Business in EDUCATION Sector

Small or medium sized business in Education sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the Education  sector. Otherwise, the probability for failure may be high.

Below are some of the selected businesses in education sector.  SMEDA has also made very good pre-feasibility studies on this sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports by SMEDA on Business in Education sector for you to get an idea before you download the full version.

1 - High School 

Region: Punjab
Investment Size: PKR Between 5-10 Million

This SME venture entails establishing a high school in Lahore, the second largest city of Pakistan. The school will be catering to children of middle to low income economic stratum, recognizing the need for a high caliber yet low-cost institute. Being cognisant of the financial constraints of most parents, the school will charge an affordable fee. The school will practice advanced educational procedures – using modern teaching methodology, covering an extensive curriculum which is up-to-date with international standards, and hiring qualified and experienced faculty. The school will have state-of-art infrastructural facilities including spacious classrooms, well-equipped science and computer laboratories, and a resourceful library. Evident from the performance of education sector in Pakistan, quality education is a luxury only the rich can afford. Despite the efforts made by the government, most public schools are failing due to shortage of qualified or committed teachers, limited curriculum and out-dated teaching methods. With inadequate financial resources of the government, private sector investment is the only hope left for the revival of the education sector. Primary to high school level education is most crucial for initial development of a child and his future as a professional. Admission to the best colleges and universities is mostly dependant on the quality of education a student receives till his matriculation. Keeping this in mind, establishing high schools will be the most beneficial decision an entrepreneur can take to help rebuild this sector. The total project cost for setting up this school is estimated at Rs. 6.367 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 14.736 million, with an IRR of 65% and payback period of 2.38 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The overall proposed capacity of the school is 735 students. Each class level from Nursery – Matriculation has two sections. The maximum number of enrollments per class is limited to 30 students, to keep a manageable student-teacher ratio and to allow maximum attention for each student. The proposed building will be acquired on rent, covering an area of 3-Kanals to accommodate the proposed student strength.

2 - IT College 

Region: Punjab
Investment Size: PKR Between 1-2 Million

This document describes the investment opportunity about setting up a college of providing educational & training services in Information Technology. The college can start mainly by offering short courses and with the passage of time can venture to develop into a proper degree awarding authority. The institute can be established in any of the major cities of the country. However, with a phenomenal growth of IT colleges in Karachi, Lahore and Islamabad, a college offering quality education and wide course options, opened up in other large peripheral cities is expected to earn early recognition and student preference. The project will offer following short courses in the initial phase. - Visual Basic + SQL Server (Database) - 3-D Graphics - CCNA (Networking) - Microsoft Certified Service Engineer (MCSE) - Applications Software (IT Office) - E-Commerce - Auto Cad This combination is designed according to the needs of a particular target market and is by no means rigid. Each individual entrepreneur will have to carry out a market research and offer a course offer corresponding to the educational needs and requirement of his particular community and city.

3 - Montessori School 

Region: Punjab
Investment Size: PKR Between 2-5 Million

This project involves establishing a Montessori school in big cities of Punjab, starting classes from Play-group to Class II. The target market of this school is children, 3 – 7 years of age, belonging to the middle income group. The school will provide quality education starting at the Elementary level charging an affordable fee. The school will practice advanced educational procedures – teaching an extensive curriculum and using modern teaching methodology in sync with international standards. Qualified and experienced faculty will be hired. The school will have sophisticated infrastructural facilities, spacious classrooms, and wide-ranging learning material from books to toys for a good educational experience. Schools with high reputation have a stringent admission selection process, for which Montessori schools provide the necessary training. This has given rise to high demand for Montessori school systems that can prepare children for admission to reputable Primary schools. With the growing population and a limited number of schools, establishment of elementary schools has become a requirement for necessary educational training starting at an early age. The total project cost for setting up this school is estimated at Rs. 4.533 million out of which the Capital Cost is estimated at Rs. 2.533 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 10.647 million, with an IRR of 63% and payback period of 2.50 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The overall proposed capacity of the school is 300 students. Each class level from Playgroup – Class II has two to three sections. The maximum number of enrollments per class is limited to 20 students from Playgroup till KG II and 30 students for class I and II. The proposed building will be acquired on rent, covering an aprox. area of 2.5-Kanals to accommodate the proposed student strength



For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration



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