The revenue diversification of top-tier higher education institutions
Vol. 18, No 4, 2025
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Eszter Lukács
Széchenyi István University, Hungary lukacs.eszter@sze.hu ORCID 0000-0001-6066-6881 |
The revenue diversification of top-tier higher education institutions |
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Bálint Filep
Széchenyi István University, Hungary filep.balint@sze.hu ORCID 0000-0003-3955-6818 Zsolt Kohus
Széchenyi István University, Hungary kohus.zsolt@sze.hu ORCID 0000-0002-2153-615X Sarolta Szabó
Széchenyi István University, Hungary szabo.sarolta@sze.hu
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Abstract. This study examines the revenue diversification of the Top 30 higher education institutions (HEIs) as identified in the 2025 Times Higher Education and QS World University Rankings. Faced with declining government appropriations, HEIs are strategically diversifying revenue streams. Our analysis of financial reports reveals substantial variability in revenue sources, with some institutions primarily relying on research grants, tuition, and government funding. In contrast, others prioritize income from endowments, services, or medical activities. While funding optimization strategies may prioritize single revenue sources for short-term convenience, our findings suggest they risk institutional fragility, highlighting the need for sustainable financial models that balance research productivity, teaching quality, and public service over the long term. This article emphasizes the vital importance of financial autonomy, which enables institutions to invest strategically in recruiting top academic and research staff, upgrading research infrastructure, and enhancing an institution’s overall performance. While strategic autonomy empowers institutions to achieve excellence and adapt flexibly to evolving societal needs, they must remain true to their core mission of public service as they diversify and optimize revenue sources. |
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Received: March, 2025 1st Revision: August, 2025 Accepted: November, 2025 |
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DOI: 10.14254/2071-8330.2025/18-4/5
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JEL Classification: I20, I23, I28 |
Keywords: revenue diversification, higher education, income, financial autonomy, university rankings, sustainable funding models |
