Education Entrepreneurs Are the Only Ones Who Can Disrupt the Status Quo

Transforming entrenched systems and industries comes through disruptive innovation and entrepreneurship. Coined by Harvard Business School professor Clayton Christensen, disruptive innovation is the process by which new ideas and inventions create value and ultimately topple existing competitors. A visionary individual or group spots opportunity and develops new solutions that meet consumer demand faster, better, and more cheaply. This innovation improves our lives through efficiency and cost-effectiveness, allowing us to keep more of our hard-earned money with better service and satisfaction.

Independent and Innovative Education

It shouldn’t come as a surprise that most of the organizations I highlight in Unschooled are independently run. Disruptive innovation may originate with individual ingenuity, but it is fueled by consumer demand and value creation within the private sector. Not that the public sector hasn’t tried. Back in the 1960s and early 1970s, there was a surge of interest in reforming mass schooling from within. The Open Classroom movement emerged, encouraging less restrictive classrooms and more choice and freedom for students.

In Philadelphia, Pennsylvania, in 1967, the city’s public school system launched its Parkway Program, sometimes known as the “school without walls,” in which young people were able to select their own classes and learn throughout various spots across the city, including private businesses, museums, local universities, and public spaces. In 1970, the New York Times called the Parkway Program “one of the nation’s boldest experiments in public education,” noting that over ten thousand students applied for only five hundred available slots.

Any meaningful and lasting transformation in American education must come from the private sector.

Within a decade, though, momentum for programs like Parkway waned. New public education fads appeared and old ones faded. Ultimately, Parkway was reabsorbed into the larger school district, becoming indistinguishable from Philadelphia’s other public schools.

More recently, a fully self-directed district high school that I also write about in Unschooled was set to open this fall in Somerville, Massachusetts, a city just outside of Boston. Powderhouse Studios had everything going for it, including relief from onerous public schooling requirements under the state’s Innovative Schools legislation and a $10 million grant from XQ Super School, an organization co-founded by Laurene Powell Jobs, wife of the late Steve Jobs of Apple, Inc. After seven years of concessions and compromise by the school’s leaders, the city’s school committee ultimately voted unanimously this spring not to approve Powderhouse’s opening.

Private Sector Reforms

As much as many parents and educators would like to believe that meaningful reforms can occur within the mass compulsory schooling model, real education innovation occurs most successfully and enduringly through the private sector. Free from state curriculum requirements, standardized testing mandates, and restrictions on hiring and firing, private educational organizations are able to experiment and innovate, with parents as the key stakeholders to ensure accountability.

Many of these schools and organizations are tiny non-profit enterprises that serve a small group of children and are often financially inaccessible to many families. But disruptive innovation in education has the capacity to bring real change to the masses—if educators embrace an entrepreneurial, free-market mindset.

In his book, Conscious Capitalism: Liberating the Heroic Spirit of Business, Whole Foods co-founder John Mackey writes about his early days immersed in the left countercultural movement of the late-1960s and 1970s. He lived on a commune in Texas for two years and became active in the local food co-op movement.

Entrepreneurship and Capitalism

Mackey writes in the book’s introduction:

Politically, I drifted into progressivism (or liberalism or social democracy) and embraced the ideology that business and corporations were essentially evil because they selfishly sought only profits. In contrast to evil corporations, I believed that nonprofit organizations and government were “good,” because they altruistically worked for the public interest, not for profit.

The longer Mackey was part of the non-profit food co-op movement, the more disenchanted he became with its ideology. He writes:

I ultimately became disillusioned with the co-op movement because there seemed to be little room for entrepreneurial creativity; virtually every decision was politicized.

Discovering the power of free-market capitalism, Mackey was able to scale his vision for healthy food and a healthier planet in ways that small, local, non-profit food co-ops were unable to, leading many more people to have access to organic food and many more jobs created to provide that food.

Mackey writes about his path from progressive anti-capitalist to proud entrepreneur:

I learned that free enterprise, when combined with property rights, innovation, the rule of law, and constitutionally limited democratic government, results in societies that maximize social prosperity and establish conditions that promote human happiness and well-being—not just for the rich, but for the larger society, including the poor. I had become a businessperson and a capitalist, and I had discovered that business and capitalism, while not perfect, were both fundamentally good and ethical.

Education needs its own Whole Foods moment. It needs entrepreneurial innovators to move small, non-profit organizations into larger-scale, profitable enterprises that serve more families and students with better outcomes and lower costs. Now with Amazon’s acquisition of Whole Foods, the potential for greater accessibility at lower costs increases.

Seeds of an enterprising moment in education are beginning to sprout. Acton Academy is a low-cost, self-directed network of private schools, often operating on a hybrid homeschool model, that is expanding across the country by educators committed to entrepreneurship and educational creativity. In an article for Forbes, Bill Frezza describes Acton Academy’s potential to remake the educational landscape. He writes:

With the right program as a model, anyone who home schools his kids can operate an Acton Academy. And not just for his or her own children, but for a schoolhouse full of them. Run the numbers and you can even make a lucrative living while charging tuition well below than that of most conventional private schools.

Standardized Equals Restrictive

Similarly, the Academy of Thought and Industry is a for-profit network of schools that could trigger necessary disruption in education. Founder Michael Strong acknowledges the power of profit-driven free enterprise to create lasting educational change that is higher-quality, lower-cost, and ultimately scalable. He says:

Any time something is profitable, that is what makes it able to go to scale. The reason we have low-cost groceries now (compared to 100 years ago) is because it’s profitable to bring food to millions and millions of people.

Any meaningful and lasting transformation in American education must come from the private sector. Public schools have tried to innovate; yet compulsory mass schooling has become more restrictive, standardized, and all-consuming of American childhood than at any other time in our history. To enact real, scalable change in education—just as Whole Foods did with the organic food movement—entrepreneurial parents and educators will need to imagine and implement new models of learning. These models must be rooted in the time-tested principles of free-market capitalism, or what Mackey describes as

the heroic nature of business, its essential virtues, and its extraordinary potential to do more good for more people in a sustained manner than any other social or economic system ever invented by humankind.

Entrepreneurs can help to replace an obsolete schooling model of education with a new learning one fit for the innovation era. In fact, they may be the only ones who can move us from where we are to where we could be.

Listen to Kerry McDonald discuss unschooling with FEE president emeritus Lawrence Reed (12:00 mark):

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Reviewing Paranoia

We often hear about “movies that are better than the book,” but rarely of “book reviews that are better than the book.” Cato’s Alex Nowrasteh has just published one such book review.  Here’s Nowrasteh on Reihan Salam’s Melting Pot or Civil War? A Son of Immigrants Makes the Case Against Open Borders:

The gap in quality between the book described by reviewers above and the actual book Melting Pot or Civil War? is wider than in any other book that I can remember reading. Descriptions of “calm” and “reasonable” are the most perplexing. True, he appeals to Americans “who are willing to meet others halfway” to solve the problems that he’s identified. On the other hand, he also argues that we need to follow his policy recommendations or face a racialized civil war. That is the very opposite of a “calm” or “reasonable” argument. A better description would be “hysterical” or “paranoid.”

Hysteria and paranoia aside, what’s wrong with the book?  Salam engages in extreme reverse engineering, where even the most favorable facts about immigration somehow become extra reasons to oppose it:

For example, Salam disagrees with himself over whether the goal of immigration policy should be to increase wages and employment for low-skilled immigrants and their descendants, or per capita productivity growth in small sectors of the economy. He rightly claims that immigration barely affects wages in the United States, but then argues that a major benefit of stopping low-skilled immigration is higher wages for native-born and immigrant dropouts. Salam correctly points out that low-skilled immigrants today compete mostly against other low-skilled immigrants, so he wants to help low-skilled immigrants here by stopping more from immigrating in the first place.

Much of the book, moreover, is simply odd:

Forgetting everything that he wrote about labor markets, Salam praises a science fiction-esque scenario of “virtual immigration” where workers would work remotely by operating robots in the United States from their home countries — even though the labor market effects of that would at best be economically identical to allowing them to immigrate and work here. Salam argues that “virtual immigration will do more good than harm for U.S. workers, provided we have the right safeguards in place [emphasis added].” Salam does not explain what those safeguards are, how they would prevent competition in labor markets, and why the government couldn’t just apply those same safeguards to prevent labor market competition between low-skilled immigrants and low-skilled natives.

And:

Salam mentions the enormous economic cost to those foreigners who would be locked out of the United States under his preferred immigration policy. He proposes a package of U.S. foreign aid to bribe foreign governments to establish charter cities so that low-skilled immigrants can go there instead of the United States. Oddly, he predicts those charter cities will become “fonts of entrepreneurship and public policy solutions” and that excellent new ideas developed there will enrich America. If low-skilled immigrants are entrepreneurs who will create fantastic new ideas in these charter cities that will eventually make it to America, why not just let them come here in the first place? Why spill so much ink supporting a utopian scheme of charter cities as a solution to global poverty when immigration is a tried and true method?

You might think the “civil war” stuff is just hyperbole on the book cover, but no:

To his credit, Salam does admit that there is no private political violence in American today that is comparable to the chaos before the Civil War, but that “it is hard to shake the feeling that our luck might soon run out.” Civil war is a deadly serious topic and perhaps this reviewer is being too nitpicky, but I require more than Salam’s difficultly in “shaking a feeling” to take his worry seriously. He should have done more to show that the choice is really between his “melting pot” or a “civil war.”

Better yet, Salam should have proposed a bet.  I say that America – indeed, the entire First World – is not only too rich, but too electronically sedated, to physically fight about much of anything.  The risk of civil war in the First World is small enough to make even the trivial danger of terrorism look big by comparison.

If you think me naive, come take my money.

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What Parents Can Really Do to Help Prepare Their Teens for Success

While reading about the student-led climate protests last week, a statement jumped out at me from the 16-year-old Swedish activist, Greta Thunberg, who is credited with launching the walkouts that occurred in over 100 countries. In an interview with The New York Times, Thunberg, who says she was a shy but good student who was overcome for years with adolescent depression, claims that her climate work has added fulfillment to her life. She says: “I’m happier now…I have meaning. I have something I have to do.”

Teenagers Crave Purpose

Regardless of how you may feel about climate activism, the key message to parents is that school can be stifling and anxiety-inducing for many teenagers who crave and need meaningful work. Adolescents are meant to come of age within the adult world, surrounded by a diverse group of mentors and engaged in authentic, real-life pursuits. This gives them both experience and personal reward.

Instead, teenagers today are spending more of their time confined in school and school-like settings than ever before. Teenage employment has plummeted, with part-time jobs abandoned in the all-out quest for academics and college admissions. Summer jobs, once a signature activity for teens, are no longer valued. Schooling has become the priority—even in summer. In July 1985, only ten percent of US teens were enrolled in school; in July 2016, over 42 percent were.

Thunberg also isn’t alone in her teen depression. Mounting data show skyrocketing rates of adolescent anxiety, depression, and suicide over the last decade. Some researchers point to technology and social media as the culprit, but they ignore other, recent cultural trends—like more time in forced schooling and less time engaged in jobs and meaningful work—that could be contributing to adolescent strife.

Job Experience Could Be A Solution

In a recent Harvard EdCast podcast interview, Julie Lythcott-Haims, former dean of freshmen and undergraduate advising at Stanford University and author of the book, How to Raise an Adult, said that she has heard from several admissions officers that they, regrettably, rarely see work experience described in student essays or otherwise touted on college applications. Young people and their parents now believe that academics and extracurriculars are more important than good, old-fashioned teenage jobs.

Not only is this increased emphasis on school over work likely contributing to teenage angst and disenfranchisement, but it is also not serving them well for the adult world they will ultimately enter. A report by the US Chamber of Commerce Foundation revealed that employers are disappointed that today’s highly-schooled graduates lack basic proficiency in simple tasks like drafting a quality email, prioritizing work, and collaborating with others. Other studies have found similar results, with employers frustrated by their new hires’ lack of communication skills, poor problem-solving and critical-thinking abilities, and low attention to detail.

While parents and teachers may think that piling on academics is the key to adult success, the lack of genuine work experience can be more hindrance than help for today’s young people. If parents really want their children to have a meaningful and successful adolescence and adulthood, they should consider trading a well-schooled life for a well-lived one. They can encourage their teens to get jobs and gain beneficial work experience—and make sure that their kids handle it all independently, learning through trial and error. As Lythcott-Haims warns in her book:

Helping by providing suggestions, advice, and feedback is useful, but we can only go so far. When parents do what a young employee must do for themselves, it can backfire.

In addition to encouraging part-time work, parents can also help their teenagers to develop an entrepreneurial mindset that focuses on customer satisfaction and value creation. By looking at her job (even if it’s in retail or food service) from an entrepreneurial perspective, a teen can learn a lot about business and value-creation and may be inspired to become an entrepreneur in adulthood. Unfortunately, entrepreneurship is woefully neglected in schools and standard extracurriculars.

As parents look ahead to summer vacation, they may want to pause and take a closer peek at their teenager’s plans. Will she spend those warm months getting ahead on her AP classes? Will he do a foreign language immersion program that will look good on the college transcripts? Maybe getting a job or learning how to think like an entrepreneur would be a more beneficial and rewarding way to enjoy a summer—and a life.

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Patrick Newman: The Progressive Era and the Rise of Crony Capitalism (45m)

This episode features a lecture by economics professor Patrick Newman from 2018 on the United States’ Progressive Era and the rise of political entrepreneurship, or crony capitalism.

Listen To This Episode (1h7m, mp3, 64kbps)

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All Hail the Entrepreneurs (and the Carnitas They Bring Us)

Those of you who regularly visit my Facebook page or see my posts at The Beacon blog may recall that I have posted from time to time about Lucio, my hero and savior.

His heroism pertains to his dedicated entrepreneurship in the service of the consumer (that’s where I come into the story, as a purchaser of the fruits, vegetables, and assorted other foodstuffs he brings to my gate three times each week from markets more than a hundred miles away).

His salvation has nothing to do with my immortal soul, but everything to do with my mortal body, which, thanks to him, I am able to nourish regularly with high-quality food.

A few days ago, in response to our special request, he brought something we had never bought from him before: a substantial portion of carnitas (a dish akin to pulled pork in the USA), along with some serious salsa picante and a bag of delicious pico de gallo. I used the tortillas I had on hand to make these ingredients into two outstanding tacos for my lunch that day, and I ate more of the meat with boiled eggs for dinner. I still had enough left for another two or three nice meals. And the price was certainly affordable.

This might all seem completely ordinary to you, but bear in mind that I am able to enjoy these culinary delights even though I live at the ends of the Earth, at the far reaches of the Mexican state of Quintana Roo. For Lucio’s making it possible for me to live here so well, I feel much indebted to him.

All hail the ordinary, unsung entrepreneurs of the world who feed not only Paris and New York, but also poor little Xcalak. Markets don’t arise and function automatically. Entrepreneurs establish them and keep them going incessantly. It’s not the government that stands between the people and starvation. It’s the entrepreneurs.

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The Call to Entrepreneurship and Our Excuses

Think starting up your dream business is a daunting task?

Imagine going straight from being on vacation to starting up a complex refugee rescue mission under the nose of the Nazis – with no prior experience and no preparation.

That was 29 year-old stock broker Nicholas Winton’s entrepreneurial story.

From 1938 to 1939, Winton successfully organized the evacuation and foster care assignment of 667 Czech Jewish children – without special skills, with funds he raised, and without more than a few staff. He dropped everything, “cut all kinds of corners,” and worked furiously against time and the Nazis and the restrictive immigration policies of the Western democracies.

As he explains drily in a documentary made (much) later (rough quote):

“We even had (fake) passports made because the Home office was moving a bit slow. . . We didn’t bring anyone in illegally – we just sped up the process.”

This man had every reasonable excuse in the book to not take action. We certainly wouldn’t have blamed him if he had deferred action until he had returned from vacation and set up a nonprofit first.

But Winton was not that kind of human. And neither should we be.

I have lots of excuses for why I haven’t started a business yet: I’m looking for the right idea. I’m building skills. Im building capital.

My excuses will allow me to feel OK about delaying this challenge until I look examples like Winton in the eye. They saw clearly that their call to entrepreneurship was a matter of life and death for some people – and they acted accordingly, without the slightest preparation.

Oh, and Winton? At the age of 89 he was working on (not staying in) a home for the elderly. If you let yourself start as well as Winton did, it will be pretty hard for you to stop.

Originally published at JamesWalpole.com.

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