Efficient Qualitative
7.7 Entrepreneurs Service Guarantee Factors
The most important viability factors of UDC are related to service guarantee which ensures the entrepreneurs to stick to the UDC as their career and prospects. If their service guarantee becomes vulnerable and they are in fear of job security, then how can they feel safe in delivering their service? Here are factors chosen by the entrepreneurs towards their service guarantee.
7.7.1 Demand Budget and Transparent Disbursement
Support from both national and local authorities regarding yearly budget is crucial for mainstreaming the entrepreneurs as their career with UDCs. Every year some inputs are become out of work. If there is a system of demand budgeting concerning the fixed cost maintenance, there will be no UDCs out of work. Beside this the transparent disbursement has to be confirmed. In this regard there must be coordination between chairman and entrepreneurs. As most entrepreneurs are poor and unemployed and lack of adequate investment in the UDC, government is supporting them through LGSP yearly budget. But the allocation of the budget is too limited to cover entrepreneurs demand. Moreover in most case this allocation has been misused by the UP chairman and members. So the entrepreneurs demand sufficient allocation with transparent disbursement.
7.7.2 Quality Instrument (Technological sustainability)
The UDC equipment is initially provided by the government assisted by donors and the UP from its Local Government Support Project (LGSP) funded by the central government.
Subsequently, entrepreneurs also have added some equipment along with the expense for day today operating costs. Beside this every year there is portion of LGSP budget to buy UDCs equipment. But in maximum time UP Chairman buy the desired equipment which is not qualitative and sustainable. So the entrepreneurs demand to be associated with the purchase committee in order to buy the qualitative instrument.
7.7.3 Personal Investment and Service Innovation
The UDC is established on public-private partnership in which initially the government has made investments on infrastructure development, equipment purchase, training of the entrepreneurs, mass mobilization etc. But the expectation is that the input and infrastructure would be owned by UP and operated by the private entrepreneurs.
According to the contract, entrepreneurs are required to maintain day to day operating cost as well as make investment for expansion and innovation of the business. The UDC is established on public-private partnership in which the government has made investments on infrastructure development, equipment purchase, training of the entrepreneurs, mass mobilization etc. But the expectation is that the project would be owned and operated the local community and the private entrepreneurs in the long run. Contrary to this expectation, the amount of investment from the private sector in the UDC is very low. 13
entrepreneurs have invested more than 20,000 Taka, 21 entrepreneurs invested 10000- 20000 22 entrepreneurs invested 5000-10000 and other 80 entrepreneurs have no or limited investment. Moreover government is supporting them through LGSP yearly budget. So the expectation is that they would be able run the business with new investment and innovation.
7.7.4 Job Agreement under PPP and its Renewability
Under public-private partnership entrepreneurs are appointed through a contract with UP authority, which entitled them a short term (3 years) guarantee for their job. This tenure is renewable subject to the mutual satisfaction of both parties. Only 57% entrepreneurs could enforce the contract with the UP, which is usually reluctant to do so. In most cases, Chairmen are asked to report to the authority making the decisions on entrepreneurs’
appointment. Here, it is found that about 61% of entrepreneurs of UDCs of Rangpur Districts are appointed by UP chairmen. This is followed by 27% by UNO and the rest UDCs’ appointment decisions made by UP Committee. Another important component of entrepreneurship under public-private partnership is the execution of the contract with the UP which is a legal document that gives the entrepreneur a short term guarantee of his/her job for 3 years. This tenure is renewable subject to the mutual satisfaction of both parties (LGD, 2010). Only 57%entrepreneurs could enforce the contract with the UP, which is usually reluctant to do so. So these entrepreneurs have to concern on their service guarantee.
7.7.5 Better Monitoring System: (ADC ICT/ADC gen/ DC/A2i)
According to administrative regulations, the continuity and success of UDC has to be monitored and ensured by the district administration. If a strong monitoring system can be ensured by the district authority, entrepreneurs’ challenges regarding infrastructure, budget, job renewability will be aloof. Beside this, the central authority (A2i) has to oversee the activities and challenges of UDC. A Several monitoring cell may be formed against every division. A control room can be open to monitor this overall system.
7.8 Analysis of Service Guarantee Factors
The identified factors from the above discussion have been prioritized by the different group of entrepreneurs with the following scale.
Table 47: Measuring Scale forGuaranteeFactors
Scale Very Essential Essential Somehow Essential Less Essential Not Essential
Score 5 4 3 2 1
If we average the scores of every entrepreneurs’ group against every indicator and make their rank we can identify their level of significance as shown in the following table.
Table 48: Service Guarantee Requirements (EntrepreneursPerspective)
Groups
Service sources
Gender Marit al Status
Education ICT education / Training
Experienc e
Male Female Married Unmarried HSC or bellow Graduate (Hon/degree) Post Graduate (Masters) No Training less than 1year 1year – 2 year 2 year 0r more less than 1year 1year – 2 year 2 year 0r more
Transparent disbursement of
budget 5.00 4.80 5.00 4.80 4.80 4.90 5.00 4.70 4.90 5.00 5.00 4.70 5.00 5.00 Technological Sustainability
4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7
Personal investment and Service
Innovation 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 4.80 Job Agreement and its
renewability 5 5 5 5 5 5 5 5 5 5 5 5 5 5
Better Monitoring System:
(ADC ICT/ADC gen/ DC/A2i) 4.90 2.90 4.95 2.85 2.90 3.90 4.90 2.95 2.85 4.85 4.95 2.90 3.90 4.90
If we summarize the above table with the average score against every factors, we can find the following table.
Table 49:Mean and Rank ofEntrepreneursService GuaranteeFactors
Required Factors Factors Rank Mean
Service Guarantee:
Entrepreneurs’
perspective
56 Demand budgeting and transparent disbursement 2 4.90
57 Technological Sustainability 3 4.80
58 Personal investment and Service Innovation 5 3.65 59 Terms of job Agreement and its renewability /
permanency
1 5.00
60 Better Monitoring System: (ADC ICT/ADC gen/
DC/A2i)
4 4.70
According to the above analysis, among the entrepreneurs’ demands, job renewability or permanency is the urgent demand. It is the high scored and demand from all. Because in some days there will be new Chairman in all UPs. They may change the current entrepreneurs with new ones from their choices. They also have strong claim for demand budgeting with transparent disbursement. They see that most of the time their demand is not included in LGSP budget. If included it is not spend transparently. They get low quality instrument with low cost because of authority’s corruption. This becomes technologically unsustainable and creates various problems regarding service delivery. So they demand to participate in budget expenditure committee regarding their part. This also needs better monitoring System through ADC (ICT), ADC (gen) DC and A2i).