The Founding Decision: Who Starts Private Schools and Why?
In Japan, as in many other countries, private schools and universities are legally required to be non-profit organisations (NPOs) — organisations which do not have ‘owners’ who can sell their stock and receive profits. The earnings of NPOs must be reinvested in the organisation, they cannot be distributed — presumably to reduce the incentive for downgrading an educational product whose quality consumers may not be able to evaluate. The question then arises: who starts these schools and why?
KeywordsVenture Capital Private School Vertical Integration Bank Loan Debt Service
Unable to display preview. Download preview PDF.