The Role of Telecentre in Developing Entrepreneurship: a Case Study on Union Digital Centres in Bangladesh

Abstract

This paper evaluates the role of a telecentre project- the Union Digital Centres (UDC) in Bangladesh- in developing entrepreneurship among rural youths under Public-Private Partnership. Contrary to engaging qualified operators in terms of efficiency and investment the UDC has employed local youths who are small scale investors, home grown and amateur in skill. Many operators earn very low and some run off the project leading to closure of centres. In this context understanding the issue of entrepreneurship attains significance for the sustainability of the model. Entrepreneurship is defined in terms of operator's income, his/her satisfaction on income and the level of investment. The study hypothesizes that factors responsible for entrepreneurship development include ICT and internet, services, clients' turnout, stakeholders' involvement and experience of the operator. Based on an internet survey and interview of operators and a review of literature the study explores features of UDC facilitated entrepreneurship. It describes stakeholders' involvement in ensuring inputs and their roles in promoting entrepreneurship. An application of a structural equation model supports the hypotheses validating that operator's own initiative synergized with support from the government influence the development of entrepreneurship among operators. The results specify that the UDC bears potential to develop entrepreneurship among operators given they use a variety of equipment and better quality internet, provide a range of services to a greater volume of clients, receive stakeholder's support and demonstrate computer and managerial skills. The government's role in implementation, human resource management and monitoring of the project influences the process. The study also finds that the project experiences a range of challenges from inadequate involvement of partners. Since deficiency in any partner's role can affect the mission of entrepreneurship development, the author suggests that the government must take the lead role in engaging relevant partners to convert the UDC as an enterprise.