Assignment Name: Baseline Study of Sustainable Micro-enterprise and Resilient Transformation (SMART) Project

Country: Bangladesh

Client Name: Palli Karma-Sahayak Foundation (PKSF)

The Baseline Study for the Sustainable Micro-enterprise and Resilient Transformation (SMART) Project, funded by the World Bank and the Government of Bangladesh, and implemented by the Palli Karma-Sahayak Foundation (PKSF), aims to establish the foundational data necessary for promoting sustainable growth and resilience in microenterprises (MEs) across Bangladesh. The project focuses on microenterprises involved in agribusiness, manufacturing, and service sectors, particularly in areas vulnerable to climate change and environmental degradation. The survey’s primary goal is to assess the current environmental, economic, and social conditions of MEs to guide interventions that enhance climate resilience, resource efficiency, and cleaner production (RECP) practices.

Key objectives of the baseline study include:

1. Environmental Performance Assessment: Evaluate existing environmental practices and performance among MEs, with a focus on the adoption of RECP measures. The assessment will cover factors such as energy use, waste management, water conservation, and pollution control, identifying gaps and opportunities for improvement.
2. Economic Analysis: Examine the financial health, business conditions, and market access of microenterprises, including their growth prospects, profitability, and barriers to expansion. The survey will help to determine the economic impact of existing practices and the potential for scaling sustainable business models.
3. Social and Gender Dimensions: Analyze the socio-economic characteristics of the workforce, emphasizing gender inclusivity, access to credit, and the involvement of marginalized groups. The survey aims to identify disparities in economic opportunities and recommend strategies for empowering women and vulnerable communities through inclusive business practices.
4. Climate Change Adaptation and Resilience: Assess the preparedness of microenterprises to cope with climate-related risks, such as extreme weather events, rising temperatures, and shifting agricultural conditions. The survey will document existing adaptation strategies and suggest measures for enhancing climate resilience.
5. Sustainability Readiness: Identify the capacity and readiness of microenterprises to adopt sustainability-oriented business practices, including the implementation of eco-friendly technologies, compliance with environmental regulations, and the integration of sustainable supply chain practices.

The baseline study will involve a mixed-methods approach, combining quantitative surveys and qualitative interviews to gain a comprehensive understanding of the microenterprise landscape. Data will be collected from various stakeholders, including business owners, local authorities, community members, and industry experts, across the selected districts.

The findings from this baseline study will provide critical insights to PKSF and other stakeholders for designing targeted interventions aimed at promoting sustainable growth, resource efficiency, and climate resilience among microenterprises. The recommendations will guide future programmatic decisions, inform policy development, and contribute to achieving the Sustainable Development Goals (SDGs) in Bangladesh, particularly those related to economic growth (SDG 8), climate action (SDG 13), and gender equality (SDG 5).

In addition to producing detailed reports, the survey results will be disseminated through workshops, infographics, and policy briefs, ensuring that the knowledge generated contributes to a broader understanding of sustainable microenterprise development in Bangladesh.

DM WATCH LIMITED will deliver an extensive range of services for the Baseline Survey for the Sustainable Micro-enterprise and Resilient Transformation (SMART) Project. The assignment will involve a multi-phase approach encompassing data collection, analysis, reporting, and dissemination. The services include:

Inception Phase:

• Inception Report Preparation: The inception report will detail the study methodology, sampling framework, data collection tools, and a comprehensive work plan. This document will guide the assignment and ensure alignment with project objectives.
• Consultation with Stakeholders: Initial meetings will be conducted with PKSF and other relevant stakeholders to refine the research questions, define the scope of the study, and finalize the approach.
• Development of Study Tools: Tailored data collection instruments, including questionnaires, interview guides, and observation checklists, will be designed for the survey.

Data Collection and Field Research:

• Quantitative Data Collection: DM WATCH LIMITED will conduct a large-scale quantitative survey covering 13,000 microenterprises across the targeted regions. The survey will involve detailed questionnaires and physical observations to assess various operational and environmental parameters.
• Qualitative Interviews: The study will include 83 Key Informant Interviews (KII), 30 Focus Group Discussions (FGD), 9 In-Depth Interviews (IDI), and 30 case studies to gather insights on microenterprise operations, challenges, and opportunities.
• Environmental Testing: To evaluate environmental performance indicators, the team will conduct tests on 63 selected microenterprises, including:
• Drinking Water Quality Tests: pH, Total Dissolved Solids (TDS), Turbidity, Biological Contaminants ( coli, Total Coliforms), and Chemical Contaminants (Arsenic, Lead, Nitrate).
• Air Quality Tests: Particulate Matter (PM2.5) and Ammonia (NH₃) levels.
• Noise Level Tests: Measurement of noise levels in decibels (dB).
• Wastewater Quality Tests: Testing for pH, Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and Total Suspended Solids (TSS).
• Stakeholder Engagement: Interaction with microenterprise owners, community leaders, and local government officials will provide contextual insights into business operations and local economic conditions.

Data Quality Assurance:

• Field Supervision and Monitoring: Stringent quality control measures, including spot checks, back checks, and real-time monitoring, will be implemented during field data collection.
• Data Cleaning and Validation: Collected data will undergo rigorous cleaning, coding, and validation processes to ensure accuracy and consistency.

Data Analysis:

Mixed-Method Analysis: The data analysis for this project involves a comprehensive approach that integrates multiple methodologies to provide a thorough understanding of the collected data. Descriptive statistics will offer an overview of the dataset, econometric modeling will explore relationships between key variables, and geospatial analysis will examine patterns in the distribution of microenterprises. Qualitative data will be analyzed using content analysis, organized by themes, and triangulated with quantitative findings to ensure consistency. Additionally, specialized analyses such as Economic Rate of Return (ERR) analysis, gender analysis, risk perception analysis, and accessibility analysis will be applied to assess financial viability, gender equity, and service accessibility, among other factors. This multi-layered approach ensures a holistic evaluation of the microenterprise ecosystem and its alignment with sustainability and economic development goals.

Quantitative data analysis will be performed using advanced statistical tools such as SPSS, STATA, and R, while qualitative data will be analyzed using thematic coding. GIS tools will be used to map spatial variations in economic and environmental conditions,

Reporting and Validation:

• Draft and Final Report Preparation: The team will prepare draft reports, which will be reviewed and validated through stakeholder workshops. The final report will incorporate feedback and provide actionable recommendations.
• Strategic Recommendations: Recommendations will focus on pro-poor business growth, sustainable practices, and inclusive development strategies to promote microenterprise resilience.

Capacity Building and Dissemination:

• Workshops and Training: Dissemination workshops will be organized to present findings and recommendations, and to share best practices with stakeholders.
• Infographic and Policy Brief Development: Visual materials, including infographics and policy briefs, will be created to communicate key findings to a broader audience.

Ongoing Support:

• Post-Assignment Assistance: The team will continue to engage with PKSF to provide additional support in integrating findings into future program planning and policy development.

These comprehensive services will ensure that the Baseline Study provides PKSF with a thorough understanding of the microenterprise landscape, enabling data-driven decision-making for sustainable growth initiatives.