Financial Resource Mobilisation Strategies And Financial Sustainability: Empirical Evidence From Private Universities In Uganda

Abstract

Purpose: The study set out to examine the association between financial resource mobilisation strategies and the financial sustainability of private universities in Uganda. Methodology: The study was anchored on a positivist paradigm, adopting cross-sectional and correlational designs. Thirty-two private universities (determined using Yamane’s formula)  were purposively selected from a population of 39 private universities licensed by the National Council for Higher Education (NCHE). Data was collected using a structured self-administered questionnaire from the Vice-Chancellor, Registrar finance/bursar, and Academic Registrar, who formed the unit of inquiry per private university. Pearson correlation and standard regression were used as the primary data analysis techniques. Findings: The study established that financial resource mobilisation strategies are positively associated with financial sustainability, predicting 32% of the variation in the financial sustainability of private universities in Uganda. Unique contribution to theory, practice and policy: The findings highlight the critical prerequisite for private universities to triangulate their resource mobilisation methods by utilising internal and external finance sources to survive financial difficulties. Findings have affirmed the assumptions of the modern portfolio theory, suggesting that private universities should ensure an optimal portfolio of financing strategies that will minimise the risk of financial distress while increasing returns, rather than only focusing on internal sources, especially tuition fees.