Khayr Zakariyya
The COVID-19 pandemic led to a concerning increase in the number of people living in extreme poverty in Southeast Asia, according to the Asian Development Bank (ADB).
In 2021 alone, the region saw an additional 4.7 million individuals pushed into the most severe poverty levels, effectively reversing the progress made in poverty reduction.
An Op-Ed titled From Poverty to Prosperity: The Power of Green Entrepreneurship in ASEAN co-written by Strategy and Partnership Director at the Economic Research Institute for ASEAN and East Asia (ERIA), Jakarta, Indonesia Giulia Ajmone Marsan and ERIA’s External Consultant on Inclusive Education Rubeena Singh, the authors highlighted that poverty is a pressing issue that continues to impact millions of people across the ASEAN region. They wrote that ASEAN is highly vulnerable to climate change for several reasons.
These include its distinct geography, densely populated coastal regions and other vulnerable areas with active economic activities, and its heavy dependence on agriculture and other livelihoods linked to natural resources, especially in rural communities.
They believe that governments and public institutions cannot solve these problems alone.
The business sector plays a crucial role, particularly in recognising the significant potential of green entrepreneurship to address poverty and promote sustainable development in ASEAN.
Green entrepreneurs are business owners who establish and run environmentally sustainable businesses, contributing to both social and economic development.
“By creating jobs and promoting sustainable practices, green entrepreneurship can significantly impact poverty reduction,” said the authors. Innovation is vital in this context. Start-ups and emerging companies have the power to bring about significant transformation. They are the future as they develop new business models to tackle unresolved challenges. The importance of innovation and start-up creation in the sustainability and inclusion field is clear.
The authors said, “If some groups of individuals feel excluded because for them the green transformation is too costly, incomprehensible, or complicated, the transition towards sustainability will take longer or not happen at all.”
In ASEAN, some inspiring entrepreneurs successfully merge the green transition and inclusion. One example mentioned was the Philippines-based social enterprise, Rags2Riches, which empowers over 900 women in impoverished communities by training them to create sustainable fashion products using scrap materials.
The authors said that access to education and training is crucial to promote green entrepreneurship further and alleviate poverty.
They also highlighted that green entrepreneurs require knowledge and skills in sustainable practices and technologies, which can be obtained through targetted educational programmes. “By improving access to education and fostering environmental consciousness, ASEAN can tackle the underlying causes of poverty and contribute to sustainable development. Governments and non-governmental organisations can play pivotal roles in providing these resources to communities in need.”
Moreover, the authors said that by promoting sustainable agriculture and environmentally friendly practices, green entrepreneurship could contribute to food security and better health outcomes for these communities.
In closing their Op-Ed, the authors noted that policies and initiatives to support green entrepreneurs across ASEAN, from dedicated access to financing, education and training, enhanced investments in green R&D both in the business sector and in public research labs and universities, attraction, and retention of talent through green entrepreneurship visa schemes, all have the potential to find smart solutions to environmental problems while, at the same time, doing good for our societies.
