A rapidly changing environment, marked by decreased government financial support and increased competition within the university sector, means that institutions of higher education in Hong Kong must become more entrepreneurial and customer-focused. This paper proposes a model for managing contemporary universities that examines the relationships between users and suppliers of higher education and emphasizes the need for a new university dynamic that supports substantive change. Following an introduction and a summary of the evolution of higher education in Hong Kong, the paper proposes a taxonomy for managing contemporary universities by integrating undergraduate, graduate, and professional school communities to formulate an institutional mission and direction. The taxonomy presented consists of four quadrants identifying suppliers and users from the educational and business sectors. Next, institutional entrepreneurship for university management is discussed, advocating the adoption of a corporate venturing, or intrapreneurship, model that emphasizes the role of academic staff in capitalizing on market trends, research opportunities, and their own expertise to develop new courses and programs and the fundamental role of senior management to effectively reorient the institution to participate in the lifelong learning paradigm. Finally, policy implications are presented. Contains 20 references. (TGI)