Preschool Market Forecast
ANALYSTS and education experts are bullish on the education sector, especially the preschool segment. In India the preschool market leads the pack in the franchise industry. Out of four main verticals in the education industry, preschools, K-12, vocational and supplementary education, organised preschool players share the largest pie. The Indian education industry is poised for rapid growth. This sector is changing rapidly with more private players entering the field. The private education industry in India is currently estimated to be between $6,000 million and $7,000 million, of which the preschool segment constitutes $1985 million and is likely to touch $3,426 million by the end of2012, a growth of 28.3% per annum, according to the brokerage firm, CLSA Asia Pacific Markets.
As India is home to world's largest number of children in the age group 0- 5 years, catering to the same age group offers many opportunities. But there is still a dearth of good preschools in the preschool industry.
Growing tribe of edupreneursIf we see the trend, franchise players have made successful inroads into this huge market. But their presence is still limited to the metros and a few select tier-2 cities. The potential of India's preschool education market is still largely untapped, and it hasn't reached even a tenth of the child population in the age group 0-5 years.
- Starting a preschool is one of the best profitable business options available today. While evaluating the prospects of the business, it is helpful to have a thorough understanding of the advantages beforehand. Some of the advantages are discussed in detail for providing a clear understanding of the current scenario.
- One of the foremost advantages of starting a preschool is satisfaction of providing strong foundation to kids. Parents enroll their kids in preschool with a belief that their child will learn and acquire skills under the supervision of trained professionals. Thus, providing skilled professionals in preschools for the benefit of students gives a strong feeling of satisfaction.
- Business wise, this is an easy to establish business. It involves seeking limited legal permissions and investment cost is very low. Once established, it needs a constant focus and dedication but it is comparatively easier to be managed in comparison to other business processes. Now, with the advent of franchise model, it has become much easier for an entrepreneur to start a preschool.
- Having low entry barriers also makes this a lucrative business opportunity. According to several recent reports conducted by different bodies, the number of children eligible to be admitted to school is much higher in comparison to the seats available in the running preschools. Hence, scope is high to establish your own preschool in India.
- Recently, with more and more advancements in education industry and reforms from the Indian government, establishing and running a preschool business has become a profitable business. In contrast to higher schools that are non-profit organizations, preschools are a for-profit organization. However, government is planning to keep the profits under control for the benefits of the parents and making education accessible for all.
- As the importance of education is being understood by masses, the parents' community is interested in providing quality education to their children. The concept to preschools is also pacing up. Moreover, the working parents who are always running short of time to teach their kids find preschool to be a better option. This is so because, the children get due attention from their teachers, learn different skills and are benefited by day-care facilities. Providing day care facilities bring more income in same budget only.
- Even the high profile venture capitals seem all charged up to invest money in education sector via preschool business. Hence, with so much scope to penetrate and expand, starting a preschool is no doubt a profitable business with low investment and high return on investment.