Effect of Internally Generated Income and Government Subvention on the Financial Sustainability in State Universities in Cameroon

Abstract

This paper investigates the effects of Internally Generated Income (IGI) and government subsidies on the financial sustainability of state universities in Cameroon. The study adopted a mixed research design. The study employed a quantitative research design, utilizing survey data collected through a structured questionnaire. The target population comprised representatives of schools and faculties in state universities. A random sampling technique was adopted to ensure that every school or faculty had an equal chance of being selected, thereby enhancing the representativeness of the sample. The sample size was conveniently determined based on the number of institutions to ensure statistical reliability and validity. The collected data was analyzed using both descriptive and inferential statistics.

Findings from ordinary least squares revealed a significant role of government subvention in promoting the university's financial sustainability, as evidenced by the positive significant relationship and government funding in this model. Conversely, Internally Generated Income (IGI) showed a statistically insignificant and negative relationship with financial sustainability. From a policy perspective, given the significant impact of government subsidies on financial sustainability, the university should prioritize advocacy efforts to secure stable and predictable government funding. The insignificant role of IGI in the current model suggested the need for a reassessment of income-generating activities. Universities should diversify their IGI sources by exploring innovative revenue streams such as short-term certificate programs, research commercialization, partnerships with industry, and leasing university assets.