Effectiveness Of Value Chain Interventions In Poverty Reduction: A Case Study Of Pace Selected Sub-project In Bangladesh

The report assessed the effectiveness of value chain support measures in reducing poverty by creating new employment, increasing income and asset accumulation of project participants. The project titled “development of technical skills, increasing income and creating employment opportunity of micro shoe industry entrepreneurs’ was selected for investigation in the Bhairab and Kishoreganj Upazilla. The study used a mixed method approach and data was collected from both secondary sources such as publications, project reports among others and primary sources like focus group discussions, key informant interviews, questionnaires and thematic content. 137 value chain actors in the micro shoe sub sector were sampled. Micro entrepreneurs received various value chain interventions according to their level in the chain. The results of the study show a significant 97% on average an increment of income for value chain actors, access to health care, education, savings and investment in their businesses. Technology also increased production and quality of shoes. However, few employment opportunities were created at producer level while other actors did not create any employment. Similarly, the study found that producers were able to create few new employment opportunities unlike other levels. With caution, the study also found that market linkage is a challenge for micro entrepreneurs and women participation is at employee level. In conclusion the provision of value chain interventions improved household poverty reduction. However, the persistence of market entry barriers advocates for stringent efforts that would increase women participation across all levels as entrepreneurs in forward markets, a complete package that addresses challenges faced by micro entrepreneurs including addressing external barriers to entry.