Launching New Nonprofit K-12 Schools in Sweden: An Examination of Founding Rates and Barriers to Entry

• In Event: The Role of Civil Society in Educational Systems

Abstract

In most nations, the control and provision of K-12 education are in the hands of public institutions. Because having an educated population is deemed a vital component to improve and build strong societies, public schools are considered one of the most vital instruments to ensure all children get access to education. However, some countries, including Sweden, Chile, and the United States, have developed “welfare partnership” linking government to nonprofit (and for-profit) organizations in the K-12 education field, primarily through school choice mechanisms such as vouchers or charter schools.

These mechanisms target the supply side, seeking to create space and stimulate groups and individuals to pursue their entrepreneurial impulses creating new educational organizations from scratch. As Frumkin (2002, 129, 130) observes, the nonprofit sector represents a probable for such action as “[a]lmost anyone with an idea or vision can found a nonprofit or voluntary organization quickly. […] One of the principal reasons the nonprofit and voluntary sector is becoming an attractive vehicle for entrepreneurship is the barrier to entry is low.”

However, creating a new nonprofit venture from scratch, especially one as multifaceted and resource demanding as a new school venture, is not an easy task. While prior research has examined the internal challenges and struggles of founding new nonprofits (e.g., Edenfield & Andersson, 2018; Andersson, 2019), less is known about when and how external factors promote or chill new nonprofit venture creation, in particular when it comes to new nonprofit school ventures (though there are some exceptions see Andersson & Ford, 2017; Henrekson et al., 2020).

Drawing on institutional theory emphasizing the role of formal institutions in shaping entrepreneurial behavior (Minniti, 2008) as well as insights from population ecology theory about organizational foundings (Carroll & Kessina, 2005), the purpose of this research is to examine formal entry barriers facing nonprofit entrepreneurs seeking to create new school ventures in Sweden. Specifically, we ask, (i) what type of formal entry barriers do Swedish nonprofit school entrepreneurs encounter, (ii) how successful are Swedish nonprofit school entrepreneurs in surmounting such formal entry barriers, and (iii) are there any differences in the success rate between nonprofit and for-profit entrepreneurs seeking to create new schools?

To answer these questions we utilize data from the Swedish School Inspectorate (Skolverket) from 2010 to 2022 providing information about attempted and successful applications to create new school ventures in Sweden. The data not only reports successful and unsuccessful attempts by school entrepreneurs to create new school ventures but also outlines reasons why a new school venture was not approved.

We are currently analyzing our data, and we will have findings ready to present at the ISTR conference. Although this paper focuses on a single national context, comprehending the role of formal entry barriers is an important feature and concern for nonprofit entrepreneurs seeking to overcome them and for policymakers who are trying to implement policies that will foster innovative ways to address one of the most essential public domains. K-12 education, in most countries

References

Andersson, F. O. (2019). The bumpy road of nonprofit creation: An examination of start-up problems encountered by nonprofit entrepreneurs. Nonprofit and Voluntary Sector Quarterly, 48(1), 194-207.

Andersson, F. O., & Ford, M. (2017). Entry barriers and nonprofit founding rates: An examination of the Milwaukee voucher school population. Nonprofit Policy Forum, 8(1).

Carroll, G.R., and O.M. Kessina, O. M. (2005). “The Ecology of Entrepreneurship.” In S.A. Alvarez, R. Agarwal, & O. Sorenson (Eds.). Handbook of Entrepreneurship Research: Disciplinary Perspectives (pp. 167–200). New York: Springer.

Edenfield, A. C., & Andersson, F. O. (2018). Growing pains: The transformative journey from a nascent to a formal not-for-profit venture. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 29, 1033-1043.

Frumkin, P. (2002). On being nonprofit: A conceptual and policy primer. Cambridge, MA: Harvard University Press.

Henrekson, E., Andersson, F. O., Wijkström, F., & Ford, M. R. (2020). Civil society regimes and school choice reforms: Evidence from Sweden and Milwaukee. Nonprofit Policy Forum, 11(1).

Minniti, M. (2008). The Role of Government Policy on Entrepreneurial Activity: Productive,
Unproductive, or Destructive?. Entrepreneurship Theory and Practice, 32(5), 779–790.

Authors

• Ebba Henrekson, Marie Cederschiöld University

• Fredrik O. Andersson, Indiana University