Stories
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.
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.
