks to regulate the entry and operation of foreign education providers, as well as limit the commercialization of higher education. Foreign education providers would be given the status of “deemed universities” allowing them to grant admissions and award degrees, diplomas or certificates.

Operationally, the bill proposes to bring foreign education providers under the administrative umbrella of the UGC, which would eventually regulate the admissions process and fee structures. Since these foreign institutions will have to be incorporated under central or state laws, they will also be subject to the government’s policies of reservations. The bill is pending approval from the Indian Parliament but it is unclear if it will be taken by the present government for a vote prior to the general elections in 2009.

Innovative structures unlock profitability

The regulatory restraints on running profitable businesses in the K-12 and higher education sectors have driven Indian lawyers to devise innovative structures that enable private investors to earn returns on their investments. These typically involve the establishment of separate companies to provide a range of services (operations, technology, catering, security, transport, etc.) to the educational institution. The service companies enter into long term contracts with the trust operating the institution. Payments made by the trust to the service companies must be comparative and proportionate to the services rendered by such companies. Furthermore, in order to qualify for tax exemptions, the expenses paid by the trust to the service companies must not exceed what may reasonably be paid for such services under arm’s length relationships.
Despite the regulatory constraints, the Indian education sector is on a path of exponential growth. A growing number of private companies are undertaking creatively structured projects in the education business and the level of investor confidence is demonstrated by the recent spate of M&A activity that has taken place.

With more domestic players emerging, the education sector is likely to witness consolidation, but at the same time, increasing foreign participation will drive competition and raise standards. Liberalization will continue to intensify as the government struggles to remedy its poor public education system and provide quality institutions to educate India’s masses.

Seema Jhingan and Dimpy Mohanty are partners at LexCounsel Law Offices. The firm is headquartered in Delhi and advises on areas including mergers and acquisitions, private equity and venture capital, projects, telecommunications, software/information technology, education, media and entertainment, taxation, retail, licensing and franchising, insurance, general corporate and commercial work and international arbitration. Seema can be reached at sjhingan@lexcounsel.in

Areas of Practice:

Infrastructure, Telecommunications, Power, Mergers/Acquisition, Software/Information Technology, Business Process Outsourcing, Media & Entertainment, Private Equity and Venture Capital, General Corporate and Commercial, International Arbitration.

Professional Summary:

Seema Jhingan’s practice spans over fourteen years during which she has acquired substantial expertise in representing developers, sponsors/lenders, venture capital investors, international corporations, financial institutions, and other strategic investors involved in the establishment, development and financing of major infrastructure and IT projects in India.