Introduction

In the context of growing global concerns about climate change and environmental degradation, countries around the world are striving to find a balance between economic growth and environmental sustainability. Bangladesh, a nation highly vulnerable to the impacts of climate change, faces significant challenges in managing the environmental consequences of rapid industrial and microenterprise growth. The country’s microenterprise sector plays a crucial role in its economy, contributing significantly to employment and GDP. However, the sector’s expansion often comes at the cost of environmental degradation, inefficient resource use, and increased vulnerability to climate shocks. This global and national context underscores the urgent need for projects that foster sustainable, climate-resilient growth in Bangladesh’s microenterprise sector.

The Sustainable Microenterprise and Resilient Transformation (SMART) project is a key initiative aimed at driving resource-efficient and climate-resilient green growth in the microenterprise (ME) sector of Bangladesh. Launched with a significant financial contribution from the World Bank and additional support from the Palli Karma-Sahayak Foundation (PKSF), this project seeks to address the environmental challenges posed by the rapid expansion of microenterprises.

The SMART project focuses on promoting Resource-Efficient and Cleaner Production (RECP) practices among MEs, aiming to improve environmental sustainability, enhance productivity, and build climate resilience. SMART project comprises three major components: enabling capacity and systems for green growth, providing access to finance, and improving project management and knowledge dissemination.

The project focuses on providing support to microenterprises operating in agribusiness, manufacturing, and service sectors, with a specific emphasis on environmentally stressed areas susceptible to climate change and natural disasters. Additionally, the project aims to encourage development of environment-friendly businesses and the adoption of operational safety standards within microenterprises. The SMART project places significant emphasis on the need for capacity building, technology adoption, knowledge sharing, and behavioral change among microenterprises. This multifaceted approach ensures the promotion of green growth solutions that are both sustainable and beneficial the environment.

By integrating green growth approaches, enhancing capacity-building initiatives, and facilitating access to finance, SMART seeks to create a robust and sustainable ME sector in Bangladesh, supporting the country’s long-term development goals while addressing climate vulnerabilities.