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#18MCSummit 4/24/2 2 1 Assessment of Sites’ Suitability for Microenterprises Development Dr. Syeda Khaleda

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Page 1: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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3/29/16 1

Assessment of Sites’ Suitability for Microenterprises

Development

Dr. Syeda Khaleda

Page 2: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Why Assessment of Sites’ Suitability

needed?Agro-based microenterprises (MEs) are many

and several subsector/clusters develop in different areas.

MEs are highly influenced by physical environment.

Not all MEs are located in equally favorable places and equally benefited .

They require different level of support .

Page 3: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Research methodology

•Sample survey & interview to microentrepreneurs•Questionnaire interview to livestock experts •Microentrepreneurs survey to cross-check sites’ suitability

•Digital data compiled and analyzed using GIS• Analysis of digital data to understand distribution of MEs/farms and production in different suitability sites

GIS is an integrated assembly of computer hardware, software and geographic data

Page 4: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Origin and destination of poultry supply chain

Wholesale market of chickens in Dhaka

Wholesale market of eggs in Dhaka

Truck loaded with eggs

Page 5: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Poultry microenterprises and identification of criteria Spatial economic factors - highways and roads - market places/growth centers - government livestock offices Physical factors -land and flooding Constraints -rivers and water bodies -location of forests

Note: Market means large market places in Gazipur, for input materials, and should not be confused with consumer market for selling eggs/chicken, which is in Dhaka.

Page 6: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Criteria score classification and standardization using GIS

Each factor was classified into 4, ranges of data were selected. Constraint image was incorporated.Each criteria map was reclassified into five and given:-a physical score from 0 to 4 -scoring levels (4 to 0) of highly favorable, moderately favorable, marginally favorable, unfavorable and constraints.

Page 7: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Categories of criteria (Factors and constraints)

Factors Class 4Highly favorable

Class 3Moderately favorable

Class 2Marginally favorable

Class 1Unfavorable (currently)

1. Distance to market (m) 1,000-1,500 1,500-2,000 2,000-2,500 0-1,000; 2,500 and above

2. Distance to govt. office (m) 1,000-2,000 2,000-3,000 3,000-4,000 0-1,000; 4,000 and above

3.a. Distance to highways (m) 1,000-1,500 1,500-2,000 2,000-2,500 0-1,000; 2,500 and above

b. Distance to roads (m) 250-500 500-750 750-1,000 0-250; 1000 and above

4. Landform and flooding during peak rainfall period (cm deep)

High land to medium high land (less than 30)

Medium high land (30-90)

Low land(90-180)

Very low land (180-300)

Constraints Rivers, water bodies and forest areas

Criteria for poultry microenterprises

Page 8: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Highly favorable

Moderately favorable

Marginally favorable

Unfavorable Constraints Total

2.6 4.2 5.5 76.6 11.0 100.0

Suitability of sites for proximity to government livestock office as a percentage of the surface area

5 unions are favored for support services with regard to distance of government livestock offices, and have 10% to 30% of their areas scored as highly favorable.

21 unions have 100% of their area scored as unfavorable.

Page 9: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Highly favorable

Moderately favorable

Marginally favorable

Unfavorable Constraints Total

4.2 4.1 3.9 76.9 11.0 100.0

Suitability of sites for highways for poultry MEs as a percentage of the surface area

25 unions have no area that scores highly favorable and relatively small areas score moderately favorable to marginally favorable.

Page 10: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Highly favorable

Moderately favorable

Marginally favorable

Unfavorable Constraints Total

4.7 6.4 8.0 69.9 11.0 100.0

Few unions have highly favorable areas with regard to proximity to market/growth centers. 6 unions have no

area that score highly favorable / moderately favorable.

Suitability of sites for proximity to markets as a percentage of the surface area

Page 11: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Highly favorable

Moderately favorable

Marginally favorable

Unfavorable Constraints Total

52.8 8.2 10.7 17.4 11 100.0

Suitability of sites for the factor of flooding land as a percentage of the surface area in Gazipur

Unions in the south-east score unfavorable of more than 70% of their area

Page 12: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Sites’ suitability for poultry

microenterprises

Highly suitable Moderately suitable Marginally suitable Unsuitable Constraints Total

11.8 49.9 19.8 7.6 11.0 100.0

Suitability of sites for poultry MEs as a percentage of the surface area in Gazipur

17 unions have extensive highly suitable/ moderately suitable sites and occur in more than 70% of the area of those unions.Extensive unsuitable areas are located in the south eastern part of the district.

Page 13: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Highly suitable Moderately suitable

Marginally suitable

Unsuitable

Average size of farm (sq feet) 4150 3072 3235 1250

Average number of birds 2708 2025 2003 1135

Average number of employment 3.8 1.8 3.0 1.5

Average distance to market as a source of chick (km) 11.7 10 14 36.3

Average distance to market as a source of feed (km) 1.1 1.5 1.5 2.6

Average distance to paved roads from farm (km) 0.3 0.7 1.0 3.6

Average distance to government livestock office (km) 1.0 2.5 7.0 11.3

Level of flooding (cm deep) during severe floods 0 0 135 211

Average selling price of production (BDT/eggs) 8.9 8.8 8.7 8.5

Average transport cost for feed (BDT/bag of 10 kilograms of feeds)

10 10 15 16.3

Mode of transport used for carrying feed Rickshaw van Rickshaw van Rickshaw van Rickshaw van/boat

Comparison of poultry

microenterprises

Page 14: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Constraints in suitability sites Problems related to supply of input materials: availability of quality input materials. Problems related to marketing : absence of direct linkages with markets and opportunity for negotiation. Inadequate support service: inadequate demand driven support services. Inadequate and poor quality infrastructure: unpaved or semi-paved rural roads. Occurrence of natural calamities: regularly affected by natural disasters.

Level of suitability Highly suitable

Moderately suitable

Marginally suitable

Unsuitable

Distance to paved roads from farm (km) 0.3 0.7 1.0 3.6

Distance to government livestock office (km) 1.0 2.5 7.0 11.3

Distance of infrastructure

Level of suitability Highly suitable

Moderately Suitable

Marginally suitable

Unsuitable

Level of flooding (cm deep) during severe floods

0 0 135 211

Flooding situation

Page 15: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Extremely low concentration = 0-0.9 % ; Low concentration = 1.0-1.9 % ; Medium concentration = 2.0-2.9 % ; High concentration = 3.0-3.9 % ; Extremely high concentration = 4.0-5.0 %.

Geographic concentration

Very small = Less than 1,000 birds per farm Small = 1,001 birds – 1,500 birds per farmMedium = 1,501 birds – 2,000 birds per farm Large = 2,001 birds – 2,500 birds per farm Very large = 2,501 birds and above per farm

Average size of poultry MEs/farm

Percentage of poultry MEs/farms

Page 16: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Regionalization is essential: difference in constraints and profitability between suitability sites to help supporters to decide the areas for preferable intervention

Profitability reasons Nearness to market places - facility to buy quality of input materials-lower transportation costs. Road quality and Proximity -road quality decreases towards the remote villages.-unpaved roads spend huge cost and time. -farm located close to road, get competitive price.Size of Microenterprises-large MEs with huge output gets good price-big egg /chicken production gets good price-large MEs possess on farm storage and ability to negotiate- no credit constraint related to large MEs/farms.

Discussions

Transportation of feed using van by muddy road

Page 17: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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Recommendations

To reduce the cost in feeding in unsuitable sitesloan agreements with agents at a lower interest rate. agents would supply good quality feed at a reduced price up to the farm-gate.

Improved road :constructing quality roads in unsuitable areas.

Improved land :Keeping a special/additional allocation of funds for preparation of land by filling sand.

Page 18: Syeda Khaleda, Department of Disaster Management, Bangladesh, Research Symposium, Effective Practices in Microfinance and Financial Inclusion

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ConclusionsVast area in the South-East is unsuitable

with great concentration of MEs/farms.

This unsuitable area require the greatest effort and cost on priority basis.

Any support would be cost-effective.

The entire framework applied in the research are applicable for other agro-based ME production areas.