Private Schools K-12

About 27,000 private primary and secondary schools operate in the US with combined annual revenue of $25 billion. About 80 percent of these schools are affiliated with religious organizations, 30 percent with the Roman Catholic Church. While most private schools are tax-exempt, nonprofit entities, some operate on a for-profit basis.

COMPETITIVE LANDSCAPE

Demand is driven by perceived inadequacies in the public school system. The success of an individual school depends largely on its reputation for quality. Large schools can offer a wider range of instruction and have some economies of scale. Small schools can be successful by providing instruction in a special field. Schools are highly labor-intensive.

PRODUCTS, OPERATIONS & TECHNOLOGY

Private schools provide primary and secondary education through a curriculum that is similar to that in public schools. About 60 percent of private schools provide education only through the primary grades (from kindergarten through the fifth or sixth grades); 10 percent provide only secondary education. Operations are similar to those at public schools: schools hire teachers, administrators, and support staff; buy educational and other materials; and buy or rent buildings and other space for classrooms and other student activities. Larger schools may operate food and sleeping facilities.

About half of private school students attend Catholic schools, which have an average of about 300 students. Other private schools are typically smaller, with an average of 130 students. The average public school has 530 students. The student-teacher ratio is 17:1 ...