Transcript Reforming Higher Education: Lessons Learned in the

Academic Entrepreneurialism
and Private Higher Education
(in a Comparative Perspective)
CHEPS, 12 October, 2006
Professor Marek Kwiek
Center for Public Policy
Poznan University, Poznan, Poland
[email protected]
www.cpp.amu.edu.pl
Overview
• EUEREK – European Universities for
Entrepreneurship (2004-2007), 6 FP
– 25 universities across Europe
• Entrepreneurialism as a conceptual framework to
analyze PHE?
• Clark’s five elements of an entrepren. University
• Today: „the diversified funding base” in detail
• And conclusions about all five elements in PHE
EUEREK case studies
• The University of Buckingham (UK)
• Jönköping University (Sweden)
• TCUM – Trade Cooperative University of Moldova
(Moldova)
• UCH – the Cardenal Herrera University (Spain)
• Academy of Hotel Management (Poland)
• University of Pereslavl (Russia)
• 25 European universities in total, 7 countries
Introduction (1)
Private higher education is one of the most dynamic
and fastest-growing segments of postsecondary
education at the turn of the 21st century. A combination
of unprecedented demand for access to higher
education and the inability or unwillingness of
governments to provide the necessary support has
brought private higher education to the forefront
(Altbach 1998: 1)
Introduction (2)
The demographics of private higher education:
• The major center: East Asia, about 80 percent of all
students in: Japan, South Korea, Taiwan, and the
Philippines
• The USA (surprisingly) – only 20 percent
• Western Europe – 10 percent or less
• Latin America – over 50 percent in Brazil, Mexico,
Colombia, Peru, and Venezuela
• Central and Eastern Europe, post-Soviet republics – the
most rapid growth after 1989 (a table on changing
enrolments and the share of the private sector - below)
• Table 1: Higher education enrolments in Central and Eastern Europe
(gross rates, percent of 19-24 population). Source: A Decade of Transition: the
MONEE Project, CEE/CES/Baltics, UNICEF Innocenti Research Centre, 2001
1989
1994
1999
Poland
16,0
24,0
42,8
Hungary
12,2
15,8
28,9
Bulgaria
22,0
30,3
34,7
Romania
7,2
13,5
23,4
Estonia
36,1
28,9
45,5
Latvia
20,5
18,3
46,5
Lithuania
27,8
21,2
39,2
Belarus
22,9
21,9
30,0
Russia
24,8
21,6
31,4
Ukraine
22,3
20,3
29,7
Georgia
19,1
28,6
29,0
Table 2: Private higher education enrolments as the share
of the total enrolments in Central and Eastern Europe
1999
2000
2001
2002
Albania
0,0
0,0
0,0
0,2
Belarus
14,9
13,0
14,0
17,3
Bulgaria
11,5
11,5
12,6
13,4
Croatia
1,4
1,4
2,3
2,7
Czech R.
0,3
1,0
1,5
3,2
Estonia
25,2
25,2
22,0
20,3
Hungary
14,1
14,3
14,0
14,2
Latvia
12,7
12,7
18,8
22,9
Table 2: Private higher education enrolments as the share
of the total enrolments in Central and Eastern Europe
(source: UNESCO-CEPES website)
1999
2000
2001
2002
1,4
...
2,4
4,5
Macedonia 0,0
2,3
0,0
3,5
Moldova
13,1
22,6
25,0
20,0
Poland
28,4
29,9
29,4
29,4
Romania
29,6
28,9
25,2
23,3
Russia
7,0
10,0
14,5
12,1
Slovak R.
...
0,7
0,7
0,4
Lithuania
Introduction (4)
• The private sector as the educational phenomenon
of (selected) transition countries
• The conceptual framework of entrepreneurialism
today restricted to public institutions
• Concepts derived from analytical work on the
public sector (especially Anglophone):
entrepreneurial, proactive, self-reliant,
enterprising, adaptive (Clark, Shattock, Williams,
Sporn)
Introduction (5)
• Fundamental reliance on tuition fees (70 – 100
percent)
• Interviews: to survive, survival
• Do PHE institutions view themselves as
entrepreneurial?
• Small in size, often new, vocationally-oriented
• Minimal research ambitions (and opportunities)
• Mostly teaching institutions
Clarks’ Five Elements of an
Entrepreneurial University
An irreducible minimum of:
A strengthened steering core
An expanded development periphery
A diversified funding base
The stimulated academic heartland
The integrated entrepreneurial culture (1988)
In more detail – only 3, the fundig base (plus
conclusions about 1-5)
The Diversified Funding Base
• Three streams of income
– Mainline support from government
– Funds from governmental research councils
– All other sources – lumped together as „third
stream income”, of greatest interest to us
– Research money = state money = beyond reach
of PHEIs
– „It is bestter to have more money than less”
(Clark)
The Diversified Funding Base
• Non-core sources often feed and encourage one
another
• Third source of income
–
–
–
–
–
–
–
Other governmental sources
Private organized sources
University-generated income
All academic units involved in entrepreneurialims?
Rewarding and punishing
Underpricing and undercharging for services – not PHE
Shattock’s principles of income generation
The Diversified Funding Base
• Key principles of income generation (adapted from Shattock):
● A university’s business is to be academically successful, not to run a
successful business.
● The test is whether the university can generate a surplus or “profit” on
the income, either a monetary profit or some real and tangible
academic gain.
● The non-state income must contain a surplus element for reinvestement in reinforcing existing academic activities or pump
priming new ones.
● Income streams must be clearly identified and managed as if they are
independent “businesses”.
The Diversified Funding Base
• Income and surpluses, or “profits”, need to be shared between the
center and the departments – there need to be incentives and the
benefits should be shared.
● If`the university outsources its “profitable” activities it will lose a large
element of the surpluses.
● Resources need to be invested to achieve a financial return.
● Charging policies should be an important element of the “business”
strategy (universities have a strong tendency to undercharge).
• ●
Internal privatization – turning heavily subsidized services into
“profit” centers.
• ●
Recognizing the importance of process over unstructured
entrepreneurialism in managing identified income streams.
• ●
Generating income is 90 percent “perspiration” and 10 percent
inspiration: individual academic entrepreneurs are high risk.
• (Adapted from Shattock 2004b: 228-232)
Conclusions
• Clark’s Five Elements of the
Entrepreneurial University and PHEIs
studied