Public universities undertake business activities sometimes considered by private enterprise as unfairly competitive based on nonprofit advantages. This study was an inquiry into the attitudes and actions of chief business officers at public universities regarding these activities. The research population consisted of the 1862 Morrill Act Land Grant institutions located in the continental U.S., excluding the District of Columbia. An explanatory mixed-method study design was used. A purposeful sample was selected for interviews that provided good geographic and demographic representation including all regions of the U.S., communities of different sizes based on Metropolitan Statistical Area population, and institutions of different sizes based on enrollment.

Most business officers did not admit to having received allegations of unfair competition in the survey, whereas the majority revealed in interviews that they had. Most commonly receiving complaints were bookstores, fitness centers, and food service operations, and to a lesser extent, housing, real estate development, and hotels. Criticism varied geographically per the surveys. All interview respondents indicated concern about future complaints and the risks such complaints might pose to political relations and institutional budgets. Geographic location and community size were found to influence the likelihood of complaints, but institution size was not.

Most universities do not anticipate undertaking new activities that may be considered unfairly competitive. The most cited reasons for undertaking new activities were to improve campus facilities, generate new revenues, or offer services not otherwise available. Offering student training opportunities was a less frequently cited reason. Most survey respondents indicated that challenges of unfair competition had not negatively affected their campuses. Interviews revealed more changes occurred than reported. Concerns about future complaints were revealed in all interviews.