Are University Businesses Struggling Economically?
Survey Reveals Key Trends
By loycedashingdetails | 25 February 2025
📌 Introduction: A Tough Market for Campus Businesses?
University campuses are more than just places of learning—they’re economic hubs filled with small businesses serving students, faculty, and staff. But are these businesses thriving or barely surviving?
To find out, I surveyed 50 local business operators, including store owners, café managers, and service providers. The results were clear: most businesses are struggling as student spending habits shift. Rising costs, digital payments, and economic pressures are reshaping the way campus businesses operate. Here’s what we uncovered.
📊 60% of Businesses Report a Drop in Sales
The biggest takeaway is that 6 in 10 businesses say their sales have declined over the past year. 60% reported lower revenue, 25% said their income was stable, and only 15% saw growth.
📉 “Foot traffic isn’t the same anymore. Students spend less, and online shopping takes away customers,” said one bookstore owner.
💡 Opinion Insert:"Honestly, this isn’t surprising. Walking around campus, you can see fewer people stopping by these businesses. Between online shopping and rising prices, it makes sense that store owners are feeling the pressure."
So, what’s causing this decline? Business owners pointed to inflation driving up costs (45%), students shopping online instead of in-person (30%), and reduced campus activity due to flexible schedules (25%).
💰 How Much Are Students Spending? Most Stick to less than ₹100–₹500
Also asked business operators about average student spending per visit. The results showed that:
40% of students spend between ₹100–₹500
30% spend more than ₹500
20% spend ₹501–₹1000
and only 10% spend more than ₹1000
This suggests that students are increasingly budget-conscious, prioritizing necessities over luxury spending.
🔎 “We had to add more affordable options to the menu. Combo meals sell better now than premium dishes,” said a café owner.
💡 Opinion Insert:"I can definitely relate to this. With the cost of everything going up, most students (including me) are sticking to a strict budget. Grabbing a quick snack or drink is fine, but splurging on bigger purchases? Not so much."
🛒 The Biggest Challenges Facing Campus Businesses Economically
When asked about their biggest struggles, business operators pointed to high rent costs (50%), rising product prices due to inflation (40%), online competition (35%), and university policies that limit flexibility (25%).
💸 “Rent keeps going up, but our sales don’t. It’s tough to survive,” said a shopkeeper. Many businesses have started cutting costs—whether by reducing staff, limiting inventory, or downsizing operations.
💡 Opinion Insert:"The fact that 50% of business owners struggle with rent is wild. You’d think there would be more efforts to support small businesses on campus, considering how much students rely on them."
💳 Recent Trends In Economy:Digital Payments Are Taking Over!
One positive trend is the rapid adoption of cashless payments. 70% of businesses reported a sharp increase in mobile and card transactions, while only 30% said cash was still dominant.
✔ “UPI is now our main payment method. Hardly anyone carries cash anymore,” said a food stall owner. This means businesses that embrace digital payments will likely perform better in the long run.
📢 What Needs to Change? Business Owners Speak Out
I asked business owners what could help them stay afloat and grow. Their top suggestions: lower rent costs (55%), financial aid or small business loans (40%), more university-led marketing support (35%), and relaxed vendor policies (30%).
💡 Opinion Insert:"Maybe the university could step in with better policies or support. Imagine if they gave student discounts at campus businesses or ran promotions to encourage spending—wouldn’t that be a win-win?"
👥 What about students?
Many businesses said that student loyalty and support could make a big difference.
🔮 What’s Next for Campus Businesses?
The survey shows that campus businesses are in a tough spot. While costs are rising and student spending is shifting, business owners are finding ways to adapt—whether through digital payments, discounts, or new pricing strategies. However, without better institutional support, many businesses may continue to struggle.
For students, these businesses are more than just stores—they’re part of daily campus life. Supporting them doesn’t always mean spending big, but even small choices—like choosing a local café over a delivery app—can make a difference. As spending habits evolve, the question remains: how can we balance affordability while keeping these businesses alive?
"At the end of the day, these businesses are part of student life. If we lose them, we lose the convenience and culture they bring to campus. It’s worth thinking about how we can support them—whether that’s choosing a campus café over a food delivery app or spreading the word about student-friendly businesses."
💬 What do you think?
Are students spending less?
Should the university offer more support? Drop your thoughts in the comments!
📊 Want to participate in the survey?
🔗 https://forms.gle/8Tv9ujw5GJL6aVzX7
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