Microenterprise sector backbone of Bangladesh economy: WB Country Director

World Bank Country Director Mercy Miyang Tembon, has said the Microenterprise sector is the backbone of the economy of Bangladesh and The World Bank is ready to extend its support to make it "green" and more resilient. 

She was speaking at the closing session of the 5-day knowledge-sharing workshop jointly arranged by the World Bank and PKSF jointly organised this workshop from 28 March under the World Bank-financed Sustainable Enterprise Project (SEP), reads a press release. 

SEP helps about 40,000 microenterprises adopt environmentally sustainable practices and occupational health and safety measures in the manufacturing and agribusiness sectors. The project provides loans to microenterprises to adopt innovative, environmentally sustainable technologies and practices. The project facilitated the use of resource‐efficient technologies and set up one-stop shared service facilities for micro-enterprises. It also promotes basic safety standards and aims to certify eco-labelled products.

Tembon also said that the microenterprises of the Sustainable Enterprise Project can take the advantage of certifications, digital financing, and other technologies that are being transferred to them.

"Digitalisation can help organise and innovate various kinds of networks to facilitate access to bigger markets, and those looking for a cleaner, greener supply chain," she added.

To share cutting-edge knowledge, discuss innovative data management and digitalisation, explore financing instruments, and alternatives to enhance policy consistency to better implement environmentally sustainable practices, the virtual knowledge-sharing workshop titled 'Adoption of Environmentally Sustainable Practices and Environmental Certifications by MEs' was kicked off on March 28, 2022. 

PKSF Managing Director Dr Nomita Halder inaugurated the event followed by the opening remarks by PKSF Additional Managing Director Md Fazlul Kader, and World Bank Senior Environment Specialist Eun Joo Allison Yi. 

In her speech, Dr Halder said that environmental concerns had previously been the 'missing piece' in the prevalent development interventions until they were incorporated into the SEP.

"Growth is essential for eradicating poverty and it is time we realized the importance of ensuring environmental conservation and business growth at the same time," she commented.

Mentioning that Bangladesh is the most densely populated country not only in terms of human population but also in terms of livestock, Md Fazlul Kader explained the context and significance of SEP.

"The low-level technology trap is a key obstacle to the sustainable development of microenterprises (MEs)", he said, adding that SEP was working to create an environment conducive to the micro-entrepreneurs and it was applying the Nudge theory to inspire them to adopt environmentally sustainable practices in their ventures.

Researchers, experts, and professionals from different countries around the globe spoke on policies of different countries, big data management, digital financing, innovations, and green financing in different sessions of the workshop. Many ideas and working innovations have also been showcased in the workshop. 

More than 150 participants from different parts of the world took part in the workshop including officials from The World Bank, PKSF, and its partner NGOs. 

PKSF has been working with a view to alleviating poverty sustainably through employment generation since its establishment in 1990. Considering the multidimensional nature of poverty and the changing need of low-income people, PKSF provides capacity building support, technology transfer, value chain development, and other technical services in addition to inclusive financing to help them to get out of the low productivity trap.

Maintaining both growth and environmental sustainability is a unique idea for the microenterprise sector. PKSF is the pioneer to incorporate this idea and is firmly working to achieve this double bottom line through the SEP since 2018.