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Education that Pays for Itself:
The Financially Self-Sufficent School Model

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Financially Self- Sufficient School Model:
n Classroom n Practical experience
instruction running commercially
successful on-campus
enterprises

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Purpose of School Enterprises
1) Training platform
For students to acquire
practical & entrepre-
neurial skills in demand
in real markets
2) Income-generation
To cover school operating
costs & ensure long-term
financial sustainability.

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Measures of success:
1. Graduates: 100% are productively
engaged within 4 months of graduation

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Productively engaged
n Responsible job in modern sector
n Started own business, with own business plan &
line of credit
n Teaching at another agricultural school
n Working as a rural extension agent
n Entered university

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2. Financial Self-Sufficiency:
US $ 2003 2004 2005 2006 2007 2008
Income 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-
21% 20% 35% 74% 101% 104%
Sufficiency
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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Small livestock

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Rural Services:
Roadside Store & Restaurant

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Rural Services:
Hotel & Conference Center

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Rural Services:
Outdoor Education Training Workshops

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How to integrate education
& income generation?
Key Tool =
Business Plan for Learning & Production

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Basic Steps:
1. Estimate program expenses:
Teachers salaries
Food for students & teachers =
+ Electricity & water, etc. etc.

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2. Define competencies for type of qualified
labor to be trained rural entrepreneurs.
n
t o productio
Calcula Add value cinate
te break Vac
-even p
oint livestock
Use
y email
Provide nicate b
organ
ic Commu
good
farmin
g ccurate
techn client Keep a
iques cords
service re

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3. Decide which income-generating activities
could teach those competencies .
Rural areas :
Urban areas:
Chicken coop?
Eco-friendly construction ??
Ornamental plants??
Catering ??
Road-side Coastal areas:
store?? Rural hotel?? Fish processing ??
Boat & motor repair??
Eco-tourism ???
Boat trips??

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

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5. Develop a standard
business plan for each
school business under
consideration.
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 & practical
activities that meets production &
educational needs.
n Section A: n Section B:
Classroom Activities Practical Activities
6:00 Campus clean-up 6:00 am Feed animals
7:00 Breakfast 7: 00 Breakfast
8:00 Math class 8:00 Organic Garden
9:00 Plant production 10:00 Mechanics/Electricity
10:00 Language Arts 11:30 Lunch
11:30 Lunch

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8. Evaluate results being achieved:
Competencies being Financial results of each
acquired vs. enterprise vs.
Training goals Projected production,
income & expenditure

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9. Continuously adjust activities in classroom
and field in response to market signals
Example: Example:
Cotton is not Not all the school´s
profitable for produce is selling at
school or the organic market; let s
Paraguayan work harder with
small-holder; students on how to
let s stop display produce &
teaching & interact with
producing that. shoppers.

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Tips:
1. Maintain daily records & controls
2. Keep separate accounting for each enterprise
3. Make teachers responsible for income
generation
4. Give responsibility for whole cycle (planning -
production- marketing)
5. Seek market niches, value-added, diversification
6. Offer financial incentives for reaching goals, if
possible.

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Educational impact:
1. Curriculum remains market-driven
Example:
Decision to stop
teaching cotton
production due to
lack of profitability
for school & small
farmer.

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2. Teachers develop own
entrepreneurial skills &
mindset
Example:
Sale of
school
tractor

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3. Encourages innovation
Examples:
Hot chili
powder
Suckling
pigs

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4. More efficient use of school resources
Example:
Student dining
pays market prices
for products from
the chicken coop,
organic garden &
other enterprises.

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Where else could there be a
financially self-sufficient
school?

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Anywhere…
Rural areas… urban areas….coastal
areas…. highlands…. lowlands… etc.

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You’re invited!
Third Annual
Conference on
Education That Pays
For Itself
Yachana School,
Ecuador
December 8-10, 2009
For information, see:
www.teachamantofish.
org.uk/conference

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Thank you!
www.fundacionparaguaya.org.py
www.teachamantofish.org.uk