Project description

Title: Developing Business Service Markets (Katalyst)
Financier: UK Department for International Development (DFID), Great Britain, Swiss Agency for Development and Cooperation (SDC), Embassy of the Kingdom of Netherlands, Canadian International Development Agency (CIDA)
Country: Bangladesh
Lead executing agency: Bangladesh Ministry of Commerce
Overall term: 2003 to 2013

Context

Despite steady economic growth, Bangladesh continues to be one of the poorest countries in the world. The private sector is essentially based on more than six million small and medium-sized enterprises, which make an important contribution to overall national income. The trades and agriculture play a major role in the generation of income. Bangladesh's economy and the country's enterprises are continuing to grow. However, increasing competition on globalised markets threatens to undermine future success.

Objective

The competitive potential of small and medium-sized enterprises is promoted in those growth markets in which poorer population groups are successful producers, employees and consumers. In this way, greater reduction of poverty is achieved.

Approach

The project: Developing Business Service Markets, also known as KATALYST, has been indirectly promoting small and medium-sized enterprises in Bangladesh since 2002 and is active in more than thirty different branches of business. Private initiative is the foundation for successful economic endeavour. Under the KATALYST motto "Help for Self-Help", the organisation supports enterprises only indirectly, but it does contribute to sustainable improvement of the framework conditions for private sector actors.

The key opportunities and constraints of a given market, and future trends, too, are passed on in order to give small and medium-sized enterprises and the poor population generally greater leverage at the right points. A further priority area for activities is the services market, which is of increasing significance. In this area important cross-cutting and complementary services are to be found, such as consulting or accounting firms. Local enterprises in various branches can use these services to consolidate their competitive positions.

The equality of women is particularly stressed along with socially and environmentally sound business practices: these are promoted as cross-cutting themes within the KATALYST project.

GIZ International Services is responsible for implementation of the project along with Swisscontact, the development organisation of the Swiss private sector.

Results achieved so far

Through collaboration with important actors such as trade and industrial associations, it has proved possible to make steady improvement in the business environment for SMEs. Economic endeavour in the target regions of the KATALYST project is crowned with success more often than in the past.

The furniture manufacturing branch of industry appears particularly promising. A number of measures, such as for instance the Mirpur Furniture Festival in March 2006 or support for courses in demand at the Underprivileged Children’s Educational Program (UCEP), a well-known institution for vocational training, enjoyed great success. Regions throughout the country have recognised the value of KATALYST measures and intend to introduce similar measures on their own.

Until 2008, more than 728,000 SMEs and agricultural enterprises were able to benefit from KATALYST activities and to increase their incomes. In the process, more than 183,000 new jobs were created.

Further information

• Local website of the project
  www.katalyst.com.bd