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1. The Impact of COVID-19 Pandemic on Small and Medium Enterprises in Bangladesh

Author:
Asadul Islam, Atiya Rahman, and Rafia Nisat
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
BRAC Institute of Governance and Development (BIGD), Brac University
Abstract:
Like other economic players, the novel pandemic severely hit small businesses—the larger source of growth and employment but also the most vulnerable sector—by disrupting national and international business networks, supply chain, and demand. To understand the evolving state of small enterprises during pre, par, and post-lockdown periods, BIGD in collaboration with Monash University, Australia conducted a survey on small enterprises, mostly light-engineering firms, and young workers across 18 districts in Bangladesh. The study finds that lockdown measures caused the majority of small enterprises to shut down, and during the early period of relaxing the lockdown, one-third of the enterprises were operating at limited capacity. Demand drop and the burden of fixed costs to run the businesses were the prominent reasons behind the drastic fall in profit. As a result, workers were losing jobs and the gender gap was widening, because female labour-intensive work (i.e. beauty parlour, tailoring) was affected harder. Other findings of concern include the emerging vulnerabilities for the enterprises with lower endowment and poor access to government stimulus packages and other financial support. The study emphasises on the importance of concrete targeting criteria and support delivery platforms to assist more vulnerable enterprises. Finally, it highlights that the enterprises that received BRAC’s intensive training on occupational health and safety (OHS), along with business training and financial linkages, made double profit compared to their counterparts. However, the absolute amount of profit was substantially lower for both groups, compared to their pre-COVID profit, indicating the importance of scaling up such intensive training to create more resilient enterprises in such crises.
Topic:
Development, Employment, Economy, Business, Pandemic, and COVID-19
Political Geography:
Bangladesh and South Asia

2. How Sustainable Are the Impacts of Vocational Training?: Evidence From BRAC’s Intervention

Author:
Atiya Rahman, Anindita Bhattacharjee, Rehnuma Rahman, and Zion Rabbi Samadder
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
BRAC Institute of Governance and Development (BIGD), Brac University
Abstract:
In Bangladesh, the school dropout rates at both the primary and secondary level are quite high. Majority of the school dropout children end up unemployed or in low-quality jobs. Hence, training programs can be a potential solution to address the rising unemployment among school dropout youths. In this context, BRAC piloted a program titled “Skills Training for Advancing Resources (STAR)” in the five divisions of Dhaka, Chattogram, Sylhet, Rajshahi, and Khulna in 2012, in partnership with the Bureau of Non-formal Education (BNFE). During this pilot phase, the program provided livelihood skills training to a pool of 1000 urban adolescents aged 14-18 years, who completed five years of schooling under the Basic Education for Hard to Reach Urban Working Children (BEHTRUWC) project of the Bureau of Non-Formal Education (BNFE). This study uses three rounds of quantitative data (collected in 2012, 2013 and 2015) to estimate the short and long-run impacts of the pilot phase of the STAR program by employing different techniques such as Difference-in-Difference (DiD) with fixed effect, Propensity Score Matching (PSM) and DiD using PSM and also includes qualitative methods to supplement the quantitative findings. Specifically, this study estimates the impacts on employment, income, savings, early marriage, etc. of adolescents, and on household welfare. Findings show that the positive impacts on the adolescents’ labour market participation and monthly income are sustainable and higher in the long-run. In particular, the participants significantly shifted to the skilled labour market in the long-run. The impact on employment has been found to be higher for female participants. The program also significantly reduces early marriage (for females). Additionally, positive impacts are found on empowerment, self-confidence and workplace environment. The study recommends- keeping the profile of trades consistent with market demands and the participants’ age as well as their individual interests and ensuring post-training follow up by program staff, among others, to make this program even more effective.
Topic:
Education, Employment, Vocational Training, Sustainability, and Labor Market
Political Geography:
Bangladesh and South Asia

3. The Effects of Skill Training on Livelihoods: Evidence from BRAC’s Intervention on School Dropout Adolescents

Author:
Rehnuma Rahman, Atiya Rahman, Zion Rabbi Samadder, and Abdul Bayes
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
BRAC Institute of Governance and Development (BIGD), Brac University
Abstract:
The school dropout rate in Bangladesh is estimated to be about 40 per cent at the secondary level. The majority of the dropouts is most likely to remain unemployed or, if employed, engaged in low paying and hazardous work in the informal sector. With the aim of producing a well-trained and empowered youths, BRAC initiated ‘Skills Training for Advancing Resources (STAR)’ program in 2012. The program provides on the-job and classroom training in various informal trades to disadvantaged school dropout adolescents aged between 14-18 years. This study estimates the effects of the program on employment, earning levels, financial assets, empowerment and household-level welfare. The results show that the intervention succeeded in increasing labour market participation and earnings of the adolescents. The magnitude of the effect on earning is about six times the baseline mean level of earnings. Increased earnings of the adolescents translated into household welfare– as proxied by food expenditures and durable asset holdings. Evidence also shows the positive effects of the program on enhancing empowerment, improving self-confidence, and preventing substance abuse. Further, the intervention appears to have improved workplace environment and job satisfaction among school dropouts. The cost-benefit ratio of the intervention is found to be about 1:3.
Topic:
Employment, Labor Market, Skills, and Schools
Political Geography:
Bangladesh and South Asia