ENTREPRENEURIAL ACTIVITIES IN THE BRAZILIAN FEDERAL UNIVERSITIES: A CASE STUDY OF THE FEDERAL UNIVERSITY OF CEARA

Abstract

One of the most debated topics within public universities in Brazil is the development of alternative resources generated from entrepreneurial activities in order to supplement the lack of government funding for higher education. This study analyzes this issue, addresses questions about the creation of private institutions that provide fiscal support to federal universities, and discusses the relationship between federal universities and these private organizations. In particular, the research for this project is based on a case study of the Federal University of Ceara (UFC) and the eight private foundations that function within its structure and are sources of additional revenue for the institution. This study draws on resource dependency theory, academic capitalism theory, and globalization theory as its theoretical framework. Resource dependency theory is used to clarify why federal universities in Brazil have turned to private institutions within their structures in order to generate external revenue. Academic capitalism theory provides an understanding as to why universities are shifting their focus and functions towards a new market orientation. Globalization theory is used to explain how emerging international markets and concepts are affecting the new environment in public institutions in Brazil. The present research is based on UFC's experience with the eight private organizations which exist to provide support to their respective departments and to the university as a whole. The data collected is based on institutional documents such as statutes, contracts, and financial statements. Interviews were the other source of data gathering. The results indicate that private institutions (foundations and faculty associations) contribute significantly to the activities of their federal universities by generating additional, external revenue. At the same time, this national phenomenon is the subject of a heated debate centering on the question of whether public higher education in Brazil is essentially becoming privatized. The research also confirms that foundations are contributing to a shift in public higher education toward the new market orientation.