Facts about the US Education Business and its Size

When we talk about the education industry or the education business, we see that it comprises of organizations and business which play an important role in supporting education. The education business includes charter schools, after-school tutoring services, educational content providers, special education services, school improvement services, professional development for teachers and, of course, the fast-growing arena of online education.

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The Education market in the United States of America is the one of the biggest investment markets in the US because of which investors’ rush to get shares in the education market. It represents 9% of the US’s gross domestic product. There is an increase in the online education business, called Massive open online courses since more and more people are registering online for courses. Two big giants Pearson and Murdoch’s Newscorp have begun to penetrate deeply in the education business.

The Federal and State expenditures in the education sector go beyond $750 billion. Education companies represent a large sector in the education industry. Their annual revenues exceed $80 billion.

It is said that the Education business in the US is worth $1.3 Trillion and is usually broken down into 4 major sectors namely,

  • Early Childhood education which is estimated to be worth around $70 billion,
  • K-12 which is worth around $ 670 billion,
  • higher education which is worth approximately $475 billion,
  • Adult learning or continued education which is worth approximately $55 billion.

Each of these 4 major sectors of the education business mentioned above are further broken down into the following three categories:

  • Test preparation also known as tutoring which is estimated to be worth around $1 billion and if you include higher education in it then it is worth around $5 billion.
  • Online post-secondary is worth approximately $20 billion.
  • Textbooks are worth approximately $5.5 billion just for higher education. It is a $25 billion market overall.

Almost 9% of the United States GDP is spent on education which is the second largest market after healthcare. There are approximately 100,000 public schools 4,000 charter schools in the K-12 space and approximately 30,000 private schools with 6.2 million students in them. If we assume the tuition to be a very modest amount, let say $5,000 per student, the total for yearly tuition would go up to $31 billion. Approximately 19 million students were enrolled into universities for higher education as per a report from 2009 for an average of $10,000 tuition which totals up to $190 billion for yearly tuition.

Reports have shown a promising market for e-learning which can be understood as using electronic technology to aid learning including network-enabled technologies and computer assisted learning. Currently, only a very small amount is spent on e-learning education business since it is still an emerging market. It is seen that for e-learning markets a comparatively bigger amount is spent on post-secondary educations sector as compared to the others. The online education business is growing rapidly and is a good area for investors to spend on. Considering education market is the second biggest sector in the US, and obviously online education is a part of it, it will definitely grow a lot and will reap good returns for investors who invest in this emerging market.


TED talk for Teachers

TED is a non-profit NGO which is dedicated to ideas that are worth spreading. TED talks started as a simple and basic attempt to share what exactly happens in the TED conferences. TED talks are available on almost all subjects and they are extremely inspiring. Teachers need to be role models for their students. Dedicated to their work and inspiring students to do what they love to do. They impart knowledge which stays with the student all their lives. This is the reason they need to be inspired themselves so they can remain dedicated to their profession. There are many inspiring TED talks for teachers and educators available on their websites which prove to be very useful for them.

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Let’s look at 5 for now.

The first TED talk for Teachers is by SugataMitra, called ‘The Child-driven Education. DrSugata is an education researcher who conducted experiments by the name of ‘Hole in the Wall’. These experiments proved that when there is no formal teaching and no supervision, children can teach themselves and others if they are motivated enough by curiosity. His experiments validate that when a teacher is not in class, that environment creates curiosity which causes learning via peer-shared knowledge and self-instruction.

The second TED talk for Teachers is by Ken Robinson, which is called ‘Changing Education Paradigms’. In this TED talk, Ken talks about the link between three disturbing trends; Attention Deficit/Hyperactivity Disorder, School’s decreasing stake in arts and the increasing drop-out rates. He says that the current way of education should be changed in the schools so creativity is focused upon. His Video of this talk is very inspiring as it talks about how we can change the educational model to a very personalized one if we want to see changes.

The third TED talk for Teachers is by DapthneKoller and is called ‘What We’re Learning from Online Education. In this TED talk Koller tempting the top universities to put up their most interesting courses online for free as a way to research how people learn instead of just putting it up as a service. With Coursera, every quiz, self-graded assignment, and peer-to-peer discussion builds up an extraordinary data pool on how knowledge is actually processed.

The fourth TED talk for teachers is by Dan Meyer and is called ‘Math Class Needs a Makeover’. Meyer gives a good example by saying that teaching school math is just like selling a product to someone to doesn’t want it but is actually forced to buy it because of a law. He says the resent curriculum lacks retention and initiative, enthusiasm for formula and dislike for word problems. He suggests the today’s math curriculum should include multimedia, questions asked should be short and student intuition should be encouraged. Hi video is very inspiring for all teachers.

The fifth TED talk for teachers is ‘One laptop per child’ by the founder of the MIT media Lab which is in Massachusetts. This project of his basically hopes to build pedal-powered laptops worth $100 and then distribute them among children of the developing countries with the aim of promoting education. This project hopes to provide opportunities to children to improve their own and their country’s future.

There are many more TED talk for teachers available on their websites. All teachers and educators should definitely see them because they are very inspiring videos and they will help a lot!