Exploring the challenges faced by a university of technology in generating third-stream income
Abstract
The financial sustainability of public universities in South Africa has become uncertain,
particularly since the FeesMustFall campaign, leading to changes in government policies on
tuition and residence fees. This study focuses on the challenges faced by a university of
technology in generating third-stream income, a critical aspect of financial sustainability. The
South African higher education landscape is characterized by government funding constraints,
limited tuition fees, and shifts in funding models, such as the transformation of the National
Student Financial Aid Scheme (NSFAS). The study explores the intricacies of income
generation in the context of a university of technology, considering the impact of government
policies, funding sources, and the competitive higher education sector. Utilizing a case study
approach, the research aims to provide practical insights into overcoming these challenges,
contributing to the broader discourse on financial sustainability in higher education. The findings
are expected to offer valuable recommendations for universities striving to enhance their income
generation strategies amid an evolving educational landscape.
The study employed a qualitative research approach, incorporating structured questions in
qualitative questionnaires to explore challenges faced by a university of technology in
generating third-stream income. These structured questions allowed participants to express
their views on the research. The research followed an interpretivism research philosophy with
an inductive approach. Qualitative data collected were analysed using Atlas.ti software.
This research delves into the challenges faced by a university of technology in generating thirdstream
income. The study identifies and comprehensively discusses the challenges inherent in
the university of technology's internal and external landscapes. Internally, issues related to
institutional structure, bureaucratic procedures, and resistance to change necessitate
transformative efforts for effective income generation. External challenges, including financial
and legal constraints, require a nuanced understanding and targeted interventions to ensure
sustained growth in income-generating initiatives. Recognizing the importance of public
perception and reputation, the study emphasizes strategies aimed at enhancing the university of
technology's image, aligning activities with its reputation, and effectively communicating their
value. The research underscores the need for a holistic and integrated strategy that
encompasses cultural transformation, financial prudence, and proactive reputation
management. Successfully navigating these challenges positions the university of technology to
thrive in the dynamic landscape of income generation within the higher education sector.