Microschools are framed through the lens of education innovation, and while they certainly are innovative with teaching and learning, microschool founders find themselves with a need to be innovative in the business world as well. It can be easy to point to education frameworks and highlight barriers to entry within the education regulations, but microschool founders consistently tell us, that’s not where the biggest barriers currently exist.
When asked “Which government requirement took the longest to understand and comply before opening your microschool?” the top four answers, coming from 58% of respondents, all involve local business regulations, not education policies.
The most frequently cited challenge, selected by 22% of respondents, was obtaining business operating approval. Even in jurisdictions that are generally supportive of microschools, founders often encounter a fundamental question from local officials: "What category does your business fall into?" The challenge is that microschools rarely fit neatly into existing regulatory classifications. As a result, founders can spend significant time working with local agencies to determine which business license categories may apply, and understand what activities are legally permitted within their chosen facility. In some jurisdictions, microschools are able to operate under a tutoring center designation, while in others that classification does not exist. Depending on the jurisdiction and facility, some founders report operating under retail business licenses with educational provisions or other unconventional arrangements. This process can feel particularly overwhelming because it is often one of the first major hurdles founders face on their journey to opening a microschool.
The next three most common responses, representing a combined 36% of founders, were all related to facilities: zoning, building code compliance/occupancy, and fire safety regulations. While part of this challenge stems from the difficulty of locating suitable and affordable space, founders frequently report that the larger obstacle is navigating inconsistent, and in some cases inaccurate, interpretations of regulations by local officials. Because microschools often do not fit neatly into existing categories, requirements can not only vary dramatically from one jurisdiction to another, but often between different officials within the same jurisdiction. These interpretations can have significant consequences, including lengthy delays, uncertainty during the approval process, and costly facility renovations such as the installation of commercial fire sprinkler systems, a catering-style commercial grade kitchen or other upgrades that may not be necessary. For many founders, the challenge is not simply complying with regulations, but first determining which regulations actually apply to their microschool and helping local officials understand the regulations that do apply.
While educational compliance can create challenges, particularly for founders seeking the flexibility that attracts many to microschooling in the first place, regulations such as seat-time requirements, testing obligations, and other educational frameworks do not take up the same amount of time to navigate as local government regulations do. These findings challenge a common assumption about the barriers facing microschools which often focuses on state education frameworks, accreditation, or school choice participation requirements. The data suggest that the most significant obstacles are frequently found much closer to home and are imposed by local governments through business licensing, zoning, occupancy, and facility-related requirements.
For states seeking to expand access to microschools, these findings point to an important opportunity: addressing the local regulatory barriers that founders encounter before they ever open their doors. Policymakers could support growth by creating more flexible pathways for nontraditional small learning environments, reducing unnecessary and outdated facility mandates, and providing clearer guidance on how existing regulations should be applied.
Zoning reform represents another significant opportunity. In many communities, microschools struggle to fit neatly within existing land-use categories, creating uncertainty and delays during the approval process. Allowing different kinds of microschools to operate in a wide range of locations could dramatically increase the number of viable microschools.
While headlines about the movement range from ESAs, to vouchers, testing mandates to funding speculations, many founders are spending their time thinking about all together different issues. They are deciphering zoning maps, occupancy requirements, and business approvals. If communities want more educational innovation, helping founders navigate these hurdles may be one of the most effective places to start.