Factors Contributing Towards Operational Sustainability of Union Digital Centres: Evidence from Bangladesh

In this study, the authors look at the most significant factors influencing the sustainability of operations of Union Digital Centres (UDCs), which operate under the system of a public–private partnership (PPP) in Bangladesh. Most UDCs are experiencing premature shutdown because of the weakness of infrastructure and uncertainty in service provision, in spite of their strategic relevance in the digital inclusion process. A cross-sectional survey of 637 entrepreneurs with the help of structural equation modelling reveals such elements as equipment availability, service diversity and entrepreneurial investment to be of paramount importance in influencing sustainability. The results indicate that most occupants have easy access to basic information and communications technology (ICT) tools, with few opportunities for using advanced and pictorial tools, thereby restricting the service delivery. Also, there is a gap in the uniformity of provision of e-government and commercial services. The strongest factor indicating UDC sustainability was an entrepreneurial investment that helps to emphasise the importance of the intervention of the private sector. This article points out that specific improvements in ICT infrastructure, delivery mechanisms and entrepreneurial education are required to support the sustainability of digital hubs in rural Bangladesh in the long run.