I agree - very hard to start a (long-course) educational institution without first establishing the credibility (in the actual industry, not to the govt.) of the certificate you get at the end of it.

What a system like this really needs is a strong way for future employers of graduates to rate their relative ability (eg. 'according to our benchmarks this person's ability in python lies _x_ far between the average coder on github and [insert famous python user here]').

Perhaps establishing 'credentialing' should come before establishing a school?