<p>Many expenses for a university run counter to sound business principles. Computers are an excellent example. A business invests in new computer technology to develop economies and to compete. There’s a decision that’s made that the investment will net a positive return – or stave off losses.</p>
<p>Not so for colleges. To prepare students for the “real world” the colleges have to remain on the cutting edge of science and technology, regardless of what the “return” is on their investment in the technology. And, of course, the return is nil – unless you want to point out the attrition and diminished matriculation (lower tuition revenues) that ensues from failing to maintain top tier technology.</p>
<p>So when people insist on colleges being run more like a business, I sort of chuckle (and that’s before I point out that 2/3 of all new businesses fail inside of 5 years, so it’s not like the business world’s approach to survival is some sort of fairy dust). The cost component of running a top college operate more like a Shop Vac, so the idea of trying to develop revenue streams that are equally greedy should come as no surprise.</p>