16 Information Management and Business Review Vol. 1, No. 1, pp. 16-27, Nov 2010. The State of Private Universities in Bangladesh: An Evaluation of Students Perception *SSM Sadrul Huda 1 , Ahmed Taneem Mujaffar 2 , Afsana Akhtar 3 , Jashim Uddin Ahmed 4 1,2 Assistant Professor, East West University, Dhaka, Bangladesh, 3 Assistant Professor, BRAC University, Dhaka, Bangladesh, 3 Associate Professor, North South University, Dhaka, Bangladesh *sadrul@ewubd.edu Abstract: The universal characteristics of private universities are explored using a sample of 210 students from private universities to identify their perception. Both theoretical and empirical measurement issues have been considered using structural equations as the primary data analysis approach by using a structured questionnaire. The specific objectives of the research are to, inter alia, measure of the satisfaction level of students in case of academic issues, support services and general issues, which will lead to identify their attitude towards private universities in Bangladesh. Moreover, the study would also try to identify the effective extra curricular activity, and the most satisfied physical environment according to them. From the survey, it is observed that the students are satisfied with the services provided by the private universities. Though some of them are not satisfied with the services but they do not have any other options because every year huge number of students passed from the higher secondary class and the public universities do not have the capacity to cater the needs of most of the students want to have a university graduation. Therefore, they know the position of the private universities but they do not want to come out with the fact, as they have no other choices. However, private universities should try to improve their current standing through maintaining and retaining credibility and viability, maintaining the highest student quality, designing a broad based liberal arts curriculum and emphasizing on research and scholarly activities. Overall they should have strategic plan to ensure the quality of education. Key Words: Policy Private University, Students’ Perception, Educational Credibility, Quality. 1. Introduction The education system of a country functions as an agent of social change and as a force directed towards implementing the ideals of its society. In this process it teaches the value of democracy and how to make the society more democratic. Schools, colleges, and universities are organized to deliver education to different groups of learners at different levels, universities are meant for organizing and delivering higher education. The traditional function of higher education is to train up future leaders of society and to develop high-level manpower for professional, technical, and administrative functions. Now the function of higher education is defined in a new way it is aimed to produce new knowledge, and serve as agents for transfer, adaptation, and dissemination of knowledge generated in other similar institutions of the world. Higher education is imparted in universities, degree, and post- graduate colleges in Bangladesh. Traditionally public sector universities manage the arena of higher