E-Learning Industry Evolving

Modest growth is predicted despite tough economic times ahead.

By Katie Ash

Even in today's gloomy business climate, market experts predict that the K-12 online education industry will continue to grow, albeit at a somewhat slower pace, as rapidly increasing enrollments in virtual schools begin to taper off and the country’s economic troubles persist.

"Because the market is growing as fast as it has been, we've had plenty of access to capital in a time when so many other companies are seeing diminished access to capital," says Caprice Young, the chief executive officer of the Portland, Ore.-based KC Distance Learning , a company that provides distance-learning programs for high schools. "And that makes it possible for us to build the kinds of high-quality products and services we provide to schools."

According to a September 2008 education industry report published by the Toronto-based BMO Capital Markets Corp., a financial-services company, "the virtual school market, while still relatively new, has been growing dramatically" and will likely continue to grow at a moderate pace. The report cited increased enrollments in K-12 virtual schools, as well as other factors, such as an increase in the number of home-schoolers and students interested in...