What problem or need is the project addressing?
Bangladesh is one of the world’s poorest countries. About 40% of Bangladesh’s 147 million people live in abject poverty. Despite seeing a significant reduction in poverty levels over recent years, challenges (such as climate change and the economic crisis) have reversed the trend and increasing numbers of people falling back into poverty. Poverty reduction is therefore a top priority.
Northern Bangladesh, where SLIPP is working, is one of the poorest parts of Bangladesh. People living here often depend on work which is seasonal, poorly paid and exploitative. As a result, they remain trapped in poverty and become increasingly marginalised. Small businesses have the potential to provide opportunities for work and reduce poverty. Unfortunately though, these businesses face numerous challenges and struggle to become economically viable. The majority receive no business support, so their problems persist, they fail to become viable, and their employees remain poor and marginalised
What is the project doing?
The project is training over 250 local organisations and individuals to provide vital services and support to 2000 small producer businesses. Improving the business performance of these small businesses is in turn increasing employment and income generating opportunities for poor producers. Each small business provides employment to at least 3 poor producers. This means the project will work with at least 6,000 producers and with an average family size of 5, it will directly benefit at least 30,000 people.
The project is also encouraging small businesses and poor producers to work collectively and collaboratively. By working collectively, small businesses can share the costs of buying business inputs and accessing markets, and negotiate more effectively with potential buyers. The project is also supporting poor producers to influence local, national and international policies and practices which have a direct and often negative impact upon their livelihoods. It is empowering them to demand their rights to, for example, a fair price, a fair wage, decent living and working conditions, access to healthcare and other essential social services.
We carried out research to identify which sectors we should concentrate on for maximum impact. Vegetable cultivation, fish-farming and duck-rearing were chosen as target sectors.
What impact has the project had?
We are now at the end of the second year of SLIPP and are pleased with progress so far. In the past year the project has really gained momentum, with a great positive response from participants. Producers from neighbouring villages (who were not part of the project) have seen the benefits of SLIPP and have demanded their inclusion in activities. Due to this, we have increased the number of producers we are working with from the 1200 originally planned to 1850, and over the coming year we expect that number to increase further to at least 2000. There is obviously a limit to the number of producers we can support, but by training over 250 local organisations to provide ongoing support and services in the area, producers that are not covered by SLIPP will be able to benefit. We have also successfully established strong relationships with local government organisations that are providing support to small businesses in the area.
The 1850 producers have been organised into 73 producer groups and are already seeing the benefits of working collectively. Many of these groups are jointly buying and selling things such as raw materials and business services, and seeing significant cost-savings. They are also negotiating with buyers and local government and several groups have also secured grants/loans.
It is too early to measure the economic impact of the project. However there is a lot of anecdotal evidence to suggest that many producers have already increased their incomes by reducing costs or increasing yields. Our local partner
Traidcraft Exchange is implementing this project with DEW (Development Wheel). DEW works to "enhance household livelihood security of the poor by increasing their participation, in small-scale economic activities with a range of business and other life skills".
How is this project funded?
The project is funded by the European Commission, grant-making trusts, and donations from generous individuals.
