1. TVET for Global Competitiveness Development of Microenterprise
Sector in Bangladesh
Mohammad Fazlul Kader
Deputy Managing Director
PKSF

2. Microenterprise No universally accepted definition of Microenterprise
Any small household-based economic activity with the investment of small amount of capital is considered as microenterprise.
Microenterprise is defined on the basis of the amount of investment and number of workers engaged in any economic activity.

3. Contributions of MEs In Bangladesh-
Six million microenterprises created employment for more than 31 million people.
ME sector is the source of 57 percent employment of the country.
MEs’ contribution to GDP is 25%.

4. Around 1. 2 million microenterprises financed by PKSF generated 1
Around 1.2 million microenterprises financed by PKSF generated 1.6 million fulltime employments and 1.0 million part-time employments.
The return on investment is higher in microenterprises than in small and large enterprises.
The return on investment for micro, small and large enterprises is 83, 45 and 27 percent respectively.

5. MEs in the global context
An overwhelming majority (92.7%) of the 22.3 million enterprises of European Union were microenterprises in 2012 (eurostat newsrelease Nov 2015).
Micro-businesses represent 92 % of all business in the United States. Micro-businesses in the United States created 41.3 million jobs (Bigger than you think, Association for Enterprise Opportunity).
Microenterprises in Japan account for 87% of total SMEs (Japan Small Business Research Institute 2013) .

6. Financial services for Microenterprises PKSF
PKSF launched Microenterprise Program in 2001
An entrepreneur can take up to BDT 1.0 million for microenterprise
Total number of micro-entrepreneurs 1.2 million.
Current loan outstanding BDT 66,388.0 million.

7. Sector wise ME loan of PKSF

8. Average wages in ME sector:
Average monthly income of a worker in typical microenterprises in processing sector is around BDT15,000 (USD 187)
Whereas in Japan, monthly salary in processing unit is USD1000-USD1500.

9. MEs in low-level technology trap

13. Advanced technologies in MEs

16. Value Chain Interventions
Value Chain Interventions made to untie knots in the value chains of different potential subsectors
PKSF implemented VC interventions in different subsectors that have growth potentials

17. Sub-sectors Cow rearing Beef fattening Safe vegetable cultivation
Sweet water mixed prawn culture
High value flower cultivation
Crab culture
Seaweed production
Mung bean
Shawl production by using power looms
Honey processing
Automobile workshops
Safe dry fish production
Imitation gold jewelry

18. Technology transfer
Proven technology should be transferred from both home and abroad for increasing productivity in ME sector.
PKSF has taken initiative to introduce proven technologies in different potential subsectors.
Crab hatchery technology has been transferred to the coastal Satkhira district from Vietnam.

19. Crab hatchery established to promote crab fattening subsector

20. High value fruit cultivation

21. Business clusters in Bangladesh
PKSF identified 600 business clusters of different activities in different regions of the country.
These cluster can be developed by providing financial services and non financial supports.
Technical skill development, infrastructure development and market linkage supports are essential to promote these clusters.

22. Floriculture Business Cluster Gadkhali, Jessore

23. Beef fattening business cluster in Kustia

24. Shoe making business cluster in Bhairab

25. Mini garments business cluster in Munshiganj

26. Light engineering and automobile workshop business clusters in Dhaka and Jessore

27. Technological supports provided in different subsectors
PKSF provides technological supports for promoting different subsectors through value chain subprojects

28. Technologies for safe vegetables

29. Introduction of Lilium
Technologies for high value flower cultivation
Introduction of Lilium
Introduction of new varieties

30. Technologies for livestock development
Mini veterinary lab
Model Cowshed
De-worming cows

31. Technology for Black Bengal Goat Rearing
Perch (Macha) system of goat rearing

32. Technology for sweet water mixed prawn culture
Prawn culture in Floodplains

33. Power loom technology for Shawl Production
Introduction of Power Looms in Shawl production

34. Skill Development
Workers of many potential subsectors need skill development training to enhance their capacity.
PKSF provided trade based skill development training on-
Cow rearing and beef fattening
Fish culture
Shoe making
Tailoring and dress making
Food processing
Automobile engineering etc.

35. Skill development is required for many farm and non farm sub-sectors
Livestock and poultry
Fisheries
Leather goods production
Jute goods production
Light engineering
Textile and garments
Electric and electronics etc.

36. Challenges of ME sector
Access to finance
Access to information
Low level technology trap
Infrastructure
Marketing
Branding of ME products
Skill development
Institutional Capacity Building

37. TVET Technical and Vocational Education and Training
Most of the people employed in microenterprises do not have adequate skills on their respective business.
Short or specially designed courses should be introduced to fulfil the demand of various promising subsectors like micro shoe industry, automobile engineering, weaving sectors etc.

38. Improvement of training methods
TVET
Improvement of training methods
procuring training/advisory services by them have to be innovative to suit their ability to use such services.
The job placement by establishing linkage between the training institutes and different manufacturing/processing microenterprises.

39. To strengthen TVET program
Policy and investment supports from the government
Increase number of TVET institutions
Enhance capacity and quality of the TVET institutions

40. Training programs on business, production, personnel and marketing management
Audio-visual techniques and ICT based distance learning system
Performance based investment in TVET Institutions

41. Thank you