Increasing Business Value for Stability in The Need Private Schools Amidst Pandemic

International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue I, January 2022 | ISSN 2454–6186

Increasing Business Value for Stability in The Need Private Schools Amidst Pandemic

Edgardo S. Delmo & Sheryl R. Morales
Polytechnic University of the Philippines – Quezon City Branch

Abstract
In 2020, the COVID-19 pandemic struck every part of the world, disrupting every government economic mantle and not sparing the private or non-state education sector. In the Philippines, the Department of Education (DepEd) announced in September 2020 that 864 private schools were closed for the S.Y. 2020-2021 due to declining family income along with a 107-year-old Catholic school. With the current government policy of free Basic and Higher Education, the business value of the private education sector has declined over time. As a way forward, this theoretical research paper aims to provide a possible approach for the private education sector to modify its business value creation in this increasingly demanding valuation environment. The recommendation is that the private-own or non-state education sector must forge partnerships with organizations providing free and open-source platforms. Reevaluate to migrate from face-to-face classroom to online learning institution on a post-COVID world. Finally, seek government support made available for the private or non-state education sector enacting legislation that would allow funding for a blended learning system.

Keywords: Business value, value creation, private or non-state education sector, competitive positioning, COVID-19

1. Introduction

The last pandemic that occurred in this 21st century disrupted the lives of the people. The year 2020, brought by the COVID – 19 pandemic hit every part of the world and is recognized to have largely disrupted the economic mantles of each government. The private education or non-state education sector was not spared. In 2018, prior to pandemic, 42 percent of pre-primary school children were in the non-state sector, 18 percent of primary school children, and 26 percent of secondary school children also in the non-state sector, according to the UNESCO Institute for Statistics. And March 2021, UNESCO reported that COVID-19 pandemic has been extremely tough on low-cost private schools (LCPS). The economic shock caused by the pandemic has put LCPS under severe financial strain; teachers have reported losing jobs, having their salaries reduced, or not being paid at all. Thousands of LCPS have already closed permanently, and thousands more are on the verge of doing so (Alam & Tiwari, 2021).
Meantime in the Philippines, according to the 2018 census of Philippine business and industry (CPBI), there were 14,576 learning institutions active in private education in total. Concerning the number of establishments, institutions participating in secondary/high school education led with 3,409 (23.4 percent), followed by primary/primary education with 3,1255 (21.4 percent).

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