Education Entrepreneurship Monthly – April 2021

Higher educationAn open letter from Universities UK and others at the beginning of the month prompted the government to confirm 17th May as the date students could return to campus (i.e. not until the beginning of the next stage of lockdown easing). This came after the sector had already expressed considerable frustration about a lack of necessary support 

Many want to know why this is the case, when nurseries, schools and FE have all already returned to face-to-face teaching? And why was this decision taken despite the mounting survey evidence of the negative impacts of the off-campus/remote experience for learning, social life, wellness and readiness for graduate employment?

Students, it appears, have largely given up hope of getting any more face-to-face teaching this academic year according to the fourth and latest HEPI and YouthSight survey of how students are coping with pandemic conditions.

In March, the ONS Student Insight Survey had already indicated that as many as two-thirds of students may have experienced a decline in their mental health this academic year as social distancing, isolation measures and shut-outs have continued to plague a return to anything like normal campus life. 

Taking stock. In FE, a report from the Association of Colleges (AoC), based on a survey of 80 college responses, was published. All respondents suggested negative impacts for learning, while 75% indicated that their 16–18-year-olds were between one and four months behind compared with a normal academic year. Drawing on the survey’s findings, the Association called for a £1.5bn package of support to fund up to an extra year of study for those due to leave this year, and funded extra hours and support for those already in or about to join. 

To put this in perspective, the government’s current spending plans for catch-up across the board–from early years, through schools and up–hover at around £1.7bn - while the true need, according to the Education Policy Institute (EPI), is likely to be more in region of £10-£15bn. The level of shortfall means many of those young people who need catch-up/remedial provision the most will miss out, if not on access to support, then on quality. For private and third sector providers and responding entrepreneurs, the future is B2C.

Youth job market. The full impact of coronavirus and lockdown on young people has been masked by still-rising participation rates. This is a trend that the general decrease in youth employment opportunities during the pandemic will only have added to. The Institute for Employment Studies (IES) reports that the numbers of young people on payroll have fallen by 12.0% since the start of the crisis a year ago, while the fall for all other age groups has been just 1.4%. Its report also highlights that the numbers point to significant increases in long-term youth unemployment (defined as those unemployed for more than six months), which is now at its highest level in five years.

The government’s response has focused first on the introduction of incentives (enumerated in the last issue) to help stimulate demand for apprenticeships and traineeships, and second, post-18, on the Lifetime Skills Guarantee, which got underway this month. From next year, free access will be given to some 400 qualifications and skills bootcamps for eligible adults without a Level 3, funded through the National Skills Fund. 

News and Views

UK-based Guide Education raises £6 million for tech-based approach to teacher training (Finsmes)

UK Edtech Mindstone ‘compound learning’ tool achieves $2.2 million raise with Moonfire Ventures (Tech.eu)

La Salle Education, an online learning and assessment platform, completes £1m funding round for new Digital Tutor product (Ed Tranham)

Graduway named EdTech Company of the Year 2020 by CIOReview (Cision PR Newswire)

Angel investment in Scotland back to end-2019 level (DailyBusiness)

Will Zoom Apps be the next hot start-up platform? (TechCrunch)

The Creator Economy Boom: What it is, what’s driving it, and where it’s going? (Ollie Forsyth, Global Community Manager, Antler)

How are VCs handling diligence in a world where deals open and close in days, not months? (TechCrunch)

Fundraising: How long does it take to raise capital for a start-up? (BNN Times)

Startup 101: Knowing When You’re Ready For Venture Capital (Forbes)

Which founder would you rather be? (David Franel, Partner, Founder Collective)