The business models employed by U.S. colleges & universities

This chapter is intended for practitioners and scholars seeking to learn more about organizational finances. A hallmark of the U.S. higher education system is its heterogeneity. From research universities to community colleges, each institution seeks to excel in serving its respective mission. To do so, the institution must have a viable business model that ensures it generates sufficient revenue to offset expenditures. This article describes the business models currently used by different sectors of higher education, emerging threats to those business models, and the potential strategies that can be employed in response to those threats.