Opening an institution in a mid-sized town: the territorial study

Opening a higher-education institution in a mid-sized town is a real opportunity: less competition than in a major city, strong local roots, and local companies in need of skills. But this opportunity only turns into a viable project if it is verified methodically. The territorial study is the step that separates a solid project from an unverified hunch. Here is what it must cover.

Why the territorial study is the first step

Before thinking about a building, a brand or an academic programme, a project owner must answer a simple question: does this territory have the need, and the means, to host a new institution? This question breaks down into several lines of analysis, which must be addressed in order, since each one determines the relevance of the next.

A rushed territorial study leads to costly mistakes: premises oversized in relation to the actual recruitment catchment, a training offering disconnected from the needs of local companies, or underestimation of already established competition.

Analysing the employment area and the needs of companies

An institution only makes sense if it meets a skills need that can be identified locally. This analysis must cover:

• the territory's dominant sectors of activity and their recruitment needs;
• the presence or absence of companies likely to host work-study (alternance) students or interns;
• the fields already covered by the existing training offering, and those that are not;
• local economic development projects (business parks, company relocations) that could create new skills needs in the coming years.

This step makes it possible to steer the choice of training fields towards those with genuine local traction, rather than towards a standardised offering unconnected to the territory's economic fabric.

Mapping competition and complementarity

A mid-sized town rarely hosts a large number of higher-education institutions, but the existing offering must be mapped precisely:

• public and private institutions already present, and their fields of training;
• levels covered (post-secondary, bachelor's, master's, short courses);
• perceived occupancy rate and local reputation of existing institutions;
• areas of overlap to avoid, and areas of complementarity to occupy.

The aim is not necessarily to avoid all competition, but to position the institution on an offering that complements the existing landscape rather than duplicating it.

Checking mobility and accessibility

An institution in a mid-sized town must be accessible to a recruitment catchment that often extends beyond the town where it is located alone. It is advisable to check:

• public transport links from surrounding towns and the main road routes;
• the presence of a railway station or a service allowing the recruitment catchment to be widened to a regional scale;
• the student housing solutions available locally, an often decisive point in a mid-sized town where supply is limited;
• proximity to other useful facilities (libraries, sports facilities, community life).

Assessing available premises

The choice of premises follows from the preceding analyses, never the other way round. Once the recruitment catchment and the training offering have been calibrated, it is advisable to assess:

• the availability of premises suited to higher education (classrooms, group workspaces, accessibility);
• the potential for expanding floor space if student numbers grow;
• the cost of setting up and fitting out, weighed against the scenario for growth in student numbers;
• the visibility and image of the building, which contribute to the institution's credibility in a town where word of mouth plays an important role.

Involving local institutional players

Opening an institution in a mid-sized town benefits from the support of local institutional intermediaries, whose knowledge of the territory complements the market study:

• chambers of commerce and trades (chamber of commerce and industry, chamber of trades), which often have a detailed view of the recruitment needs of local companies;
• local authorities, which may have a direct interest in a higher-education institution setting up in their territory, with a view to attractiveness and retaining young working people;
• guidance players (secondary schools, information centres), which are useful intermediaries for making the offering known to potential candidates.

These discussions do not replace the territorial study, but they make it possible to test it against perceptions on the ground and to identify weak signals that do not always appear in the available macro-economic data.

Anticipating the project's real timeline

A project owner often underestimates the time needed between the decision to open an institution and welcoming the first cohort. This timeline must include:

• the time needed to finalise the territorial study and the business plan;
• the search for and fitting-out of premises, a step that may encounter unforeseen delays (permits, works);
• the time needed to build or adapt the academic offering to the local context;
• the duration of a recruitment campaign for the first learners, which must start early enough not to be constrained by the school calendar.

A project that underestimates this timeline runs the risk of rushing structuring decisions, particularly on the choice of premises or the building of teams.

Relying on an already proven model

Conducting a complete territorial study alone requires time and a method. This is why some project owners choose to rely on a structured education group, able to provide a territorial analysis method and support for setting up. BSG Group offers this type of support as part of its franchise development, with a method that makes it possible to objectify the decision to set up rather than basing it solely on the project owner's conviction.

FAQ

What is the minimum town size to consider an institution?

There is no universal threshold: relevance depends on the actual recruitment catchment, including surrounding towns and mobility routes, and not solely on the population of the town where the institution is located.

Should you wait until you have found premises before launching the territorial study?

No: the territorial study must precede the search for premises. It determines the appropriate size and location, which then guide the property search.

Is the territorial study enough to secure the opening of an institution?

It is an essential step, but not the only one: it must be complemented by building the academic offering, the administrative set-up and the operational preparation of the launch.

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