Capital competition for early childhood education: advantages and disadvantages of for-profit and non-profit kindergartens

With the adoption of the third draft of the "Private Education Promotion Law", the tide of capital securitization in the early childhood education industry has once again surged. Weichuang shares, Xiuqiang shares, Hejing Technology, and Changfang Group have increased their actions in the field of early childhood education.

The capital group's competition for early childhood education is obviously not to promote the universal welfare of pre-school education, but to be based on the nature of capital gains. Under the background of the third instance of the "Private Education Promotion Law" and the legalization of for-profit private parks, the education departments at all levels of government lack sufficient psychological preparation, policy wisdom and experience in dealing with capital from 2010. Since the "Ten Articles", just reversing the good preschool education will once again encounter a fatal impact.

Therefore, the education department should fully study the three important documents of the State Council on Several Opinions on Encouraging Social Forces to Establish Education to Promote the Healthy Development of Private Education, the Implementation Rules for the Classification and Registration of Private Schools, and the Implementation Rules for the Supervision and Management of Profitable Private Schools. The characteristics of the use of differentiated support, power list, negative list and other management tools to promote the smooth transformation of private early childhood education.

Fully understand the characteristics of capital and reserve rich capital experience

Since the founding of the People's Republic of China, although China's economic form has moved from a planned economy to a commodity economy and a market economy, as an administrative department in charge of education, there has been a lack of opportunities to directly contact the market and capital. With the legalization of for-profit private parks, schools in the compulsory education stage are not profitable, and some capital giants have entered the field of early childhood education, forming a new pattern of investment in the field of “dumbbells” in education. As an education sector under the new policy background, it is necessary to plan ahead and expand its experience space, fully understand the characteristics of capital, and reserve sufficient wisdom to deal with capital groups, especially large capital groups. .

Obviously, the capital attribute in the mature market economy context is not the same as the capital attribute in the background of the immature market economy. In the current market economy, the education sector should rationally view the capital characteristics of entering the early childhood education field, not only seeing its productive and competitive aspects, but also preventing its exploitative and bloodthirsty aspects, and making better use of capital for pre-school education services.

Implement differentiated support policies to guide rational choice of private parks

In the “Regulations on the Classification and Registration of Private Schools” issued by the Ministry of Education and other five departments, the method for classified registration of existing private schools is: if the existing private parks are selected to be registered as non-profit private parks, only the school regulations must be amended according to law. If the existing private parks are selected to be registered as for-profit private parks, they must first conduct financial liquidation, and the relevant departments and relevant agencies of the people's governments at or below the provincial level shall clearly define the land, school buildings, school-run accumulation and other assets. The ownership of the company, and pay the relevant taxes and fees, apply for a new school license, re-registration, in order to continue school. Therefore, from the perspective of the gardener, choosing to become a for-profit or non-profit private park has its own advantages and disadvantages.

Choosing to register as a non-profit private park has three advantages:

First, it is only necessary to amend the articles of association and re-register;

Second, the state actively encourages and strongly supports non-profit private parks, and clearly proposes that “pre-school education encourages the organization of inclusive private kindergartens”, in government subsidies, government purchase services, fund incentives, donation incentives, land allocation, tax reductions. Give differentiated and diversified support in other aspects;

Third, the management department is familiar with the rules of education, civil affairs, human society, and editorial departments.

The disadvantages are manifested in three aspects:

First, the fees for non-profit private parks should be gradually implemented through market-oriented reform pilots, and the specific policies should be determined by the provincial people's governments according to the cost of running schools, the degree of local public education, and the development of private schools;

Second, the non-profit private park organizers do not receive school income, and the school balances are all used for running schools;

Third, after the termination of the park, the assets are not owned by the park.

Choosing to register as a for-profit private park has four advantages:

First, the organizer can obtain the income from running a school, and the school balance is distributed according to relevant state regulations. The private park enjoys the legal property rights of the legal person;

Second, the fees are subject to market adjustment prices, and the specific charging standards are determined by the private parks;

Third, the people's governments at all levels provide support to for-profit private parks through government procurement services and tax incentives in accordance with economic and social development needs and public service needs;

Fourth, the domestic capital market is open to it and can rely on capital market forces to support rapid expansion.

The disadvantages are mainly manifested in six stages and six aspects.

Registration stage:

First, if the kindergarten originally allocated land, the land premium will be re-registered, so the cost of maintaining the land will increase;

Second, in some places, it may be necessary to pay taxes on the early profits of private parks;

Third, the stability of the teaching staff and the trust of the parent group may be reduced;

Fourth, you need to obtain a school license from the Education Bureau and obtain a business license in the Industry and Commerce Bureau.

Daily operation stage:

First, the choice to become a for-profit private park must be taxed. Among them, the value-added tax is 6% and the income tax is 15%-25%. This will probably increase the cost of more than 30% of the private parks and reduce the profits by more than 50%;

Second, if private parks reduce their losses by raising fees, they may lead to a decline in competitiveness. However, if the pre-school education resources in the region are seriously insufficient, the probability of success in the profit-making private parks will be high, which will lead to a new round of admission.

Therefore, when formulating regionalized classification management measures, all provincial governments should fully consider the advantages and disadvantages of for-profit private parks and non-profit private parks, and support private park registration through differentiated support and policy guidance. Registered as a non-profit private park to provide inclusive pre-school education services.

Guided by public welfare, refine the list of responsibilities and access negative lists

The core of the third review draft of the "Private Education Promotion Law" is classified management. Therefore, when governments at all levels actively guide most private parks to become non-profit private parks, they should be guided by public welfare and refine their access to negative lists. Guide the for-profit private parks to provide standardized and high-quality selective services, and pay attention to the unity of social and economic benefits. Therefore, in the face of the phenomenon that capital groups enter the preschool education to acquire and acquire private parks and private training institutions, all government departments must cooperate and actively guide to prevent regional capital monopoly, resulting in capital abduction of government and weakening of public welfare of preschool education. .

It is true that capital has a double-sided nature, both productive and profit-seeking, and the two are perfectly combined. Governments at all levels should fully understand the dual characteristics of capital and use policy levers to amplify the productivity of capital. For example, play an active role in transforming functions, improve licensing methods, relax conditions for access to schools, innovate financial support, implement equivalent funding, and implement tax incentives. The implementation of differentiated land use, the implementation of classified charges, the protection of the law-based self-sponsorship, the protection of teachers and students' rights and other policy toolbox.

At the same time, restricting the profitability of capital by a negative list, for example, listing the prohibition and restrictions of school-running behavior, re-combing the conditions and procedures for the registration of private schools, establishing a disciplinary mechanism for violations of laws and regulations, and increasing the investigation and punishment of illegal and illegal school-running behaviors, etc. .

Prior to the "National Ten Articles", the focus of the education sector was on public parks and some public-purpose kindergartens, and there was little coordination and coordination of the survival and development of private parks. After the "National Ten Articles", the "Inclusive Society for Private People" surfaced, the pre-school education joint conference system was gradually established, and the education department began the process of coordination with small and medium-sized capital, and gradually accumulated financial and development, live and live. Collaborative experience in construction, fire, public security, and human society.

However, unlike previous management models and communication habits, the classification management of private parks requires the education department to cooperate more with people and business. For example, in the case of for-profit private parks, the education department should conduct annual inspections with the people's associations, review of admissions guidelines, school conduct, education and teaching quality supervision, and electronic student registration. If the education sector is more about departmental thinking before the classification reform, now it needs more co-ordinated thinking and synergistic wisdom. Otherwise, it cannot be a good reformer, a leader, or a server.

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