We’ve covered a few angles of the growing edu-tech sector, but have shared little about its history or rise to success. Emma Collins, a guest blogger and business writer, steps in today to fill that gap… walking readers through the progression of online learning from correspondence courses to the disruptive models we see today.

How Business Education and New Technologies Are Changing School for Everyone

Since the Internet was first introduced to the public more than two decades ago, online education has evolved from a novel (if widely unused) concept into a worldwide standard for learning. Today, the field of education is dominated by web-based programs for students of all ages, with innovative startups — led by tech-savvy “edupreneurs” — leading the way.

Long before the Internet was “invented,” computer-based programs were widely utilized to train employees in various industries. In 1994, CALCampus became the first degree-granting institution to offer an exclusively web-based curriculum, and a handful of other schools followed suit. However, these early programs were little more than electronic correspondence courses; though most of the curriculum was accessible online, students were still required to purchase textbooks and print hard copies of assignments and exams. Then, in the late 90’s, a new type of institution emerged: the for-profit online university. Unlike specific courses offered online by “brick-and-mortar” establishments, for-profit schools like University of Phoenix and Kaplan University offered full degree programs that were completely web-based. This idea appealed to a large number of students, particularly those who juggled other commitments (such as childcare or full-time employment) and were unable to relocate to a college campus in order to earn a degree.

However, the validity of for-profit universities has been called into question in recent years. Many academic experts have characterized these institutions as inferior, citing high dropout rates and low job placement among graduates despite tuition costs that are comparable to traditional college courses. A November 2011 article in The New York Times also noted that many for-profit schools have violated numerous policies related to cheating and grades, while a dozen different institutions recently allowed an undercover investigator (posing as a prospective student) to enroll in courses with phony high school credentials.

A number of American political figures — including members of the Obama Administration — have called for a more thorough investigation of the for-profit college sector in order to determine whether or not some of these schools should be stripped of their accreditation. “It is obvious that Congress must step in to hold this heavily federally subsidized industry more accountable,” said Senator Tom Harkin [D-Iowa], chairman of the Senate Health, Education, Labor, and Pensions Committee. Yet, online college is more popular with the public than ever. US News & World Report recently reported that the number of students enrolled in at least

one online course has risen annually for the last nine years; more than 6.1 million students enrolled in at least one web-based course in Fall 2011 — a 10-percent increase from the previous year. Furthermore, the National Center for Education Statistics reports that the University of Phoenix — with more than 300,000 enrolled students — is the nation’s largest degree-granting institution; the second-largest is Kaplan University, another for-profit online school.

Unlike for-profit schools that generate virtual campuses and offer full degree programs, most edupreneurs create niche-specific programs and/or software that assist teachers and professors in the classroom. As TIME contributor Anna Murphy Paul recently noted, most edupreneurial startups are comprised of a relatively small workforce – often a single individual who operates out of his or her personal residence. The goal of most edupreneurs is to “disrupt” the way students learn and process information, and they accomplish this goal by introducing strategies and programs that can be applied to a large number of classrooms. “They include former (and current) teachers, tutors, school administrators and parents,” Paul writes; “people whose interest in education goes much deeper than making a buck.”

The Institute for a Competitive Workforce (ICW) explored the value of edupreneurial contributions in a 2011 report titled “College 2.0: Transforming Higher Education through Greater Innovation and Smarter Regulation.” The report names several educational startups that have effectively “disrupted” public education by offering affordable educational opportunities that are accessible to a large number of students. One example is StraighterLine, which offers for-credit online courses; students can enroll in up to 10 courses per year for less than $1,000, and the credits for virtually every class offered on the site are transferrable.

As innovative as sites like StraighterLine have proven to be, the report also notes several barriers that hinder the long-term viability of many edupreneurial ventures. The state and federal financing systems, for example, largely fund enrollment over college completion; as a result, desirable learning outcomes do not often figure into budgetary allotments. Another concern is the “antiquated” accreditation system, which awards credentials based on “educational inputs instead of educational excellence.” Finally, the report notes that the national regulatory structure is “poorly suited” for accommodating a large number of online learners.

Despite these barriers, edupreneurs are responsible for many of the innovative resources, tools and services available to educators and students today. And as the edupreneurial movement continues its upward rise (as predicted by most experts), the state of education in the United States stands to be further disrupted by these creative enterprises.

About Emma Collins:

Emma is a business writer focused around web-based education and the disruptive models build by edupreneurs. You can read more about 2012′s best online programs from her main website.