Giving Compass' Take:

Jeff Greenstein suggests that it is time for an intervention in the education sector utilizing three different methods: social entrepreneurship, for-profit entrepreneurship, and charity. 

• Is there room for collaboration between the education and social sector?  What is the role of philanthropists in the intervention process?

• Read about five ideas for the future of education.


An investment in education is not just a monetary commitment, but also an investment in our national and global development. When we endow our children with the tools to succeed, we empower them to shape the world around them, cutting loose the bondage of poverty and powerlessness.

The educational sector is overdue for disruption. Impact investors have an opportunity to reform an archaic field to suit modern needs — and find returns for their investment portfolio or businesses, as well as society as a whole in the process. The field needs intervention; models in place today are painfully outdated even in countries that style themselves as academic leaders.

The statistics speak for themselves. Though tried and (arguably) true, the systems in place today aren’t optimal. Moreover, admittedly optimistic goals set by the United Nations have come and gone without the hoped-for progress. The achievement gap persists. As we’ve already seen in countries near and far alike. The time is now ripe for investors to make a difference in children’s lives across the globe.

Involvement and intervention in this sector trend toward three distinct methodologies:

For-Profit Entrepreneurs: These investors apply a business-centered perspective to education. They look at subpar test scores, inefficient teaching models, and struggling institutions and see a profitable opportunity to disrupt an archaic business and create financial returns.

Social Entrepreneurs: Social entrepreneurs are oriented more towards enacting positive change but, to a lesser degree, still share the above group’s interest in self-sustainability and profit.

Charity: Charities diverge from the above two categories by foregoing the drive for profit and focusing solely on driving positive development.

The determination of which approach will best suit a project usually comes down to the philosophy and intent behind the venture itself.

Read the full article about education is an impact investment by Jeff Greenstein at Medium.