Private University Industry in Bangladesh The true growth of an economy depends on the development of a nation and its citizens as human resources and higher education plays an inevitable role. Bangladesh is also not an exception to this. At present there are more than 52 private universities in the country. Therefore, now what matters in this connection is not the number but the quality. A good university must ensure quality education for its students. But to be an international standard institution of higher education it is not an easy job for a university. PEST Analysis on Private University Industry in Bangladesh Political Factors In Bangladesh, a private university does not get any supports, financial or material from the government; even no tax break. On the top of it, its surpluses are subject to 15% income taxes. Private University Act requires the founders to allow at least 6% of the registered students to study at the university without paying tuition if they are meritorious but financially disadvantaged. To reduce the gap between the supply of and demand for higher education the government decided to attract private investment in higher education sector. Eventually government enacted the Private Universities Act to provide a legal framework for the establishment of private universities with the assumption that these universities would supplement the government efforts to meet the demand for higher education. The Private University Act 2010 is an innovative one. Under this Act, a Representative of the Ministry of Education and another from University Grants Commission are designated as members of the Syndicate. As stipulated in the Act, the university grants commission supervises and monitors all the private universities on behalf of the Ministry of Education. The government and UGC have been asking private universities to move to permanent campus.. Beside, by a separate order, the government has circulated a set of detailed instructions to university management requiring the latter to prevent sexual harassment, eve teasing, etc. All these help the private universities, practice good governance. Economic Factors: In recent years Bangladesh is having a stable around 7% growth in its gross national product. Private expenditure on education in recent days has increased. People are willing to expend more for quality education. Inflation rate in Bangladesh is around 6%. Due to this inflation Private University has to increase its different program fees every year by a certain percentage. Disposable income in Bangladesh is growing at an impressive rate. It would translate into increased expenditure in education sector. Number of students that go to foreign countries for higher studies has decreased. This saves a huge amount of foreign exchange. With booming of economy, many multinationals of different sectors and domestic firms are expanding their business which requires more & more top quality graduates which also increase the demand of private university. Social Factors: In 1991 Bangladesh had a literacy rate of 38% which is currently jumped to 72.9%. More and more people are getting into higher level education which also increases the demand of Private University. In Bangladesh soot population is gradually shifting in urban area. Urban people are more interested in quality business education than rural people. Also highest percentage of as total population is at the age range of 20-39. This age group is more likely to pursue a Higher Education Degree which creates a demand for private university. Technological Factors: Bangladesh is going through a change towards digital era. The main focus of the government is to enhance efficiency of the daily process by introducing digital equipment & services. In this scenario way of delivering education system is also changing. Access to information is easier now through internet. Both faculties & students can access required academic resources through interne. The operation system of Private University has been renovated by introducing form fill-up using interne, payment using mobile phone & script checking using OMR machines. So, Private University education system is incorporating technology in almost all the aspects.
