Why Build an Education Franchise in Buenos Aires

Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Buenos Aires, Argentina is a great city with ample potential for an education business and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.

As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.

Often called the ‘Paris of Latin America’, Buenos Aires is the capital and the most populous city of Argentina. It has a large market for English learning due to a large population and importance of English learning among its populace. Further, the city has high purchasing power and is the commercial centre of the country. Here are more facts on why Buenos Aires can be an ideal location for your education franchise business.

  1. In Argentina, 40% of English learners study English at private language institutes.[vi]
  2. Buenos Aires is home to 2.89 million people (2016) [vii] while Greater Buenos Aires has a much larger population of approximately 14.5 million.[vii]
  3. The city is economically rich with its residents having 13% higher disposable income than in the rest of Argentina.[ix]
  4. Buenos Aires is the financial, industrial and commercial centre of Argentina. It is a metropolitan city with modern infrastructure and lifestyle, and has a large number of educational institutes.

Here are further reasons on why Buenos Aires is a location worth considering for an education franchise.

Education and English Learning

In Argentina, education is mandatory for children between six and fourteen. This is basic education provided from grades first to ninth. Even though mandatory by law, student dropout rate is high in some areas due to lack of good education in public schools. Primary public schools are free, but students are required to pay for their books, uniforms and stationary. Parents that can afford it prefer to send their children to private schools for better quality education. This has lead to a steady decline in enrolments in public schools. Argentines give high importance to education. The country has an impressive literacy rate of 98.1% (2015 estimate).[i] You will find a great variety of schools in Buenos Aires and its surrounding areas. For higher education, the city has reputed universities, a prominent one being the famous University of Buenos Aires. This university had the privilege of having Nobel Prize winners in science and medicine as faculty members.

The language of instruction in schools is Spanish. English lessons are given for a minimum of two hours each week for children below nine years of age.[ii] As the second language, English is widely popular in Argentina, so much so that Argentines are the most proficient in English in the entire Latin America.[iii] English is commonly used in formal settings, especially in business and media. It is interesting to note that being the world’s largest Spanish-speaking country, Argentina still ranks 15th in the world in English proficiency,[iv] and 19th in Latin America with high English proficiency.[v] According to the British Council, English in Argentina is seen as a tool for greater employability.[vi] The British Council also found a positive correlation between English learning and household income, private schooling, and educational attainment.[vi] Argentina is a large market for English learning where 40% of English learners study the language at private language institutes.[vi] The high importance of English in the country coupled with great demand for English learning mean more opportunities for an English language franchise in Buenos Aires.

Population & GDP

Argentina’s largest city and its capital, Buenos Aires is home to 2.89 million people, as of 2016.[vii] This registered a small increase of 0.03% since 2010.[vii] The Buenos Aires metropolitan area, however, has a much larger population of approximately 14.5 million.[vii]

Among major Latin American cities, Buenos Aires is the most productive.[ix] The capital city produced 38% of Argentina’s GDP in 2015.[ix] The city’s gross value added (GVA) per employee was US$34,600, which was more than that of major cities such as the Mexico City and Santiago.[ix] It also registered higher employment rate than in the rest of the country. That contributed to its residents having 13% higher disposable income than in the rest of Argentina.[ix] Higher income allowed people to spend more on education (+56% per household spending), and recreation and culture (+35% per household spending) in 2015.[ix]

Argentina, being one of the largest economies of Latin America, produced heavily with a GDP of over US$550 million.[x] It registered an economic growth of 2.4% in 2015 [x] while the average growth rate from 1994 to 2016 stood at 2.61%.[xi] The service sector represents the dominant 65% of the economy of the country.[xiv] Economically strong and stable with high spending power, Buenos Aires, Argentina proves to be a good market for an education franchise business based in Latin America.

Infrastructure and Facilities

As compared to other Latin American countries, Argentina has good infrastructure. In Buenos Aires, there is an extensive network of public transportation with its subway trains, buses, and taxis. It is the country’s main port and the primary point of access for Argentina’s foreign trade. The city has a dynamic food scene, lively bars and clubs, and celebrated architectural splendours. Famous for tango, Buenos Aires also exhibits its French and Italian style palaces, neighbourhood cafes, and of course, its passion for football. The Latin American intensity and European heritage of the people of Buenos Aires makes for a healthy cultural synthesis.

Argentina is taking huge steps to significantly improve its infrastructure. It has been investing in infrastructure and also receiving aid packages from the U.S., the World Bank, and others. In 2016, Siemens announced that it will invest $5.6 billion in infrastructure projects.[xii] In the same year, GE also announced that it plans to invest $10 billion in Argentina through 2026 for infrastructure projects.[xiii]

With its modern connectivity, rich culture and passion for football, Buenos Aires is one of the top tourist’s destinations. However, many tourists do not speak Spanish, rather they can communicate in English. This can be good news for business owners looking to open an English language franchise as there is a huge demand of English speaking staff to aid tourists in Buenos Aires.

Government Incentives to Businesses

There are approximately 493,000 companies registered in Argentina in manufacturing, retail and wholesale.[xiv] As Argentina has had an open economic policy towards foreign investors, today some 2,000 foreign subsidiaries operate in the country.[xiv] Foreign investors are protected by the foreign investment law and require no prior approval. They have the same rights and obligations as domestic investors.

Argentina has signed bilateral investment promotion and protection treaties with a number of countries, including Australia, U.S., U.K., China, Germany, Canada, and Spain.[xiv] Moreover, it has double taxation agreements with Australia, the U.K., Canada, Brazil, and others to help companies avoid double taxation. This provides considerable protection and opportunities to an English language franchise business. Additionally, the government offers deductions and tax incentives to businesses to help them limit their liability.

Conclusion

A large market with high demand for English learning and higher spending power, Buenos Aires offers substantial opportunities to an English language franchise. The fact that the city is an economic and commercial centre of Argentina contributes to making it an ideal location for a franchise business. If you are planning to open an education franchise in Latin America, Buenos Aires might be the city for you.

New Horizons English Overview

We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.

The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).

New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.

The New Horizons English teaching method enables students by giving them three key learning advantages:

  1. Learn at your own pace
  2. Learn anywhere, anytime with Online Live®
  3. Learn with your own teacher with Mentored Learning®

All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.

How does it work?

The New Horizons English Method uses the natural method of second language acquisition which focuses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.

The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.

Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.

We genuinely believe now is the right time for a new and modern approach to an English language franchise in Buenos Aires, Argentina. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.

Sources

[i] https://www.indexmundi.com/argentina/literacy.html

[ii] https://www.angloinfo.com/how-to/argentina/family/schooling-education

[iii] https://www.buenosairesherald.com/article/178605/argentines-have-best-english-in-latam

[iv] https://monitor.icef.com/2015/10/the-market-for-english-language-learning-in-argentina/

[v] https://www.ef.com/wwpt/epi/regions/latin-america/argentina/

[vi] https://ei.britishcouncil.org/sites/default/files/latin-america-research/English%20in%20Argentina.pdf

[vii] https://worldpopulationreview.com/world-cities/buenos-aires-population/

[viii] https://www.worldometers.info/world-population/argentina-population/

[ix] https://www.euromonitor.com/buenos-aires-city-review/report

[x] https://www.worldbank.org/en/country/argentina/overview

[xi] https://www.tradingeconomics.com/argentina/gdp-growth-annual

[xii] https://www.bloomberg.com/news/articles/2016-09-14/siemens-agrees-to-5-6-billion-argentina-infrastructure-project

[xiii] https://fortune.com/2016/09/19/ge-plans-to-invest-10-billion-in-argentina-through-2026/

[xiv] https://www.mrecic.gov.ar/userfiles/investors_guide.pdf