Mark Sultan Gersava, a peace development worker from Mindanao, recognized a pressing challenge and took action. He decided to transform ordinary products into environmentally friendly alternatives to combat climate change while empowering his local community with sustainable livelihoods. His enterprise, Bambuhay, produces bamboo straws and toothbrushes as substitutes for plastic-based items. So far, his ambition has had a positive impact on 13,910 farmers, providing them with a sustainable source of income and lifting 68 families out of poverty. Additionally, Bambuhay has helped remove approximately 1,100 tonnes of plastics from the environment and has planted nearly 40,000 trees and bamboo.
Consumers wholeheartedly embrace Mark’s products, and multinational companies have recognized their value. Notably, Bambuhay supplied bamboo straws to Coffee Bean and Tea Leaf in the Philippines. This success story aligns with our celebration of the United Nations’ MSME Day on June 27. The occasion acknowledges the significant contributions of micro, small, and medium-sized enterprises (MSMEs) to the achievement of UN Sustainable Development Goals. Bambuhay serves as an inspiring example of how MSMEs can play a vital role in transforming Asean toward a circular economy and preparing the region for a sustainable future.
According to the World Economic Forum, Asean is expected to witness an increase of 140 million new consumers by 2030, representing a 16% global rise. Fortunately, there has been a notable shift in consumer behavior, with a greater emphasis on sustainable products. Consumers are now willing to pay a premium for goods that have a positive impact on their health and the environment. The COVID-19 pandemic further amplified this trend, as communities rallied together to support socially responsible enterprises. As a result, innovative solutions promoting waste reduction, resource conservation, and self-sufficiency through locally sourced goods have emerged.
MSMEs are deeply ingrained in local societies and are widely recognized as vital contributors to socioeconomic development. In Asean, they account for 85% of employment and 44.8% of the region’s gross domestic product. Despite their importance, MSMEs face challenges, including adapting their business approach, limited capital, and constrained budgets. To ensure their survival, MSMEs must embrace circularity and the efficient utilization of resources.
Creating an enabling environment for MSMEs to flourish within a circular economy requires governments to implement long-term strategies that incentivize economic growth. In Asean, we are committed to promoting circularity among MSMEs throughout the region. The adoption of the Framework for Circular Economy for the Asean Economic Community in 2021 lays the foundation for a supportive ecosystem for circular business models. Additionally, government-private sector collaborations provide platforms for sharing best practices and inclusive policymaking processes. Capacity building and awareness-raising initiatives, such as the Climate Change Guidelines for Asean SMEs and the Asean SME Academy’s Business Continuity and Resilience Tab, equip MSMEs with the necessary tools to address climate-related risks and implement sustainable approaches. Furthermore, partnerships between businesses, innovators, service providers, and investors are crucial. Asean Access, our flagship platform for MSMEs to internationalize, offers business matching opportunities for circular MSMEs to showcase their offerings and connect with potential buyers around the region.
The success of Bambuhay in addressing climate change and poverty while securing partnerships with multinational companies exemplifies the economic advantage of sustainable business models for MSMEs. As we recognize the importance of MSMEs and their role in the economy, we must also acknowledge the challenges they face in accessing financing and technology. By addressing these challenges and creating a conducive environment for MSMEs to thrive, we can unlock their full potential and contribute to sustainable economic growth.
Kao Kim Hourn is the Secretary-General of Asean. Note: This article was originally published in The Jakarta Post and is written by Asia News Network.
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