ABSTRACT
This chapter explores the financial drivers of business schools on both the income and expenditure sides of the equation and highlight areas of distinct concern for business school finances. Once government funding has decreased, business schools turn to two more sources of funding: executive education and fund raising. In recent debates about higher education, one subject that has received only limited attention must surely be the model through which business schools and universities manage their main asset: their faculty. In research-intensive universities as well as in many research-focused business schools, faculty members career paths are dependent on their research productivity measured in the quality of research journals, the number of high-quality publications. But in most cases, research is cross-subsidised from teaching income. The consequent strategic options, including part-time and on-line education, should encourage Deans and Directors of business schools to reflect genuinely on the long-term financial viability of their business models and focus on refreshing such models in the future.
