Hello there,
In this thread, I delve into the world of partnerships in higher education as a financial resource! Let's get into it!
Several Higher Education Institutions (HEIs) often experience financial pressure and cost burdens. Simultaneously, many governing bodies and states have cut funding for HEIs. In fact, as far back as 2001, over 20 states in the US reduced funding for institutions of higher education due to factors such as economic recessions (Meyer, 2010). In light of this, some institutions had to rely on other financial sources for funding. This has resulted in a gradual shift towards reliance on non-governmental sources. Currently, there are countless HEIs that engage in and are quite open to private sector partnerships.
This non-governmental source is often referred to as public-private partnerships. Essentially, it is “a contract between a public agency or nonprofit and a private sector entity, in which they can share skills, technology and responsibility when delivering a product or service” (Lundy & Ladd, 2021). Some private companies provide funding to cash-strapped institutions while others provide services outsourced by the university like food services and security services. Overall, such partnerships in higher education have been found to be beneficial as it gives institutions the opportunity to reduce costs, share risks, access and enhance technological systems, increase budget capacity, and outsource assets. As such, this is a great strategy that HEIs can explore, pursue, and employ to experience the aforementioned financial benefits.
What are your thoughts on private partnerships in higher education? Is it a source of funding that you would recommend to an institution? Why or why not? As always, I anticipate your feedback!
Krista
MDE student
University of Maryland Global Campus
University of Maryland Global Campus | UMGC
References
Meyer, K.A. (2010). If higher education is a right, and distance education is the answer, then who will pay? Online Learning, 14(1).
Lundy, K., & Ladd, H. (2021). How the right public-private partnerships in higher education provide value. EY Parthenon. How the right public-private partnerships in higher education provide value | EY - Global