In my 30-minute break today, I decided that I wanted to learn about currency trading. I turned to my self-education resource, Khan Academy. KA is an incredible exemplar of innovation. It has guaranteed schooling for impoverished youth in remote areas, revolutionized education in certain American districts, and received backing from very influential parties – most notably Google and Bill Gates.
[youtube=https://www.youtube.com/watch?v=UuMTSU9DcqQ]
Most incredible, however, is that Khan Academy is completely free. One 33 year-old Harvard MBA runs it all from inside his closet.
Khan Academy is a non-profit organization. I know, a non-profit isn’t technically a “company” (actually, in the UK it could be) but for all purposes, Khan Academy really is a company: it manages an inwards flow of money (donations = investments, with “social” returns¹), provides a product, creates demand, and maintains “customers.” Despite not being a formal company, Khan Academy is making millions.
Khan Academy has transformed over the years from simple video clips about few subjects to a comprehensive library of knowledge. The next step for the creator, Salman Khan, has been to develop online education systems (also free) that not only provide more detailed and useful information about a student’s capability, but also allow for the rapid learning that is promoted in Khan Academy’s motto. The new education systems are being hailed as truly game-changing programs.
According to Schumpeter, Khan Academy has 3 of the 4 entrepreneurial characteristics: it has expanded its catalogue of products; it’s hitting new markets; it’s using new methods of organization.
The only thing Khan Academy isn’t changing is its production methods. Sal still operates out of his closet.
Source: CNN Money
Note 1: I made up “social returns” to mean when someone invests, or donates, and expects in return — for themselves or for others –the ability to continue using the product/service. In other words, the value that they get from the service is the return on their investment.
[youtube=https://www.youtube.com/watch?v=itoNb1lb5hY]