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Participants in an engaging discussion on financing support mechanisms for migrant workers and families
As part of the ‘Shafal’ program launched by the United Nations Capital Development Fund (UNCDF) and the Embassy of Switzerland, UNCDF and LightCastle Partners organized a ‘Stakeholder Consultation Session on Entrepreneurship Opportunities in the Remittance Landscape.’ Held on October 20, 2024, at the Hotel Bengal Blueberry in Dhaka, this session gathered key stakeholders to dive deeper into the prospects of entrepreneurship development aimed at enhancing the asset-building capacity and long-term financial security of migrant workers and their families.
Building on insights from LightCastle’s baseline study for the Shafal program, participants engaged in fruitful discussions about effectively channeling remittance flows into entrepreneurial ventures, investment opportunities, and the essential knowledge and skills needed by migrant workers and their families to succeed.
As the fourth and final session in a series of consultations, this gathering focused on identifying and enabling opportunities for entrepreneurship within the migration and remittance landscape. Participants discussed ongoing initiatives that support entrepreneurship for migrant workers, their families, and returnees, while also examining the associated challenges and benefits. The session aimed to uncover strategies for bridging structural gaps and promoting entrepreneurship uptake, as well as explore capacity-building approaches and support mechanisms essential for establishing a sustainable entrepreneurial ecosystem.
The consultation gathered a diverse group of experts from government, development, and private sectors. Key organizations included Bangladesh Bank and the National Skills Development Authority (NSDA). The TVET specialist from the Skills for Industry Competitiveness and Innovation Program (SICIP), a former director of BMET, highlighted capacity development priorities for migrant workers and their families. The Project Director of the RAISE Project from the Wage Earners’ Welfare Board discussed reintegration initiatives and entrepreneurship opportunities for returnee migrant workers.
Representatives from international development partners such as ILO, Winrock International, and Oxfam also participated, along with local NGOs and CBOs supporting migrant communities, including BRAC Migration Program, TMSS, WARBE, BOMSA, Awaj Foundation, and IMA Research Foundation. Additionally, participants from a2i, BRAC Skills Development Programme, Probashi Kallyan Bank, Dhaka Bank, BRAC Bank, and fintechs like Adorsho Pranisheba and Surjomukhi contributed valuable insights.
Dr. Md. Nurul Islam, TVET specialist at SICIP and former director of BMET, shared his perspectives on capacity development efforts
The stakeholder consultation revealed crucial strategies to foster entrepreneurship among migrant workers, their families, and returnees, with an emphasis on financial literacy, accessible business support, and policy interventions. Key recommendations included creating structured support systems, such as tailored financial literacy programs, dual-currency accounts, and diversified investment strategies. Stakeholders stressed the importance of guiding migrants to invest in sustainable businesses or government bonds while retaining control over their investments.
Participants highlighted the need for a stronger role from government and financial institutions in providing low-interest loans, grants, and savings mechanisms for returnees and women migrants, who face additional barriers in accessing financial support.
The consultation also underscored the need for alternative financing modalities, like credit guarantee schemes, to support entrepreneurship development for migrant families and returnees. These schemes can reduce risks for financial institutions and improve access to financing. Additionally, fintech solutions, such as mobile-based savings and micro-lending platforms, can enhance credit access for those without conventional collateral. Collaboration among financial institutions, fintech companies, the central bank, and development partners is key to implementing these programs.
Mohammad Mustafizur Rahman, additional director at SME & Special Programmes Department, Bangladesh Bangladesh, sharing his policy perspectives to support entrepreneurship development
Further, the consultation stressed the need for targeted entrepreneurship training and career counseling, tailored to different profiles of migrants—aspirants, returnees, and families. For returnees, mentorship and structured reintegration support were seen as vital, including establishing community-based cooperatives and business incubators.
The stakeholders emphasized the importance of early intervention in raising awareness and developing entrepreneurship capacity among migrant workers and their families. By learning about financial products, money management, investment opportunities, and planning for entrepreneurship or alternative income sources early in the migration process, migrants can make better financial decisions and enhance their economic resilience.
While several organizations currently offer entrepreneurship training, stakeholders highlighted the need to build on existing modules and create a more streamlined and customized approach that addresses the specific needs of migrant workers and their families, ensuring a more cohesive and effective learning experience.
The development of public-private partnerships, leveraging digital platforms, and fostering collaboration between local institutions and international stakeholders were also noted as key mechanisms to promote sustainable entrepreneurial ecosystems. Policy-level reforms, particularly regarding reintegration strategies and business registration, were called for to create a more conducive environment for migrant entrepreneurship.
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