Sustainability, Profitability and Challenges Encountered in Income Generating Projects of University of Rizal System

In today’s educational landscape, financial constraints are common among institutions. However, income-generating projects (IGPs) offer a sustainable solution, as noted by Boqueo (2023), providing both financial stability and valuable learning experiences for students. State universities and colleges (SUCs) particularly see IGPs as a vital income source, reflecting a shift towards collaborative funding efforts between the government and development partners (Adan & Keiyoro, 2019).Insights from Adora and Ultra (2022) highlight IGPs’ effectiveness in securing additional resources for schools, supporting various programs and bridging funding gaps. Embracing IGPs, as emphasized by Battad (2019), offers solutions to various challenges by integrating research, instruction, and extension while fostering job creation and supplementing school budgets.

In this context, this study was conceived to determine the level of profitability, level of sustainability, and challenges encountered in income generating projects of University of Rizal System. The study utilized descriptive-correlational research design. Copeland (2022) stated that the aim of descriptive research is to describe a phenomenon and its characteristics. Correlational research refers to a non-experimental research method which studies the relationship between two variables with the help of statistical analysis. In particular, this study described level of sustainability, level of profitability and challenges encountered in income generating projects of University of Rizal System.

The respondents of the study composed of the 130 admin and finance officials  of University of Rizal System . The actual sample of 98 was computed using the Raosoft Calculator and were chosen through the random sampling method (Rahi, 2017) with a confidence level of 95% and 5% a margin of error. A stratified sampling technique was in the study.

The findings revealed that the overall weighted mean of 3.37 indicates that there was a “Very High” level of sustainability in income generating projects of University of Rizal System . More so, the overall weighted mean of 3.25 indicates that there was a “Very High’  level of profitability in income generating projects of URS .The University of Rizal System faces several challenges in its Income Generating Projects (IGPs) based on survey responses. Major hurdles includes lack of funding for initial investments, insufficient project execution infrastructure, and resistance to change among faculty and staff, and difficulties aligning projects with academic goals. The level of sustainability significantly correlated with the level of profitability as shown by the Pearson r values of market demand and level of profitability along revenue generation (r=0.832; p=0.000) and financial and cost management (r=0.781; p=0.000) level of sustainability; Community engagement  and level of profitability along revenue generation (r=0.738; p=0.000) and financial and cost management (r=0.731; p=0.000), level of sustainability; Legal laws and regulations  and level of profitability along revenue generation (r=0.622 p= p=0.000)Financial and cost management (r=0.609 p=0.000) level of sustainability environmental and social impact and level of profitability along revenue generation (r=0.635 p=0.000) which were all less than the 0.01 and 0.05 level of significance. A value of 0.000 indicates a high level of prediction of the dependent variable (Level of Profitability). The obtained R square of 0.723 shows the independent variable ( market demand, Community engagement, Legal laws and regulations, Environmental and social impact)explain the variability of the dependent variable (level of profitability). Further, the ANOVA shows that the independent variable (level of Sustainability) being statistically significantly predicted the dependent variable Level of Profitability with an F-value of 47.922 and a probability value of 0.000which is less than the 0.05 significance level.

In conclusion, the Income Generating Projects (IGPs) at University of Rizal System (URS) achieved a very high level of sustainability. This is a manifestation that the IGPs are not only meeting legal requirements but are also making positive contributions to the environment, society, and community. The high level of profitability in Income Generating Projects (IGPs) of University of Rizal System (URS) signifies outstanding performance in terms of revenue generation and financial management. The Income Generating Projects (IGPs) at University of Rizal System (URS) reveals a comprehensive understanding of the challenges faced in their implementation. The predominant challenges include a lack of funding for initial investments, insufficient project execution infrastructure, and resistance to change among faculty and staff. The higher the level of sustainability along with market demand, community engagement, legal laws and regulations and environmental and social impact, the higher the level of profitability along with the revenue generation and financial and cost management. The independent variable level of sustainability is the driver of level of profitability, hence, the proposed action plan may be implemented to address the challenges encountered in income-generating projects at the University of Rizal System.