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.