Author: Alal Ahmed, Program Manager (Communication and Knowledge Management)
Home Alal Ahmed, Program Manager (Communication and Knowledge Management) Page 2
News & Events
November 3, 2024

SMART project to drive sustainable transformation in microenterprise sector

A recent situational analysis has revealed critical insights into the state of Bangladesh’s microenterprise sector as PKSF launches its Sustainable Microenterprise and Resilient Transformation (SMART) Project. The study, conducted by Development Technical Consultants Pvt. Limited (DTCL), surveyed 5,457 microenterprises across nine sectors in 41 districts during the second quarter of this year, emphasizing the urgent need for climate-resilient practices while showcasing the socio-economic potential of these small businesses.

The analysis uncovered significant environmental challenges within the sector, with only 13% of the surveyed microenterprises being familiar with Resource-Efficient and Cleaner Production (RECP) practices. Of these, a mere 2.84% have implemented any RECP measures, highlighting a substantial gap in the sector’s sustainability efforts. Awareness of RECP was notably higher in the horticulture sector (31.77%) but alarmingly low in food processing, where none of the surveyed businesses had any knowledge of these practices.

The findings were presented by DTCL during a session on 1 September 2024. Md Mashiar Rahman, Deputy Managing Director of PKSF, presided over the event. Gokul Chandra Biswas, Project Coordinator of the SMART project, delivered the welcome speech. The session was also attended by key dignitaries from PKSF and DTCL, including Dr Shaker Ahmed, Team Leader of the study; Dr Tapas Kumar Biswas, statistician; and Dr M M Amir Hossain, Managing Director of DTCL.

The study’s objectives included assessing the current socio-economic conditions of microenterprises, identifying strengths, weaknesses, opportunities, and threats within selected sub-sectors, examining environmental conditions, and mapping potential clusters and key actors within the value chains. Methodologically, the study employed both quantitative and qualitative approaches, incorporating a questionnaire survey, focus group discussions (FGDs), key informant interviews (KIIs), case studies, and physical observations.

The survey also highlighted the sector’s significant impact on employment, with an average of 5.91 jobs generated per enterprise, split between self and wage employment. However, challenges persist, with 26.7% of microenterprises citing high raw material costs as a major barrier to accessing fair market prices.

Since August 2023, PKSF has been implementing the SMART project to address these challenges, aiming to support microenterprises in adopting sustainable practices, improving resource efficiency, and mitigating environmental damage. The insights gained from this situational analysis are expected to play a pivotal role in shaping the project’s strategies, fostering sustainable growth and resilience in Bangladesh’s microenterprise sector amidst growing climate-related risks.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
News & Events
November 3, 2024

PKSF Meets World Bank: Discusses Progress on SMART Project

A bilateral meeting on the progress of the SMART project was held on 14 November 2023 at PKSF Bhaban. Additional Managing Director of PKSF Md Fazlul Kader chaired the meeting attended by, among others, the World Bank’s South Asia Practice Manager Christophe Crepin and Senior Financial Economist Gabi G Afram.

Provat Kumar Saha, an Associate Professor of Bangladesh University of Engineering and Technology (BUET) and a representative of the consulting group appointed by the World Bank to verify the RECP technologies to be applied through the SMART project, gave a presentation on the Resource-Efficient and Cleaner Production (RECP) technologies suitable for the project’s interventions.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
Extreme Poverty Reduction
News & Events
November 3, 2024

World Bank Praises Progress of SMART Project in Bangladesh

The World Bank has conducted two Implementation Support Missions (ISMs) so far to evaluate the progress of the SMART project in Bangladesh, with the latest mission having taken place from 11-18 February 2024.

The first mission, conducted from 24-26 June 2023, rated the project’s progress as ‘satisfactory.’ The subsequent mission included in-depth discussions with officials on various components of the project, such as procurement, environmental and social frameworks (ESF), grievance redress mechanisms (GRM), financial management, communication, monitoring, and evaluation.

During the second mission, the World Bank team held discussion with Partner Organizations of PKSF to refine strategies for Resource Efficient and Cleaner Production (RECP). A tripartite meeting with the Department of Environment (DoE) and Bangladesh Standards and Testing Institution (BSTI) was held to help get the necessary clearance for microenterprises (MEs) supported by the project.

The missions underscore the project’s commitment in promoting sustainable development and environmental conservation in the microenterprise sector of Bangladesh.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
News & Events
November 3, 2024

World Bank Appoints Experts to Assess RECP Technologies for SMART Project

A team of four experts specializing in Air Quality Management, Energy Efficiency, Water Management, and Waste Management has been appointed by the World Bank to evaluate suitable Resource Efficient and Cleaner Production (RECP) technologies for the SMART project. This diverse team, consisting of both local and international specialists, conducted field visits from 1-6 June and 6-7 September 2023, to observe the Sustainable Enterprise Project (SEP) activities firsthand.

Following their comprehensive field assessments, the experts held a knowledge-sharing meeting on 10 September 2023, with representatives from the World Bank, PKSF, and SEP-implementing Partner Organizations. The meeting, attended by representatives of 20 Partner Organizations, focused on the findings and recommendations of the assessment.

The expert team also submitted a detailed assessment report, which will serve as a crucial guiding document for identifying potential RECP technologies for Microenterprises (MEs) supported by the SMART project.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)
Stories
November 3, 2024

How Shared Facilities Act as Catalyst for Sustainable Growth in Microenterprises

In the dynamic landscape of Bangladesh’s economy, microenterprises play a crucial role. Despite their potential, these small-scale enterprises often face significant barriers in accessing advanced technologies and sustainable practices. Shared facilities in Common Service centers, however, present an innovative solution to this challenge, enabling effective transfer of appropriate technologies and fostering sustainable development.

Addressing technology-access barriers

One of the primary obstacles microenterprises encounter is the lack of access to modern machineries and advanced technologies due to financial constraints. Shared facilities alleviate this issue by providing common access to high-cost equipment and technologies that individual micro-entrepreneurs might not afford independently. For instance, in the Bhairab shoe manufacturing cluster, a Footwear Common Service Center established under the Sustainable Enterprise Project (SEP) helped MEs to access high-cost technologies like Shoe Master software, Laser Cutting, Beam Cutting, Pearl Setting machines. Additionally, recycling units established under the under the Common Service facility enabled local businesses to recycle about 700 tonnes of footwear waste annually, transforming waste management practices and promoting sustainability.

Enhancing technical capacities and overcoming knowledge barriers

Shared facilities do more than just providing access to equipment; they serve as hubs for technical training and capacity building. By offering training on Resource-Efficient and Cleaner Production (RECP) practices, these facilities help micro-entrepreneurs adopt environment-friendly methods. In Bhairab, training programs conducted in the Footwear Common Service Center of POPI has educated workers on modern technologies and health hazards associated with their activities and the importance of using protective equipment, significantly improving workplace safety and productivity. It also provides centralized access to market information, networking opportunities, and ongoing support, bridging gaps between market accessibility and knowledge. The regular meetings and workshops held at these facilities ensure that micro-entrepreneurs stay updated on market trends, technological advancements, and best practices, empowering them to make informed decisions and enhance their competitive edge.

The footwear common service center provides state of the art technology support for the microenterprises of Bhairab
Micro-entrepreneurs can have computerized and customed design from the common service center at an affordable cost

Fostering innovation and collaboration

Shared facilities encourage collaboration among micro-entrepreneurs, leading to the exchange of ideas and fostering innovation. When multiple businesses operate within the same space, they can share experiences, solve problems collectively, and develop innovative solutions tailored to their specific needs. This collaborative environment is essential for the continuous improvement of products and processes, driving the overall growth of the microenterprise sector.

Economies of scale and market access

By centralizing resources, shared facilities help microenterprises achieve economies of scale. This collective approach reduces the per-unit cost of production and increases efficiency, making it easier for small businesses to compete in larger markets. Additionally, shared facilities can help micro-entrepreneurs obtain necessary certifications and meet quality standards required by formal buyers, thereby expanding their market reach both nationally and internationally.

Environmental and economic sustainability

The adoption of shared facilities also aligns with the principles of a circular economy, promoting both environmental and economic sustainability. For example, recycling units in Bhairab not only manage waste efficiently but also create new revenue streams through the production of recycled products. This dual benefit of environmental conservation and economic gain underscores the importance of shared facilities in fostering sustainable development.

Shared facilities play a pivotal role in transferring appropriate technologies among microenterprises in Bangladesh. By providing access to advanced machinery, fostering technical skills, encouraging collaboration, and supporting sustainable practices, these facilities enable small businesses to overcome significant barriers and thrive in a competitive market. The success seen in clusters like Bhairab’s shoe-manufacturing sector illustrates the transformative potential of shared facilities, highlighting their importance in driving sustainable economic growth and environmental stewardship. As Bangladesh continues to develop its microenterprise sector, expanding and enhancing shared facilities will be crucial to ensuring long-term sustainability and prosperity.

By Alal Ahmed, Program Manager (Communication and Knowledge Management)