Hank [BS/MSEE,
MSM $$$, Ph.D. Mgmt] teaches 
A basic tenant I espouse for entrepreneurship students is fractures and stresses in our Social, Technical, Economic & Political (STEP) environments often result in great opportunities for starting new businesses. Take for example, the current “housing crisis” which is resulting in record home foreclosures in specific areas. So what happens when a home is foreclosed? People have to move, and likely as not, school-aged children are involved. Parents are often reluctant to pull kids out of their schools for many reasons: Often foreclosure results in moving to much less desirable digs, and less advantaged schools; kids don’t want to lose their friends, you name it.
What are parents to do? More than a few have starting using fake and/or false addresses within the school district where their house foreclosed, keeping their kids in the same school. School districts don’t like this. It costs districts somewhere between $7-14,000 per child per year (5/21/08 WSJ p. D8) It’s easy to see how this could run into big bucks for a given school district covering high foreclosure areas such as LA & Las Vegas.
So where’s the entrepreneurial opportunity here? Firms specializing in address verification are the sweet spot in these areas. The number of contracts one such service runs in the Chicago area went to 32 school districts from 23 in just one year (same WSJ article), with a caseload increasing to 7,000 from 3,000. School districts are also hiring demographers to check student addresses as full time employees. Anonymous tip lines are being set up also. Just think, for every 100 students ruled ineligible by a school district to attend their schools, about (14-7thousand)/2X100 = $350,000 is saved. Not chump change. Hank
Ah, a low-tech approach to entrepreneurship…I sort of forgot that exists :o)
The school district pay’s more than expected, but on the other hand it gets more students and a bigger name. If those students study in their respective districts, the overall economy is not going to be affected but district savings are going to have a massive impact.
Also, such problems in a country, lead to new oppurtunities for starting new business.
Its kind of a sore subject to get into in my perspective because I have been witness to alot of friends getting their houses foreclosed and having to move to a different location. In my opinion there should be ways for kids who have to move to different districts for them to be given an opportunity to still go to that school. If the standards of that school in which the student use to go to is significantly higher, why should students be forced to a lower standard if that same school is within range?
As for the entrepreneurship, its a great way for the districts to save a healthy amount of money by helping them verify addresses but my suggestion is to reconsider the policy.
I have seen this done and know personally a friend that did this. The first thing that must be considered is “why”. Why are parents being fraudulent and saying they live in the district? In my friends case, if they had been honest then she would not have been able to stay in the honors program that she was in. So then she might not have received the benefits of being in a rigorous program and go on to be a National Merit Scholar and choose any college she wanted to attend. So, yes it is illegal and presents a challenge for funding in districts that think that they have citizens paying these taxes that support the school system. But, like mentioned in an earlier post, perhaps the policy needs to be looked at.
Unrelated to education, an economic downturn can be a perfect opportunity to prosper as an entrepreneur. Many great inventions come out of necessity, so when money gets tight, people get creative.
Also, I have referenced an article from CNN Money about how to expand your business as an entrepreneur while other companies’ or even the entire industry’s sales are shrinking. It’s a short read if you want to check it out.
Someone should start a service that maybe talks with the school/parents/local governments to find a way so parents with foreclosed homes can have their children remain legally at their original school. Even if you charged a small fee it would still save schools tons of money.
It’s a hard perspective to take. A parent wants to keep their kid in a better school to give them the opportunities they never had growing up, but at the same time they’re bound by governmental obligation on where they need to move and it typically is away from the school the child is currently enrolled in.
As far as entrepreneurship value, it seems like a great source if you can manage the system. It would have to be more integrative than keeping tabs on the local yellow pages, but if you had a verification system it would help maintain an education budget for the schools. As I recall from being in elementary school or high school, they seem to always be hurting for budget money, slicing off art programs, music programs, things of the like. Where do you think this money might be most beneficial for the schools? It doesn’t matter, as long as they can keep the money they have from prospecting students caught in bad situations. It is cold, based on the idea that it is not the students fault, but sometimes that’s the way it has to be.
I see an opportunity with this situation in the need of the families that are been forced to move. I’m sure there are many legal issues with this, but I would be interested to know if there is a way to charge these “foreclosed families” in order for them to keep there children in the same school. I think the best way to approach this situation is supplying the demand that is most beneficial to the community. I don’t think address verification and making sure kids are in their proper school district (as opposed to the district that is best suited for them) is the most beneficial approach. I believe everyone in the community would benefit if there was a way for kids to stay in the same schools and pay the money to be in the schools even though they live in a different district.
In my country, I have never heard issues regarding ‘foreclosed homes and families’. It new and surprising for me to know that parents can’t keep their children in the best school which suits them regardless of their home location! Any ways this sounds like a good way to make money, but according to me its an unethical approach towards a ‘family’, specially children and their education.
Who this would destroy kids opportunity in Chicago to go to the good schools. But implement this anywhere in Chicago, money will be made. Half the city and everyone I grew up with went to schools outside of there district.