This paper examines the potential and actual contributions to regional development and growth that UK higher education institutions can make through their "third mission" activities. The authors adopt a case study approach and qualitative methods to analyze the details of academic activities, especially those related to business sectors and the welfare of local communities. Their data and analysis show that university-wide academic enterprise activities are not systematically organized or coordinated. The very concept of "academic enterprise" has not been well received by the majority of academic staff. The findings have two major policy and managerial implications. First, there needs to be a reduction in the reliance on income from the Higher Education Funding Council for England (HEFCE) in response to the progressive decrease in unit funding. Second, universities need to enhance employer-led curriculum development both through the creation of new businesses and by improving university-business links. (Contains 4 tables. Current academic enterprise activities at NEWUNI is appended.)