This topic is really close to my heart. I use to work at a "sausage factory" but didnt enjoy the experience at all - actually felt sorry for students.
I now run my own small school (staff of 1 - me!)
But students wanting to learn think it is better to learn:
1. Where they can get it on VET fee help
2. Where they get a diploma/degree
3. Where they fly in a fancy new aircraft
These are all things that are impossible for someone like me to offer - the whole system is loaded against the small operator even if he is turning out a far better product at far less cost.
It does amaze me that so many CPL holders cant land in a cross wind, use equipment fitted to the aircraft, inflate a tyre or wash a windscreen without the use of sandpaper - yet some of these people have a diploma in aviation management paid for by the tax payer!
End rant...