online learning

Vocational online learning platforms

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Vocational online learning platforms

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education Technology
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Quality Education (SDG 4) Decent Work and Economic Growth (SDG 8)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9)

Business Model Description

Train professionals and employees on-demand digital corporate micro-learning platforms by offering courses that range multiple topics enabling professionals to gain relevant skills to apply in their daily activities and job-related problems.

Expected Impact

This initiative intends to keep workers updated so that there is a workforce of the best quality and so that workers can exploit and update their skills.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

Disclaimer

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The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

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Country & Regions

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Sector Classification

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Sector

Education

Development need
> Illiteracy rate for the population aged 15 years average of 4.8% by 2019, greater for men than women (5.0% vs. 4.5%) and greater for rural areas (10.9%) than urban areas (3.1%).

Policy priority
> The Institutional Strategic Plan of the Ministry of Education under construction and the National Ten-Year Education Plan 2016-2026 seek to regulate the scope of education, build an effective educational system, public policy for training educators, promote the use of new technologies, give priority to the development of rural population, among others.

Gender inequalities and marginalization issues
> 10.4% of women who identify themselves as peasant women do not have any educational level. 44.4% reach the basic elementary level.

Investment opportunities
> The government plans to invest in quality education for a future with opportunities for all USD$ 60B (18) > It also has an additional +USD$ 5B budgeted for the digital transformation pact (18)

Key bottlenecks
> Only 42.56% of households in Colombia have computers and/or tablets, reducing the population that can get internet access > 23.8M people have no internet presenting significant asymmetries between urban and rural, where 45.7% in the head municipalities have connectivity vs. 6.2 % in scattered rural areas

Sub Sector

Education Technology

Development need
> Only 38% of the country's high school graduates continue with higher education. > 63% of those who study a professional technical career, have a labor link, while technology careers have 72% and university students 80%. > Only 9% of undergraduate graduates in Bogota continue their higher education studies, being the capital the one with the highest percentage. > Even private higher education has decreased 15.5% in its income from September 2019 to September 2020.

Policy priority
> The Institutional Strategic Plan of the Ministry of Education under construction (2019-2022) is betting on promoting an inclusive and quality higher education. Above all, the above is done through investment towards the quality and permanence factors of the students by strengthening the technological infrastructure.

Gender inequalities and marginalization issues
> The gap in the employment rate between men and women has a positive trend since 2016. By 2019 it reached 37.2 percentage points (13) > Rural women have an even lower employment rate than in urban areas (34.6% vs. 48.7%) (13) > The unemployment rate for any educational level is higher for women than for men

Investment opportunities
> The National Development Plan promotes quality education and seeks to improve Colombians' job training to obtain knowledge and skills that respond to market needs to increase workforce productivity and reduce unemployment. The plan also aims to expand digital transformation, encompassing the offer of virtual and distance programs as a new alternative for access to higher education (18).

Key bottlenecks
> Only 42.56% of households in Colombia have computers and/or tablets, reducing the population that can get internet access > 23.8M people have no internet presenting significant asymmetries between urban and rural, where 45.7% in the head municipalities have connectivity vs. 6.2 % in scattered rural areas

Industry

Educational Technology

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Vocational online learning platforms

On-demand digital corporate micro-learnings platforms delivering employability, technical and/or vocational skills.
Business Model

Train professionals and employees on-demand digital corporate micro-learning platforms by offering courses that range multiple topics enabling professionals to gain relevant skills to apply in their daily activities and job-related problems.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

> USD 1 billion

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

10% - 15%

> The worldwide e-learning market is projected to be worth USD$ 325B in 2025. The market size in LatAm is USD$ 3.0B (2023), out of which Colombia enjoys a 39% share (USD$ 1.2B) (16)

> The global e-learning market is growing over 14% annually, being LatAm the fourth largest market with expectations to generate revenues of USD$ 3B in 2023 (12)

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

> 25%

According to several studies, the return of an investment in professional training platforms are in the ranges of 20-40% in gains in productivity and new sales for companies (17).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

According to local investors interviewed, an expected holding period for investments in technical or vocational online learning platforms would be between 4 to 7 years.

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

> Lack of internet infrastructure and connectivity in remote areas to enjoy the proper conditions that a hybrid educational system demands require an expensive investment and coordination between stakeholders.

Market - Sufficient Supply

> There must be enough courses for different professions and different specialization levels to make this service attractive to many employees and professionals.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

> Colombia's human capital productivity is low, measured as GDP per employed worker, it grew at 2.1% annually (2003- 2017). The average worker's productivity in Colombia is 1/4 of that of the average worker in the United States and 1/3 of that of the average European worker (1).

> Lack of training and education opportunities result in Colombians not fulfilling basic requirements made by companies and accessing informal jobs that provide no possibilities of development nor stable labor contracts. This is reflected by a high talent mismatch index (6.4, in 2018) (2).

> According to data from the Household Survey, currently, only 3% of working-age adults (15 to 64 years) received some training in the previous three months (7).

Gender & Marginalisation

> The gap in the employment rate between men and women has a positive trend since 2016. By 2019 it reached 37.2 percentage points (13).

> Rural women have an even lower employment rate than in urban areas (34.6% vs. 48.7%) (13).

> The unemployment rate for any educational level is higher for women than for men.

Expected Development Outcome

> Increase workforce employability to boost productivity by speeding up the reallocation of labor from less-productive activities to more productive ones and improving workers' wellbeing.

> Expand access to new jobs, make employment more inclusive, and offer existing firms opportunities to access new markets to expand sales and create more jobs (3).

> Allow workers to choose and receive training according to what they identify as needs. This will improve your job profile.

Gender & Marginalisation

> Women can use these platforms for their education and growth while being at home, improving their professional profile. Mothers, heads of families, who cannot leave their children alone, will be able to have a possibility of studying remotely that fits their schedules.

> Women from rural places, due to their remoteness or geographic location, may have greater access to quality education and therefore improve their professional profile.

> Women will also adjust their learning plan according to their educational levels to advance in their professional growth and reduce the differences with men.

Primary SDGs addressed

Quality Education (SDG 4)
4 - Quality Education

4.5.1 Parity indices (female/male, rural/urban, bottom/top wealth quintile and others such as disability status, indigenous peoples and conflict-affected, as data become available) for all education indicators on this list that can be disaggregated

4.3.1 Participation rate of youth and adults in formal and non-formal education and training in the previous 12 months, by sex

4.6.1 Proportion of population in a given age group achieving at least a fixed level of proficiency in functional (a) literacy and (b) numeracy skills, by sex

Current Value

> Colombian's coverage rate in higher education in 2019 was higher for women than for men (55.7% and 48.9%, respectively). This rate varies greatly depending on the department, led by the capital but with a range from 2.9% to 100% (22). > Access to higher education is inequitable, almost four times higher in youth with higher income (58%) than with lower income (15%) (31).

> Double degree students reach 140k students in 2019 (14).

> Illiteracy rate for the population aged 15 years and over has been showing a downward tendency with the national average of 4.8% by 2019, more significant for men than women (5.0% vs. 4.5%) and greater for rural areas (10.9%) than urban areas (3.1%). Departments' information ranges goes from 1.6% (in the capital) to 14.3% (2019) (22).

Target Value

> Colombian's coverage rate in higher education is expected to be 80% by 2030 (22).

> Colombia is expected to reach a figure of 650 thousand students with double degrees by 2022, which represents an increase of 23% (31). > By 2022, it is also expected to have 320k vulnerable students benefiting from Generation E (31).

> Illiteracy rate for the population aged 15 years and over is expected to reach 3.0% by 2030 (31).

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.3.1 Proportion of informal employment in total employment, by sector and sex

8.5.2 Unemployment rate, by sex, age and persons with disabilities

Current Value

> Formality rate has been showing an upward trend since 2010. As of 2019, this rate was 52.6% (31).

> Unemployment vary from department to department, with a range from 5% to 15.3%. The national average as of 2019 was 10.5% (31).

Target Value

> Formality rate is expected to be 60% by 2030 (31).

> Unemployment is expected to reach 6.8% in 2030 (31).

Secondary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

Directly impacted stakeholders

People

> 36M of people that make up the labor force in Colombia (4). > +220k students whom each year go through higher education and aspire to further specialization or further study (28).

Gender inequality and/or marginalization

> +2M higher education students located in rural areas (28). > +3% of indigenous people who have university or technical studies.

Corporates

> 1.6M companies registered in Colombia (5).

Indirectly impacted stakeholders

People

> 85% of low-income youth who cannot access higher education (31).

Public sector

> The MinEducacion may decrease the dropout rate from education due to new possibilities and projections for students.

Outcome Risks

> Excess screen exposure can cause eye problems.

> Overuse of screens without the necessary occupational health guidelines can create problems in the hands, wrists, and general upper body.

Impact Risks

Execution risk: > It is necessary that all possible students have access to the internet and the necessary equipment for their development on online platforms. > Students should have a developed digital language to handle all the tools they present and take advantage of all the benefits.

Stakeholder participation risk: > Both course developers and employers need to be on-board with these initiatives to work for employees. > Course developers should be broad enough to cover different fields and increase specialty courses if demand dictates.

Drop off risk: > If students do not perceive a direct benefit from the courses, in addition to time-spaces, they may not finish the courses offered.

External risk: > Lack of internet infrastructure and connectivity in remote areas to enjoy the proper conditions that a hybrid educational system demands. > Training offers may not be adequate for all profiles, and employers might not consider certified offerings valid to increase employability and hire new personnel.

Unexpected impact risk: > Weather conditions that hinder infrastructure or internet transmission. For example, strong winds or other natural disasters that damage the connection.

Gender inequality and/or marginalization risk: > Some rural people may have connection difficulties or lack of tools to have an adequate study. In addition, some people may need the necessary leveling to continue with more advanced studies.

Impact Classification

C—Contribute to Solutions

What

Positive and important outcome due to better-prepared workforce.

Who

Various stakeholders that would benefit from a boost in capabilities from employees, and as such, all the related network experiencing an increase in productivity of different enterprises.

Risk

Unskilled or outdated workforce.

Impact Thesis

This initiative intends to keep workers updated so that there is a workforce of the best quality and so that workers can exploit and update their skills.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

(National Development Plan): Provide quality education and improve job training for Colombians to obtain knowledge and skills that respond to market needs to increase workforce productivity and reduce unemployment. The plan also aims to expand virtual and distance programs as a new alternative for access to higher education (18).

(Technologies to learn): Seek to generate projects that respond to the needs of the territorial context with the Tecnoacademia program, as well as creating spaces for innovation and teachers involvement in the construction of educational paths, which will strengthen students who enter higher education and facilitate capacities to the labor market. Developed by SENA, together with the Computers for Education program(27).

(Ten-Year National Education Plan 2016-2026): In 2017 launched the "You Choose" program for 35,000 Colombians (28), by ICETEX to grant credits to finance higher education.

Financial Environment

Financial incentives: Yunus Capital invested in Provi, a platform that enables young people to enter higher education. They provide tailor-made credit at low to zero interest rates, enabling young people to undertake transformational courses (8). Ewa Capital invested in Platzi, a digital education platform with a Latin America and Spain presence that offers courses in entrepreneurship, digital marketing, software development, and coding, complementing students' critical soft skills (9).

Fiscal incentives: Law 115 of 1994 establishes that employers can annually deduct from their taxable income up to 130% of the expenses for salaries and social benefits of workers hired in vocational training programs previously approved by SENA.

Other incentives: Startups such as Ubits, Creahana, Domestika are platform-based education platforms that have participated in Y-Combinator and received funding from investors such as Acumen (21).

Regulatory Environment

(Law 1064 of 2006): states that the MinEducacion and ICETEX may allocate funds to promote Higher Technical and Technological Education in quality-certified institutions. in 2014 there were 3,410 private, 20 public, and 22 mixed institutions (19)

(Decree 2226 of 2019): Article 17 requires the SNCTI to coordinate with the MinEducacion and MinTrabajo to incorporate technology in professional and work formation. Article 19 seeks digital literacy in learning skills in professional and work education (26).

(Law 115 of 1994): Establishes that employers can annually deduct from their taxable income up to 130% of the expenses for salaries and social benefits of workers hired in vocational training programs previously approved by SENA (29).

Marketplace Participants

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Private Sector

Start-ups such as Ubits, Creahana, Domestika are platform-based education platforms that have participated in Y-Combinator and received funding from investors such as Acumen (21).

Government

SENA is the leading public job training provider offering tertiary technical and technological education through certified courses and apprenticeship contracts (20). Computers for Education is a government program that promotes educational innovation through the access, use, and appropriation of technology in educational centers in the country (30).

Multilaterals

Technical sector roundtables, University-Business-State Committees, and Productive Alliances organized by the MinEducacion and the Private Competitiveness Council (CPC) conduct regional and cluster level pilots to identify gaps in human capital and design training plans (20).

Target Locations

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References

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    • (1) Eslava, Meléndez (2018) - Productividad laboral y capital humano para el crecimiento verde. Accessed Jun 15 2020
    • (2) Oxford Economics (2019) – The Hays Global Skill Index. Accessed Jun 15 2020
    • (3) OECD (2016) – Enhancing Employability. Accessed Jun 18 2020
    • (4) DANE (2019) – Mercado laboral; formación para el trabajo. Accessed Jun 18 2020
    • (5) Confecarmaras (2019) – Informes de Coyuntura Empresarial
    • (6) DANE (2020) – Mercado laboral por departamentos 2019
    • (7) BID (2014) Los tres grandes desafíos de la formación para el trabajo en Colombia. Accessed May 18, 2020
    • (8) Yunus' Portfolio: Provi - https://www.yunussb.com/portfolio/provi.Accessed February 8th
    • (9) Ewa|Portfolio Companies: http://ewa.capital/portfolio/.Accessed February 8th
    • (10) Soy Henry: https://www.soyhenry.com/.Accessed February 8th.
    • (11) Yunus' Portfolio: Arbusta -https://www.yunussb.com/portfolio/arbusta.Accessed February 8th
    • (12) Universidad de los Andes (2013) – Desafíos del Elearning y del Blearning en educación Superior
    • (13) DANE (2020) Rural Women
    • (14) Conexión Capital (2019) Doble degree for more than 140k students in 2019
    • (16) EADBOX (2019) - E-learning en Latinoamérica, mercado en crecimiento. Accessed June 15th 2020
    • (17) Nicolau (2014) - E-Learning Platforms for Professional Training Providers. Accessed June 5h 2020
    • (18) DNP (2017) – Plan Nacional de Desarrollo 2018-2022. Acceso Mayo 2, 2020
    • (19) MinEducación (2006) Ley 1064 Julio 26 del 2006. Acceso Mayo 2, 2020
    • (20) BID (2016) - Avances y retos en la formación para el trabajo en Colombia. Accessed May 18, 2020
    • (21) Forbes (2020) - La plataforma de capacitaciones que triplicó sus usuarios por la cuarentena. Acceso June 1, 2020
    • (22) National Planning Department (2019) - 2030 Agenda in Colombia
    • (23) National Quality of Life Survey - Amazon (2019) DANE
    • (24) National Quality of Life Survey - Caribbean (2019) DANE
    • (24) National Quality of Life Survey - Pacific (2019) DANE
    • (26) Administrative Department of the Public Function (2019) Decree 2226 of 2019
    • (27) DNP, MinEducacion and MinTIC (2020) Technologies to Learn: National Policy to promote innovation in educational practices through digital technologies
    • (28)MinEducacion (2016) Ten-Year National Education Plan 2016-2026
    • (29) Colombian Congress (1994) Law 115 of 1994, article 189
    • (30) Computers to Educate Offical Web Page. What is Computers to Educate Program? Accesed February 8th.
    • (31) DNP (n.d) Quality education for a future with opportunities for all. National Development Plan
    • (32) The Insight Partners (2019) South America EdTech and Smart Classroom Market