This digest reviews the literature examining ways in which the academic world is shifting toward more entrepreneurial approaches for running an institution and examines some programs that have been developed both at the community college and the senior college level. Reasons cited for the shift toward entrepreneurial ways of operating include cuts in traditional sources of funding, government intervention in higher education, and the escalating costs of teaching and research. Also noted are some of the risks posed for colleges and universities when participating in entrepreneurial activities, including business risk, management risk, and image risks. The paper notes that community colleges, because of their traditional role in job training, have been successful in obtaining money from both government and industry to prepare workers for jobs. In contrast, universities and four-year colleges have tended to focus on generating revenue through research collaborations with private industry and the government, such as partnerships with licensing and patenting offices, small business development centers, research and technology centers, and business incubators. The paper concludes that entrepreneurial ventures performed in keeping with academic values can be worthwhile for institutions, students, and the public. (Contains 14 references.) (JM)