Abstract
The financial problems of colleges under 1,000 in enrollment cannot be blamed entirely on a set of minimum, or “fixed,” costs that colleges of any size must bear. Enrollment fluctuations and lower tuitions also contribute to financial difficulties. In the past, colleges have used growth not so much to capitalize on economies of scale as to provide evidence of success to their constituents. As a result, the ranks of small colleges remain populated with those institutions experiencing financial difficulty, while more successful institutions have attained a larger size. However, in an era of limited growth potential, small colleges must not look to growth as a symbol of success. Success will be better equated with the continuation of quality academic programs in a closely knit community.
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Dickmeyer, N. Small independent colleges and economies of scale. Res High Educ 17, 51–67 (1982). https://doi.org/10.1007/BF00973663
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DOI: https://doi.org/10.1007/BF00973663