Ban on limited companies running schools would cause chaos for 400,000 students, says business group

A proposed ban on limited companies operating schools in Sweden would plunge approximately 400,000 students into "total uncertainty and chaos," according to representatives from Svenskt Näringsliv (Confederation of Swedish Enterprise). They argue that politicians pushing for this ban are ignoring the severe repercussions, particularly the inability of municipalities to absorb these schools due to a lack of adequate facilities and teaching staff.

The opinion piece contends that a prohibition on schools run as limited companies would fundamentally disrupt Swedish education. It highlights that research and analyses indicate independent schools, particularly those structured as limited companies, often perform as well as, if not better than, municipal schools. While acknowledging that poorly performing independent schools exist, the authors assert that the worst-performing schools are frequently municipal ones.

Svenskt Näringsliv commissioned an independent analysis by the accounting and auditing firm Azets to assess the practical and economic impacts of such a ban. The report estimates the future earning potential of Sweden's limited company-run schools at nearly 40 billion Swedish kronor. This represents significant economic value that the state would likely have to compensate owners for if the ban were implemented.

The analysis also points out that the average annual margin in the independent school sector is around 5 percent, a relatively modest figure making these businesses sensitive to changes in student numbers and costs. Beyond the financial implications, the report emphasizes the practical challenges for students, parents, and municipal decision-makers, concluding that no municipal group is currently prepared to manage the phase-out of all these independent schools.