Reinventing the City

REINVENTING THE CITY:

THE ROLE OF SMALL SCALE ENTERPRISE

Asia Branch

Dean Pallen

2001

April 2001

Catalogue No.: E94-310/2001 ISBN: 0-662-65663-6

Printed in Canada

The information contained in this document does not necessarily reflect the policies of the Canadian International Development Agency.

TABLE OF CONTENTS

Acronyms Executive Summary

1.0 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 The Place of Small Scale Enterprise in a New Era of Urban Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 A Changing Development Context and the Rational for this Document . . . . . . . . . . . . . . . . . . . . . . . . . 21.3 Regarding the Content of this Publication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 Chapter Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.5 Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.0 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.1 The ‘Survival Economics’ of Urban SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.2 The Home as a Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.3 Community Space as a Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102.4 Transportation and Urban SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182.5 The Blurring Distinction Between Urban and Rural Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . 212.6 The SSE Sector and Housing Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222.7 Local Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.8 Environmental Impacts of SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2.8.1 HBEs and the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262.8.2 Local Government and the Environmental Standards of SSEs . . . . . . . . . . . . . . . . . . . . . . . . . 272.8.3 The Environment and SSE Recycling Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292.8.4 Environmental Problems in Peri-Urban Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302.8.5 The Safety of the Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

2.9 The SSE Paradox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332.10 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

3.0 Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373.1 The Participation of Entrepreneurs and Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373.2 The Participation of Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383.3 The Importance of Starting Small . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383.4 Improvisation, Innovation and Imitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

3.4.1 Improvisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393.4.2 Imitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403.4.3 Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Chapter One Introduction

Chapter Two Working in the City

Chapter ThreeFacilitating Innovation and Opportunity — The Environmentand Entrepreneurship in Cities

TABLE OF CONTENTS (cont’d)

3.5 Promoting More Responsive Municipal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403.6 Informal Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423.7 NGO Involvement in the SSE Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433.8 Land Tenure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433.9 Enterprise Incubation and Extension Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433.10 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453.11 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

4.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.1 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.2 Facilitating Sustainable Home Based Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.3 Supporting SSE Outside the Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564.4 Selective Greening in Support of SSE Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.5 An Ideal Community Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.6 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

5.0 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635.1 Occupational Health and Safety Standards for SSEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635.2 From Waste to Green Pastures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675.3 Clustering and Common Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675.4 A New Look at Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705.5 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725.6 Appropriate Environmental Management Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735.7 Eco-Industrial Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745.8 New Environmental Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745.9 Summary of Key Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

6.0 In Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Bibliography

Chapter Four Redesigning Communities

Chapter Five Improving the Environmental Performance of SSEs

Chapter Six Conclusion

Acronyms

ADB Asian Development Bank

CIDA Canadian International Development Agency

CMCH Centre for Minimum Cost Housing, McGill University

EA Environmental assessment

EIP Eco-industrial park

GNP Gross National Product

HBE Home based enterprise

HUDCO Housing and Urban Development Corporation

IADB Inter-American Development Bank

ILO International Labour Organization

LME Large and medium size enterprise

NGO Non-governmental organization

NMV Non-motorized vehicle

OHS Occupational Health and Safety

PRA Participatory Rural Appraisal

SSE Small scale enterprise

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

UNICEF United Nations Children’s Fund

UNIDO United Nations Industrial Development Organization

WHO World Health Organization

WISE Work Improvements in Small Enterprises

Executive Summary

An important characteristic of the urban environment in developing countries is the level of small scale economic activity thattakes place. Small scale enterprise (SSE) is an important fact of economic and social life in these cities. SSEs operate in a varietyof permanent and non-permanent settings, from the home (HBEs) to small scale factories. They are great sources of economicingenuity, and are creating employment for a growing percentage of urban populations. The varied economic opportunitiesoffered by the largely unregulated SSE sector are a critical weapon in the struggle against poverty, particularly for women.

Another important characteristic of SSEs within the urban and peri-urban environment is their potential to contribute to poorenvironmental standards. It is the proverbial vicious circle, with many SSEs operating with poor technology in substandardconditions, while receiving few services from municipal governments to help counter the negative environmental impacts of theirproductive activities. As a result, SSE environmental standards have become a source of tension between local authorities andentrepreneurs.

This document looks at these two governing characteristics of economic life in cities in developing countries, making a case forthe role of SSEs within urban development plans and strategies, showing both the positive and negative aspects of HBEs andSSEs, illustrating what is already being done to improve environmental standards, and explaining what more could beaccomplished.

Issues that are explored in some detail include spatial considerations related to HBEs and SSEs, appropriate transportationservices and energy sources, occupational health and safety issues, convergence of urban and rural SSE activities, selectivegreening of cities to mitigate polluting elements, sector clustering to combine services, the relationship between SSEs and othertypes of industry, environmental management, and the role of local governments and development practitioners.

This document presents its case for the role and potential of SSEs through the use of numerous examples, demonstrating whatneeds to be done in terms of improving the performance and standards of this sector, and what is already being done incommunities around the world. The essential message is that SSEs, if properly supported, can improve the environmental andliving standards of cities. These flexible and creative sources of employment are clearly meeting a need and should not beexcluded from new urban planning strategies.

1.0 Background

Increasing concern is being expressed over the state ofurban centres in developing countries. National and localgovernments, community groups and aid agencies aresearching for answers to mounting problems related tothe environmental and living standards of cities. Cities arein peril as a result of high levels of pollution, decayinginfrastructure and transportation systems, and housingshortages. The physical environment of cities, and theeconomic and social opportunities offered by cities, are allbeing compromised. In cities of all sizes, places of work,play and socializing — and indeed places of beauty — arebeing negatively reshaped by urban decay.

Although cities remain engines of economic growth,ingenuity and employment for an increasing percentage ofthe world's population, they create what are consideredby many as the most harsh and brutal living conditionsknown to humankind. The degradation of the physicalurban environment is helping to entrench long-standingeconomic and social inequities. A growing percentage ofthe burgeoning population of urban centres is poor, and itis this sector of the population, more than any other, thatis carrying the burden related to the problems of urbandecay.

In many respects urban centres throughout the Southernhemisphere are in dire need of retooling andregeneration. This is certainly true in terms of:

• how infrastructure is maintained and services de-livered;

• where and how people are housed;• how buildings and neighbourhoods are designed; and,• how roads and transportation systems are planned

and maintained.

It is imperative that new ways are found to reinforce andreorganize responsibility and capacity to address thissituation.

1.1 The Place of Small Scale Enterprise ina New Era of Urban Planning

Over the last decade, a variety of new urban initiativeshave been launched by international, national andcommunity-based organizations in an effort to find waysto solve mounting urban problems. This recent activity, aswell as insight provided by new theoretical approaches tourban planning and urban environmental management(UEM), are creating a much broader and more in-depthknowledge and base of expertise. This is a first step toforging new practices that are more flexible, localized,democratic, sensible and responsive to the needs of thepoor, than those promoted in the past.

Yet, in a context where the assumptions guiding urbanplanning are changing, it is important to re-examine allfabrics of the urban milieu to see where solutions toproblems can be found. It is therefore appropriate toconsider a more prominent role for small scale enterpriseas a conduit for regenerating urban centres.

Small scale enterprise (SSE), for the purpose of thisdocument, encompasses both micro and small scaleenterprise activity. The definition is broad enough to coverboth productive and service-oriented enterprises of lessthan 50 employees, which operate in a variety of settingsfrom the home to small factories.

A large percentage of SSEs thrive in the informal sectorsof urban economies. The characteristics of informalenterprises can include: operating with lower overheadcosts and marginal capital investment; the absence offormal regulation and tax systems; and, possibly, a non-permanent worksite location. In addition to the informalsector, there are a significant number of SSEs operating aspart of the formal economy that are registered, pay taxes,and operate from established locations.

The combination of informal and formal SSEs representsthe most important economic component of the urbaneconomy. As the main entry point for entrepreneurialactivity, SSEs create more employment than any other

Reinventing the City: The Role of Small Scale Enterprise

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Chapter One Introduction

sector of the urban economy. National governments anddonor agencies have recognized this fact by increasingtheir support for small scale enterprise activity throughmicro finance programmes and other innovative vehiclessuch as incubator programmes.

In addition to creating employment, the SSE sector isvalued as a source of ingenuity and vitality, which in turninfluences urban communities beyond the realm ofeconomics. With the exception of housing, the ‘where’,‘how’ and ‘why’ of SSE activity constitute the mostimportant factors in determining how urban space andresources are used. It is therefore reasonable that the SSEsector plays a greater role in new approaches to urbanplanning.

In the area of environmental practices, many SSEs showgreat resourcefulness in minimizing waste and in recycling.Small operating budgets have made it necessary forentrepreneurs to find ways to make ends meet, and thisinvariably means making the best use of resources andlimited space. Moreover, most urban centres in thedeveloping world have active SSE sectors that provideservices in the areas of waste collection and recycling. Insome cities, the informal sector outperforms municipalgovernments in waste collection. [Ali and Ali: 1993]

Yet, not all is environmental perfection with SSEs. In fact,there are a vast array of environmental problemsassociated with urban SSEs. There are far too many SSEsin a variety of sectors — from tanning and electroplatingto artisanal activity — that can be the source of significantnegative environmental impacts on local communities.The diversity, changing nature and growing number ofurban SSEs create an enormous array of environmentalchallenges, both in terms of understanding and choosingappropriate remedial methods.

Most often SSEs operate in surroundings characterized byinadequate housing, transportation, water and sanitationinfrastructure, and health facilities. Cluttered streets, alleys,commercial parks and inappropriate building space —such as individual homes — often become makeshiftworkplaces that can create unsafe conditions for workers,family members and the broader community. It is withinthe context of the precarious existence of SSEs thatsolutions to environmental problems must be found.

Given the social and economic importance of SSEs, theemphasis must be on introducing corrective measures toreduce negative environmental impacts, and to ensurethat SSEs are at the centre of strategies which addressbroader problems impacting on the urban environment.Urban SSEs operate in an environment that canexperience rapid change through the adaptation of newideas and technologies. This dynamic provides a greatopportunity to create more sustainable patterns ofeconomic activity that can impact upon both theentrepreneurial milieu and other aspects of urban life.

Finally, it is important to stress that making a stronger linkbetween the environment and SSE activity is not solelyabout environmental standards. Efforts in this area shouldbe a part of a larger agenda to alleviate poverty, byincreasing and diversifying economic opportunities, and byimproving infrastructure, workplace and housingstandards. It is the intention of this document todemonstrate how this is possible.

1.2 A Changing Development Contextand the Rational for this Document

Reinventing the City: The Role of Small Scale Enterprise isdesigned to outline the conditions and factors that allowsmall scale enterprise to play a larger role in improving theliving and environmental standards of cities. Thedocument highlights ideas, innovations and practices thatare realistic from a technical, economic, political and socialstandpoint. A broad variety of options are presented onhow to incorporate small scale enterprise into schemes toimprove the physical environment of cities and eliminaterelated conditions contributing to poverty. An importanttheme of Reinventing the City is presenting solutions to theenvironmental problems created by SSEs.

It would have been useful in developing this publication ifa vast array of information and project experience hadbeen available. This, however, was not the case.Nevertheless, an extensive effort has been made tocollect and present as many key case studies as possible.This document benefits greatly from the knowledge andinsight emanating from related spheres of activity, whererefinements and the emergence of new approaches arecreating new options for working with entrepreneurs,workers, community groups and governments.


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In the economic sphere, a great deal of knowledge andexperience has been accumulated in recent years on howto assist SSEs. Micro finance, the practice of providingsmall loans to individuals and community groups, hasopened up new possibilities for assisting the poor ininitiating and enhancing economic activities for their ownbenefit. In addition, experiences with business incubatorprogrammes and related business services have shownhow cost effective instruments can be used to create newenterprises, protect struggling ones, and introducetechnological change.

The renewed interest in participatory development, duelargely to the emergence of Participatory Rural Appraisal(PRA), is setting new standards for development projects.This emphasis on participation, combined with morefundamental attempts to make governments moredemocratic, accountable and responsive, has created thepossibility of tapping into previously under utilized sourcesof collective and individual knowledge and skills.

Improvements in technology in a wide variety of areas,such as renewable energy and the transportation sector,are creating other possibilities. Yet the most importantdevelopment related to technology has been the shift inthinking, from placing emphasis on the technology itself, tounderstanding how technologies can be more successfullyintegrated into the activities of family, community and theworkplace.

Although not traditionally focused on the SSE sector, thefield of occupational health and safety (OHS) offers greatinsight on how changes can be made in the workplace toimprove safety standards and protect the environment,while improving economic performance. Pilot activities,undertaken by organizations such as the ILO, havedemonstrated an enormous potential to work with SSEsto improve OHS standards.

Also, donor agencies such as CIDA are placing a greateremphasis on developing practical tools and modifyingestablished practices for a more sustainable impact (e.g.,environmental assessment to ensure that small scaledevelopment activity is properly managed from anenvironmental standpoint). The collective result of theseexperiences is that much more is known about how towork with individuals, communities, entrepreneurs andlocal government to facilitate change.

1.3 Regarding the Content of thisPublication

It is important to underline a few key points concerningthis document. For reasons of expediency and focus,Reinventing the City does not examine the role played bySSEs in recycling and waste management. This subject isrelatively well documented and analyzed in a number ofpublications [see Fernandez: 1997, Haan et al.: 1998 andFuredy: 1990b]. Although much can be learned from theexperience of SSEs in this field, other topics and issuesneed to be addressed to provide a more comprehensiveoverview of the interrelationship between the urbanenvironment and SSEs, and the possibilities to promotechange. Nor will the use of command and controllegislation to police the activities of SSEs be explored.

Many would argue that the focus of this document shouldbe on the applicability of environmental measures,regulations and controls. However, in the context of thelargely unregulated urban economic process in which SSEsoperate and flourish, it could be argued that the emphasisshould be on working with the possibilities provided bythis very situation. Despite a few notable exceptions, theexperience to date with regulation and enforcement ofSSEs has been overwhelmingly negative. Until localgovernments are in a position to ensure adherence toenvironmental standards in a judicious and effectivemanner, the emphasis should be on working morecollaboratively, and finding other means to put pressure onSSEs to adhere to better environmental practices.

1.4 Chapter Outline

In addition to introductory and concluding sections, thisdocument is organized into four main content chapters:

Chapter 2: Working in the City

To better understand the SSE sector, this chapter presentsinformation on statistics and trends regarding the place ofSSEs in the urban economy. The SSE sector is examinedin relation to housing and transportation practices andstandards, trends, spatial arrangements, and localgovernment resources and capacity. The chapterconcludes with an examination of the environmentalimpact of SSEs in terms of resource utilization, and thesector's contribution to pollution, overcrowding and thefaltering infrastructure of cities.


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Chapter 3: Facilitating Innovation and Opportunity — The Environment and Entrepreneurship inCities

This chapter provides an overview of the conditions anddevelopment practices which could contribute toensuring that the ideas and suggestions presented insubsequent chapters are properly implemented. Thechapter examines the inherent attributes of cities and theurban entrepreneurial milieu conducive to facilitatingchange, and the potential role of local government,communities and entrepreneurs.

Chapter 4: Redesigning Communities

This chapter explores different ideas and approaches onthe spatial layout of communities, the housing andtransportation sectors, in relation to the improvedenvironmental integration of SSEs.

Chapter 5: Improving the Environmental Performanceof SSEs

This chapter focuses on the workplace and workers, andideas related to making urban SSE manufacturing activitycleaner and safer. Topics covered include occupationalhealth and safety practices, energy use, sector clustering toprovide common services, and industrial eco-parks.

Each content chapter concludes with a summary of thekey points.

1.5 Terminology

Throughout this document, the terms ‘urban centre’ and‘city’ will be used interchangeably. Other interchangeableterms will include ‘slum’, ‘informal settlement’ and ‘lowincome community’.


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2.0 Introduction

The very apparent pollution, squalidness, poverty andbreakdown of services found in cities in developingcountries can easily shape negative sentiments about whatit must mean to live and work in such conditions. Citiesin developing countries can be awful places because ofthese problems, but this does not tell the whole story.They are also highly animated, full of life and vigour. Muchof the credit for this goes to the SSEs filling the streets,alleys, markets, parks and buildings. A late evening travellerto Dhaka, Lahore, or other South Asian cities, is struck bythe noise and vivacity of the commercial activityemanating from the streets and other SSE workplaces.On market day in countless African cities, the limits of thetransportation system and infrastructure are quicklytested as the volume of commerce swells.

The resonating character of these cities is not the creationof city managers and planners. As will be demonstratedin this chapter, established planning grids andneighbourhood designs have largely been ignored bypeople to permit a more interactive and practicalrelationship between the home, common space andentrepreneurial pursuits. As such, SSEs tell us a great dealabout how urban centres could be designed differently.Clearly, small scale entrepreneurial activity is not the onlyfactor that comes to define what cities are, but for a largepercentage of the urban population it is a major element.

This chapter attempts to provide insight into theenvironmental, cultural, social, political and economicdynamics shaping the character and extent of smallenterprise in cities. To help set the stage, the chapterbegins with a brief examination of some findings andreflections related to the economic importance of urbanSSEs.

2.1 The ‘Survival Economics’ of UrbanSSEs

Below are a series of summary statistics and observationsregarding urban SSEs. They provide an interesting, ifoccasionally contradictory, portrayal of the sector. Certainof the points raised here will be elaborated upon in

subsequent sections of this document:• Most enterprises categorized as urban SSEs are very

small. In a study of African SSEs, the majority wereclassified as one-person operations. [Mead andLiedholm: 1998, 62] Yet some SSEs can employ largenumbers of workers. Informal waste collection andrecycling operations are good examples of this.

• A large percentage of SSEs are home basedenterprises.

• The percentage of the urban population finding workin the SSE sector is growing. The Asian DevelopmentBank (ADB) reports that three-quarters of all newjobs in South Asian mega-cites are created by theinformal sector. [ADB: 1999, 38] A World HealthOrganization (WHO) study found that 45%–95% ofthe workforce in developing countries can be foundin small factories and related industries. [reported inMcCann: 1996]

• Although the majority of urban SSEs are engaged innon-productive activity, there is a significant minorityinvolved in productive activity best described asindustrial.

• "In most countries the majority of (SSEs) are ownedand operated by women. Furthermore, since workingproprietors are the single largest category of thelabour force, the majority of workers are women."

[Mead and Liedholm: 1998, 64]

• Studies indicate substantial differences in economicefficiency by enterprise size. In particular, the "returnsper hour of labour are significantly higher forenterprises with 2-5 workers, compared to thosewith one person working alone. This increase ineconomic efficiency continues for the next higher sizegroup, those with 6-9 workers; thereafter, the resultsare more ambiguous."


• "(SSEs) are in a constant state of flux. During anygiven period, new firms are being created (new starts,or enterprise births) while others are closing; at the


5

Chapter Two Working in the City

same time, some existing firms are expanding andothers are contracting in size. Since these individualcomponents of change can move in oppositedirections, figures on net change mask the magnitudeof the churning that takes place."


• The overall contribution of SSEs to Lao's GrossNational Product (GNP) is between 6-9%. [Daniels:1999, 55] In a nationwide survey of Kenya, urbanSSEs were found to provide 50% of family income;18% of SSEs provided all the household income.[Daniels: 1999, 59] "One-third of all working personsare employed in SSEs and the sector contributes 13%to Kenya's Gross Domestic Product." [Daniels: 1999,63] In Guatemala, it is estimated that the urbaninformal economy accounts for 34% of the country'sGNP. In 1960, the informal sector accounted for only5% of Guatemala's GNP.

[Villelabeitia: 2000]

• A study of informal enterprises in Nigeriademonstrated that informal enterprises rarely havewritten down conditions of work or fixed workinghours. [Faphounda: 1985, 79] Informal enterpriseshave variable hours of operation, usually running forabout 11.5 hours every day. Only 4.4% of theenterprises operated for exactly eight hours a day,and about 7% operated for less than eight hours.Even though the enterprises had long operatinghours, they usually worked for one stretch at a time,rather than in shifts.

[Faphounda: 1985, 81]

• Most SSEs operate at low, often obsolete levels oftechnology. However, even in the most advantagedenterprises, progress can be made in technologicalcapacity.

[see King: 1996 and McCormick: 1998]

• In India, SSEs "produce crude, low price final products,which are sold to consumers either directly orthrough distribution channels. These firms aresometimes found to compete with larger firms thatexist in the same industry segment, but whichproduce differentiated products, that incorporatespecial design features that make it stand out."

[Vachini: 1991, 26]• Clustering, whereby a large number of enterprises

from the same or related sectors locate in the samearea, is an important phenomenon of the SSE sector.Clustering occurs for a number of economic reasonsto allow SSEs to achieve economies of scale, and sharetechnology and labour. Clustering can take manydifferent forms. Clustering in Asia and Latin Americacan be more sophisticated than that typically found inAfrica. [McCormick: 1998] For example, clusters inLatin America and Asia have been known to becomeimportant centres in the manufacturing of a widevariety of goods (i.e., from footwear to medicalinputs). [McCormick: 1998, 11] While in Africa,clusters can consist of thousands of micro enterprisesoperating at a very basic technological level.

[McCormick: 1998, 11]

• There can be considerable economic interactionbetween SSEs and medium and large scaleenterprises — e.g., SSEs are often relied on toprovide small implements in the production of largergoods.

• Cultural, social and family considerations can be asimportant as economic factors in determining thelocation, size and number of SSEs working on or in aparticular street or dwelling. Co-operation andmutual support can be found within enterprises thatnormally one would perceive to be in competitionwith one another.

[see Gough: 2000 and Benjamin: 1991]

The contribution of SSEs to the urban economy issignificant and growing. Although statistics vary, thetendency is towards estimating a high percentage of thepopulation finding work in SSEs — somewhere betweenone-half to three-quarters of the urban workforce. Themajor problem in undertaking statistical work on SSEs isstudying enterprises that mostly operate in a clandestinemanner outside the formal economy.

Yet, the most important point to retain regarding urbanSSEs is their role in combating poverty. By supplementingincomes and creating singular employment opportunities,SSEs are in many ways a last line of defence against certainpoverty, especially for women. The availability of flexible


6

SSE opportunities is of tantamount importance forwomen who must also contend with demanding domesticresponsibilities that tend to limit economic options.

2.2 The Home as a Workplace

Home based enterprises (HBEs) are the best example ofthe economic convenience afforded by the SSE sector.The concept of combining living and working space hasbeen around a long time, including in Europe where it wasvery common up until the Renaissance period. Thisarrangement served more than economic purposes,contributing greatly to medieval society by making the"medieval family a very open unit." [Schoenauer: 1992,228] Lewis Mumford, one of the earliest critics of modernurban life, described the European medieval home asfollows:

The medieval family included, as part of the normalhousehold, not only relatives by blood but a group ofindustrial workers as well as domestics whoserelation was that of secondary members of thefamily. This held for all classes ... for young men fromthe upper classes who got their knowledge of theworld by serving as waiting men in a noble family;what they observed and overheard at meal-timewas part of their education. Apprentices, andsometimes journeymen, lived as members of themaster craftsman's family. If marriage was perhapsdeferred longer for men than today, the advantagesof home life were not entirely lacking even for thebachelor.

[Mumford: 1961, 281]

The separation of the household from the workplace hada profound and lasting impact on the future evolution ofcities in European countries. In developing countries, thepractice of integrating home and entrepreneurial pursuitshas been kept alive for both economic and social reasons.It particularly thrives in places where strict rules aboutland use are not enforced.

[Medina: 1997]

The home doubling as a workplace reduces costs. Itaffords parents, mostly mothers, the opportunity to stayclose to and care for their children. Gough notes that "inalmost all low income settlements in (developing)countries, people in HBEs can be seen cooking, sewing,selling drinks and food, keeping animals, mending and

making shoes, manufacturing various goods, cutting hair,giving injections, and renting rooms." [Gough: 1996, 95] Inthe rapidly growing low income settlement of MadinaGhana, located on the outskirts of Accra, two-thirds of alldwellings have at least one HBE. [Gough: 2000] A studyof informal settlements in Port- au-Prince, Haiti,determined that home based entrepreneurship was sofar-reaching that housing units were treated as places ofproduction. [Fass: 1977 quoted in Tripple: 1993] Indeveloping countries, HBEs can be found in middle-classdwellings, especially in countries experiencing aneconomic downturn.

[Olufemi: 2000]

A study of HBEs in a ‘Bustee’ (Bengali for slum) communityin Calcutta describes the character of HBEs and how theycome to influence a neighbourhood's character :

• In the bustee, almost all of the homes located nearthe main or secondary roads have some kind of smallbusiness activity within their domestic space.

• Some households with interior locations are involvedin (productive) oriented activities like raakhi making,bidi making, tailoring, agrabatti rolling, etc.. Theseactivities do not require formal shops for theirdistribution.

• A number of shops (home based) selling the sameproduct can be sustained by high demand. Onlyspecial services shops, such as metal repairs, can belocated away from main roads.

• Given the use of domestic space for HBE activity,common spaces are shared by families for cooking,washing and drying clothes, relaxing, playing andsometimes eating. Thus a very close interrelationshipdevelops between houses and their spatialsurroundings. Spaces for domestic and incomegenerating activities exist and interact to the mutualbenefit of the bustee dwellers.

• Bustee dwellers sacrifice ‘living’ quality to a greatextent to accommodate their income earning activity,since this is important to their survival. Prime spaceis given over for income generation. The lack ofproper space forces them to adjust to the existingconditions as best as possible, often involvingsacrifices in other daily living activities.


7

[Ghosh: 1994, 77-79] Similar to Ghosh's findings, a study in Aba, Nigeria,determined that "usable space takes precedent overaesthetics and permanence, and both housing andenvironmental quality in terms of construction standardsare of little significance, compared with employment."[Nwankama: 1993] The drawing in Figure 2.2.1 is anoverview of the Gorcha bustee community in Calcutta,India, which is the focus of Ghosh's study. Figures 2.2.2and 2.2.3 are ‘section through’ drawings of two homebased entrepreneurs in Gorcha that established

enterprises in extensions of their homes.Box 2.1 is an extract from a study of HBEs of a verydifferent kind, found in the Viswas Nager settlement ofEast Delhi. Benjamin uses the term ‘neighbourhood-as-factory’ to describe the entrepreneurial activity of HBEsthere. [Benjamin: 1991] The experience of Viswas Nageris significant because it broadens significantly theperception of what constitutes HBEs, and the role theycan play in building communities. In Viswar Nager, a strong,well organized SSE sector, led by HBEs, worked with localofficials to improve conditions in terms of infrastructure


8

Box 2.1 The Home Based Factories of East Delhi

In the East Delhi colony of Viswas Nager, the outward image is of a typical Delhi settlement in various stages of construction —endlessly reproducing themselves through additions or subdivisions, and hectic movement of people and vehicles along the innerstreets. But these impressions are misleading. Inside the ‘houses’, generally in basements and on ground floors, are factoriesreminiscent of the Industrial Revolution. Machines whir in the dim and often dusty light, their operators supervised carefully byforemen.The cycle rickshaws that must be dodged in the streets are not only transporting people, but also raw copper stockand semi-finished copper wire among hundreds of small (home based) factories.

The production system of Viswas Nager has developed into a neighbourhood-as-factory — a network of small firms located inthe same area, which both compete and co-operate with each other. There is the pervasive smell of new brickwork and thenoise of machinery in front room shops. Their productivity stimulates the markets and creates job, which leads to even greaterproduction levels and continues a cycle of successful economic growth.

To observers, its seems impossible that sophisticated manufacturing takes place in such a rudimentary environment. As of 1991,up to 80% of the city's manufacturing was taking place in such neighbourhood factories. Industries support each other in EastDelhi. Copper wire and cable manufacturing industries depend on secondary manufacturing such as plastic recycling and cyclerickshaw fabrication.

Although all modes of transportation are used, the cycle-rickshaw is the key. Typically, cycle-rickshaws are hailed from the streetas needed, but some entrepreneurs maintain their own fleet. The differentiated transport system is well suited to the diverseconditions of the roads within the settlement. While heavy vehicles are efficient for transporting goods on high quality roads,only cycle-rickshaws and animal driven carts are capable of traversing the narrow, unpaved and flood prone roads located insections of the settlement.

By 1991, the colony had a workforce, political strength, a diversified property market and a number of local money lendingassociations. Viswas Nager is an example of difficult but successful co-operation between common people and institutions. Theefficiency of the colony's development by increments is a lesson for those who believe that massive public or privateinterventions in land and industrial development are necessary for economic progress.

[Benjamin: 1991,4-100]


9

Figures 2.2.1. 2.2.2, 2.2.3

Overview ofGorcha Busteein CalcuttaIndia[Ghosh, 94]

Section through of two home-based enterprises in Gorcha Bustee [Ghosh, 94]

and sanitation.2.3 Community Space as a Workplace

The first layer of outdoor SSEs are HBEs adjacent tohomes such as in figure 2.3.1 and 2.3.2. Nwankama notesthat in communities such as Aba, Nigeria, where HBEsflourish, the physical distinction between the interior and

exterior of the home is artificial, influenced primarily by"climate, the scale and organization of the outdoor space,and the nature of work and size of the enterprise."

[Nwankama: 1993, 128]

HBEs attached to and surrounding dwellings are part of alarger network of SSEs, operating in a diverse range of


10

Figure 2.2.4

Section through of another home-based enterprise and location in Gorcha Bustee. [Ghosh, 94]

outdoor locations and conditions. Some outdoor SSEsoperate with permits from established buildings andlocations in the same way small enterprises operate inCanada.Yet most do not. Although mostly service oriented,there can be very large, outdoor SSEs involved in heavyindustrial activity. [Pallen: 1997b] Depending on the degreeof by-law enforcement, any open or free space is a potentialworkplace — i.e., alleys, streets, sidewalks, railway lines,parks, intersections, markets, industrial parks and rooftops.

A study by McGill University’s Centre for Minimum Cost

Housing (CMCH) of two slums in Indore, India,documented the diverse and complex variations of spatialrequirements needed by an equally diverse assortment ofoutdoor work activities: "They varied from as small as 2square metres, in the case of paper bracelets, to as muchas 36 square metres for the repair and refurbishment ofwooden crates. Some of the activities needed shelter,others did not. Most required not only a work space, butalso a space for storing either raw materials or finishedproducts, or both."

[Rybczynski et al.: 1984, 21]


11

Figure 2.3.1

In Aba Nigeria, carpenter andhis apprentice use space at sideof house as a work space. Theworkplace is highly visible topasserbys. [Nwankama, 1993]


12

Figure 2.3.2

A beedi seller (Indian cigarette) sets up a stall along side a house in Gorcha Busteein Calcutta, India. [Ghosh, 94]


13

Figure 2.3.3

In Aba Nigeria, an overhead viewof two small shops, a breakfastjoint and used clothes storealongside a work place. The workplace is used for bicycle repairs.[Nwankama, 93]

There is also the phenomena of mobility: "There aremobile shops — carts and moveable kiosks — that areoperated by hawkers and peddlers. The distinctionbetween mobile and fixed shops can be blurred, sincefrequently the first stage of establishing a permanent shopis simply to park a pushcart in one location, and eventuallyto upgrade it into a semi-permanent structure."


Figures 2.3.3, 2.3.4, 2.3.5 and 2.3.6 are drawings from Aba,Nigeria, demonstrating the variety of uses and shapes ofoutdoor SSE space in that city.

To the outsider, the locations occupied by outdoor SSEscan appear overcrowded and chaotic. The impression is

that nothing has been planned. However, this is mostoften far from the truth. In fact, there is usually an innatelogic behind where and how enterprises are located. Postdescribes the situation of SSEs operating in the towncentre of Kassala, Sudan, as follows:

An intricate network of interdependency relations hasdeveloped, requiring that members of the sameprofessional group work at the same place (forexample, butchers, leather manufacturers, gold andsilversmiths, etc.). Tailors use the arcades in front offabric shops; retail grain sellers working the street arenear to their wholesale colleagues (where supply trucksunload); soft drink and fruit juice sellers occupy sitesnear the bus terminal; and craftsman are ideally situatedfor direct contact with the consumer ... Street traders in


14

Figure 2.3.4

Space between a road and railroad is used for block-making in Aba Nigeria.[Nwankama, 93]

particular rely on large streams of passers-by anddepend on small and frequent orders with suppliers. Theimportance of mutual proximity has even increased overthe last few years due to the chronic shortage of all sortsof commodities, making personal contacts and swiftcommunication vital in order to secure essential supplies.

[Post: 1996, 37]

The type of entrepreneurial networks and clusters

described by Post can be found in various shapesthroughout Africa, Asia and Latin America. Fromneighbourhood to neighbourhood and street to street,SSEs respond to the needs of local residents. At the sametime, cultural and family traditions can also intertwine witheconomic factors to influence the shape and character ofstreets and neighbourhoods [see Bishop and Kellet: 2000].


15

Figure 2.3.5

A wider street in Aba Nigeria is used for metal work and for auto repairs. [Nwankama, 93]


16

Figure 2.3.6

Small shops are built behind the railroad at a street intersection where tires, candies, gin and softdrinks are sold. Places are also available for hair braiding and a food vendor. [Nwankama, 93]


17

It is also not uncommon to find a number of womenselling the same goods and services in streets, shops orhomes, in close proximity to one another. This type ofpattern may have more to do with mutual co-operationand self-support, as opposed to the, by and large,economic motivation behind clustering. Moreover, with

the absence of such public buildings as communitycentres, and in some cases schools and religious buildings,the premises of SSEs such as tea houses can serve a socialfunction, by providing people with public meeting spaces.


Figure 2.3.7

Scene of the daily market in the main passageway of the Gorcha Bustee in Calcutta, India. [Ghosh, 94]

The patterns and arrangements of outdoor SSEs havedeveloped slowly over time and Post appeals to urbanplanners to be more appreciative of these ‘self chosenlocations’: "Although chosen under sometimes severeeconomic, cultural and physical constraints, theynevertheless demonstrate the rational of differingsettlement choices. Knowledge of the spatial logic ofsurvival is essential to the formulation and implementationof any proactive planning on behalf of small enterprises."

[Post: 1996, 39]

2.4 Transportation and Urban SSEs

Although most entrepreneurs in the SSE sector wouldprefer to own a motorized vehicle, the reality is that veryfew do, or ever will. A variety of transportation modes areavailable to SSEs, yet most rely on non-motorized vehicles(NMVs). NMVs, such as those found in Figures 2.4.1 and2.4.2, play an important part in the economic world ofSSEs and, indeed, in the overall economies of developingcountries. In Viswas Nager [see Box 2:1], a survey of


18

Figure 2.4.1

NMVs in Asia.[World Bank, 1995, 9]

entrepreneurs revealed that a major reason for theireconomic success was the availability and suitability of lowcost cycle-rickshaw transportation.

[Benjamin: 1991, 41]

As the World Bank points out, NMVs such as bicycles,cycle-rickshaws, animal carts, push and pull carts, are "nonpolluting, low cost mobility powered by renewable energysources that are well suited for short trips in most cities."

[World Bank: 1995, xii] In some cities and communities,NMVs can provide the most mobility. In Yogyakarta,Indonesia, almost 10% of the population live along theCode River, where access between houses or accessoutside the settlement to surrounding communities ispossible only by internal footpaths and narrow streets. Inother words, there is no access into and through Yogyakrtaby car.

[Nareswari: 2000, 3]


19

Figure 2.4.2

NMVs in Asia.[World Bank, 1995, 8]

SSEs, like all enterprises, rely on existing transportationsystems to move goods, provide services, and facilitateother economic activity. Yet today, neglected trans-portation networks are being refitted to facilitate themovement of commuters in automobiles, thereby addingto the problems of congestion and pollution. At the sametime, more realistic and pragmatic approaches to urbantransportation, which consider the needs of all users, areignored.

[see UNDP: 1992]

The World Bank [1995, 1] undertook a study of ten majorAsian cities and identified the following trends that impactnegatively on the use of NMVs:

1. Increased motorization (including the increased useof motorcycles) and a consequent reduction in thestreet space available for safe NMV use.

2. Exclusion of NMV needs in urban transportplanning and investment programmes, resulting ininadequate facilities for NMVs.

3. General trend toward modernization of Asia cities,which promotes attitudes that NMVs are backward.

4. Tendency to believe that NMVs are the cause ofurban traffic congestion.

5. Increased trip lengths caused by changes inmetropolitan spatial structure.

The World Bank adds:

In many Asian cities there is an apparent bias againstNMVs. Hanoi, Dhaka and Metro Manila are a fewof the cities that have as official policy the reductionor elimination of NMVs because of perceived impacton congestion and safety, as well as the ‘degradingnature of the work required of the operator’ ... theconsequence of anti-NMV biases is unbalancedtransport planning, which results in accommodatingthe needs of motorists at the expense of NMVoperators and users. Such unbalanced planning canactually lead to a deterioration of traffic conditions forboth motorized vehicles and NMVs.

[World Bank: 1995, 59-60]

In Jakarta during the 1980s, roughly 20,000 cycle-rickshawswere tossed into Jakarta Bay and another 30,000confiscated by city officials in a effort to eliminate‘backward technology’. [Gardner: 1998, 16] In some

countries, such as Vietnam, municipal policies have actuallycontributed to a reduction in bicycle use. [Gardner: 1998,16] Recently, the municipality of Rawalpindi, one ofPakistan's largest cities, banned NMVs in the old towncentre, where the streets are narrow and well suited tosuch vehicles.

Such attempts to reduce NMV use seem morepreposterous when one considers that the overall use ofNMVs in Asia is actually growing. [World Bank: 1995]Not only are NMVs more economical, they are also morepractical in most circumstances. Bicycles trips, forexample, compare favourably with cars for urban trips ofabout 2 kilometres. "In Beijing, bicycles are faster than thebus or subway for trips up to 6 kilometres and remaincompetitive with public transportation for journeys of upto 10 kilometres." [Gardner: 1998, 18] Subsequentchapters will discuss the efforts of certain municipalities tocapitalize on these inherent advantages to improve andincrease the use of NMVs.

Another aspect of NMVs that is not well known is thesignificant amount of small scale entrepreneurial activitythat exists in support of NMVs. NMVs are "labourintensive modes of transport that rely extensively on theuse of local technologies and skills." [World Bank: 1995,xii] The World Bank describes the importance of theNMV sector in Asia urban economies, as follows:

The cycle-rickshaw industry in Dhaka — includingdrivers, repair persons, owners, mechanics in assemblyshops, and retailers in components shops — directlyprovide 23 percent of the city's employment.Similarly, approximately 20 percent of the jobs inKanpur, India are in the NMV sector, which includesall employment related to bicycles, rickshaws, animalcarts and handcrafts. To the extent that motorizevehicles replace NMVs in these cities local economieswill drastically change with consequent dislocationeffects. Nevertheless, the inventory of Asian citiesconducted for this recent study found that localgovernments often underestimate the economicimpact of the NMV sector.

[World Bank: 1995, 57]

NMVs would seem to be as natural an ally as localplanners could hope to have in creating employment forvulnerable groups, providing affordable and accessible


20


21

... Auto rickshaws number over 3 million, and areamong the largest contributors to poor quality urbanair. They provide passenger as well as goodstransportation and account for a large percentage ofthe traffic on roadways. Many of these vehicles areup to 30 years old and still use leaded gasoline dueto the absence of strict emission regulations and theowners limited finances. The majority of the vehiclesare poorly maintained and do not employ exhausttreatment devises. Also, used oils are often added to

agricultural producers while urban dwellers are thought toengage in industry and services is increasingly misleading."[Tacoli: 1998a, 3] She goes on to add:

The growing evidence of the scale of and nature ofurban agriculture and of rural non agriculturalenterprises and employment suggests that thesedistinctions are over simplified descriptions of bothrural and urban livelihoods. The urbanization of ruraleconomies and employment structures is also often

transportation, and in reducing pollution and theovercrowding of cities. The relatively soft clanking ofbicycles, trailers and carts would seem to be a perfectantidote to overheated and noisy cities.

Two stroke engine auto-rickshaws, scooters and motorcycles are also very popular in Asia, and probably create aconsiderable amount of employment in the SSE sectorthrough repairs and other services. Yet unlike NMVs, auto-rickshaws and other small scale motorized vehicles arenotorious polluters. The Environmental Technology Centreof Environment Canada describes the state of auto-rickshaws in Asia as follows:

the gasoline at higher than the manufacturers’recommendation. The result is higher exhaustemission rates.

[Environment Canada: 1997, 3]

2.5 The Blurring Distinction BetweenUrban and Rural Entrepreneurship

Small scale entrepreneurial activity is a key dynamic in oneof the most significant changes taking place in developingcountries — the eroding distinction between urban andrural life. As Tacoli points out, the assumption of a sectoraldivide, whereby "rural populations are seen primarily as

The Ferozepur Road in Pakistan. Redefining rural work.

most evident in the areas immediately around or wellconnected to the urban areas.

[Tacoli: 1998a, 3]

This new reality is best observed in the growing peri-urban zones surrounding urban centres. In city outskirts,there can exist a conglomeration of entrepreneurialactivity encompassing industry, agriculture and serviceactivity. Increasingly, rural and peri-urban entrepreneursare operating closer to urban centres to have betteraccess to clients and reduce transportation costs.[Werna: 1997, 392] In Pakistan, the 50 kilometre longFerozepur Road that joins Pakistan's second largest cityLahore with the ancient city of Kashur is a case in point.From Lahore, on both sides of the Ferozepur Road,entrepreneurial activity dominated by the SSE sectorstretches for well over 15 kilometres. Agricultural activityis still very apparent from the road. [Pallen: 1999] It is notunthinkable that one day entrepreneurial activity along theFerozepur Road will extend from Lahore to Kasur.

In rural Bangladesh, agricultural revenue remains the mainsource of income. However, the percentage coming fromnon-farming activity is increasing dramatically. It has beenestimated that by 2005, over 62% of the rural populationof Bangladesh will find work in non-farming activities.[World Bank: 1997, 18] Moreover, increasingly the ranksof the peri-urban work force is made up of rural workerscommuting to peri-urban areas on a daily basis. [WorldBank: 1997, 18] In strictly rural areas, there are significantchanges taking place in local economies:

Manufacturing in permanent establishments(manufacturing outside the household, often with thehelp of hired workers), excluding handlooms, isdominated by traditional food processing, textiles andbasic metals, accounting for 85 percent ofemployment and 78 percent of value added ... Thesector has, nonetheless diversified considerably overthe 1980s. The list of the top 15 industries byemployment has changed considerably towards aclear urban and peri-urban tilt, both with regard tomarket orientation as well as enterprise location, andnon traditional small industries have experiencedrapid growth.

[World Bank: 1997, 56]

Similarly in cities, the practice of urban agriculture, definedas "the production of food and non-food through

cultivation of plants, tree crops, aquaculture, and animalhusbandry, within urban and peri-urban areas", is on therise. [Lindayati: 1996, 3] Urban agriculture is undertakento generate income and food for personal consumption.Backyards, front yards, planters, rooftops, abandonedbuildings, community lands, roadsides and other openspaces are all potential spots for urban agriculture. In the1980s, 60% of Greater Bangkok was used for urbanagriculture. [Mougeot: 1993] As a general rule, urbanagriculture finds creative uses for unserviceable pieces ofland, space and water. [Mougeot: 1993] Urban agricultureis drawing the attention of international organizations,such as the International Development Research Centre(IDRC) of Canada, who are trying to promote andimprove upon present urban agricultural practices.

Eventually, changing urban and rural circumstances aregoing to force development practitioners to rethink long-standing approaches to development and, in particular, thecentre piece of development activity, employmentcreation. New ways will have to be found to betterintegrate industrial and agricultural activity.

2.6 The SSE Sector and HousingStandards

A housing crisis exists in cities throughout the developingworld, in terms of both availability and quality, andattempts to provide basic shelter for the poor haveproduced mixed results. One problem identified byMcGill University’s CMCH, relating to SSEs, is thatplanners and government officials have never understoodthat there is "nothing basic about basic housing."[Rybczynski et al.: 1984, 1] In the past, the decision makingprocess in housing construction has been too heavily infavour of finding economic efficiencies in the site layoutthrough optimizing plot ratios and widths andconstruction material.

This approach leaves little room to consider issues ofculture, family complexities and home basedentrepreneurship. The solution, according to the CMCH,is a new set of settlement standards. "These standardsshould seek to accommodate, rather than to reorganize.They should reflect the (sometimes harsh) reality of theurban poor, and they should respond to their specialneeds, not to an idealized set of criteria."



22

The system of housing championed by the CMCH isbased on housing patterns found in informal settlements,where houses are routinely built or reconfiguredaccording to family size, cultural values and the need toaccommodate home based work. As Rybcznski pointsout, rather than viewing informal settlements as aproblem, more attention must be payed to understandingtheir good qualities in terms of how they respond to theneeds of people:

Informal Housing .... represents a solution rather thana problem. It is moreover, a solution that appears todeny conventional planning orthodoxy. The priorities ofthe slum dweller are frequently not those of themunicipal authorities. Space takes precedence overpermanence. A porch may be built before a bathroom;a workplace may be more important than a privatebedroom. The apparent inversion of values is especiallyevident in the public spaces. Whereas planned sitesand services projects usually incorporate rudimentary,minimal circulation spaces, the public areas or slumsare characterized by richness and diversity.

[Rybcznski et al.: 1984, 1]

Similar to the small enterprise sector that supports NMVs,networks of informal builders and renovators serve theinformal housing market. Informal builders are highlyresponsive to the building needs of the poor, and as aresult represent a very large share of the new housingbuilt in developing countries in terms of numbers andvalue. [ILO: 1995] Although SSE services in the housingsector may be more responsive, it is not clear what qualityof services are being provided. Carr-Harris, for example,believes there are major issues that need to be addressedin terms of health and safety standards, especially relatedto building materials:

As poor people generally build their own homes withoutany government subsidies, they are (often) forced touse expensive and hazardous materials. During visits

to four or five squatter areas in Delhi, it was noted thatasbestos was a material commonly used for roofing,when it is known to have a carcinogenic effect. Severalhomes have brick walls with black polythene that isbelieved to be associated with the high incidence ofcoughs, colds, pneumonia and tuberculosis as polytheneforms are inadequate cover against the cold and damp.Yet other homes had tin roofs which are inappropriatefor indoor cooking. These findings have beencorroborated by other studies of Delhi's urban poor.

[Carr-Harris: 30]

2.7 Local Government

This report cites a number of examples of national andlocal governments attempting to understand and improvethe circumstances under which SSEs operate. However,normally the relationship between SSEs and governmentauthorities is not healthy. SSEs face the same challenges aseveryone in terms of local governments not deliveringbadly needed services. As a result, there is a generalindifference towards governments and what they have tooffer, which manifests itself in a number of ways. InPakistan, for example, government officials claim that in acountry of 150 million people, only 1.2 million pay taxes.

[Bearak: 2000]

Also, SSEs must often operate under inappropriateregulations and by-laws that are administered andenforced in an uneven manner. Local authorities, who areunsure of how to deal with what appears to be chaos,disorder and defiance by SSEs, can end up taking steps thatlead to unfortunate events, such as what occurred inMexico City in 1995. In that case, police and hundreds ofinformal street vendors clashed violently after a legalorder was issued banning the vendors from the citycentre. The conflict arose, despite years of research anddiscussion, between the vendors and authorities regardingalternative arrangements. [Harrison and Mcvey: 1997]This type of incident has been re-enacted in countlessother locations in Latin America, Africa and Asia.


23

SSEs are reluctant to pay taxes because local governmentsdo not provide SSEs with infrastructure or services.Moreover, rarely will small scale entrepreneurs take thetime to register their enterprises. But even if anentrepreneur wanted to be formally recognized, there isusually little to be gained, except possibly a lot of red tape.Box 2.2 summarizes the famous study by Hernando deSoto on the obstacles faced by informal enterpriseswanting to be legally registered as a small industry.

2.8 Environmental Impacts of SSEs

There is no denying that unwanted environmental impactsare occurring as a result of urban SSE activity. In somecases, the consequences can be quite significant in localcommunities. The main negative environmental impacts ofurban SSEs are seen as follows:

1. Contribution to the congestion and overcrowding ofcities. The manner in which SSEs occupy publicspaces can be disruptive. Similarly, with shelterfunctioning as much as production units as homes,there are conflicts and undesirable compromisesabout how space is used.

2. Poor occupational health and safety (OHS) standardsput the health and safety of workers, entrepreneurs,family members and the community at risk.

3. The inefficient use of resources, resulting in pollutionand the absence of pollution mitigating technologies.

4. Indiscriminate use of hazardous substances, such aschemicals, dyes and disinfectants, in a wide range ofunregulated industries.

5. A wide variety of SSE activities for which little isunderstood about their environmental impacts.

6. In peri-urban areas, expanding small scale industrialactivity is absorbing farmland. Activities such asbrickmaking and small scale mining are playing havocwith local ecosystems.

SSEs may not be large in size but they are numerous, andgiven they often locate close to or within communities,there is great potential to do harm, especially to the poor:

Pollution affects the poor more than the better off as


24

Box 2.2 The Challenge in Becoming Legitimate

The Instituto Libertad y Democracia (ILD) undertook a simulation to measure the costs of access to industry. To do this, ILDrented the premises of an established factory, installed sewing machines, knitting machines and other implements, and recruitedfour university students to undertake the various bureaucratic procedures, under supervision of a lawyer experienced inadministrative law.

In addition to being very widespread in Peru and thus culturally significant, the activity chosen for the simulation was highlyrepresentative of the obstacles faced by small scale entrepreneurs. It required approximately 60% of the bureaucraticprocedures common to all individual activities, and 90% of those required of non-incorporated individuals. The team alsodecided to handle all the necessary red tape without go-betweens — as a person of humble origins would do — and to paybribes only when, despite fulfilling all the necessary legal requirements, it was the only way to complete the procedure andcontinue with the experiment.

The results showed that a person of modest means must spend 289 days on bureaucratic procedures to fulfill the 11requirements for setting up a small industry. The cost to establish a formal small industry represented the cost of 32 times themonthly minimum wage at the time.

[De Soto: 1989]

most (SSEs) (polluting or otherwise) are located in lowincome areas ... high levels of air pollution associatedwith small acid and chemical processing units in North-east Calcutta were largely ignored by the government ofWest Bengal despite protests by the low incomeresidents. The fact is that most direct victims of pollutionassociated with small units are poor or from low incomegroups. Their plight attracts little attention as they haveneither the resources nor the time to publicize theproblem.

[Dasgupta: 1997, 291]

In a study of SSEs in Asia, Kent [1991] concluded thatmanufacturing SSEs pollute more on a per unit basis thanlarger operations. In India alone, small scale industry issuspected of contributing 60% to 65% of total industrial

pollution. [MSG Environmental Services: 1999, 3] Box 2.3outlines a number of the SSEs identified in a UNDP studyin Lima (Peru), Harare (Zimbabwe), Bombay (India) andLeon (India), and the hazardous materials they employ inthe production process.

CIDA-sponsored studies in India [MSG EnvironmentalServices: 1999] and Bangladesh [Child: 1998] support thecontention that there are a variety of SSEs havingsignificant negative environmental impacts. The Indianstudy identified, among others, the following SSEs andtheir main environmental impacts:

Water-related environmental impacts: Starchproduction, rice mills, coffee, food processing, agro-residue, paper mills, textile dyeing and printing, tanneries,


25

Box 2.3 Pollutants and Hazardous Residues from Small Scale Industries inDeveloping

Countries

INDUSTRY PROCESS HAZARDOUS RESIDUES

Bricks Chronium, fluoride, sulphur, dioxide

Textile dyeing & finishing Cyanide, dyes, oils, resins, sodium hypochlorite, caustic soda, sodium carbonate polyphosphates

Canning Alkalis, bleach, solvents, wax

Glass and ceramics Arsenic, barium, manganese, selenium

Dry cleaning Solvents, bleach

Dye formulations Tin, zinc

Metal mechanics & metal finishing Caustic soda, sulphuric acid, iron oxide, zinc, solvents

Metal plating Polyphosphates, cyanide, caustic soda, chromium, zinc, carbonates, detergents

Automotive services & machine shops Burnt oil, oil adsorbents, solvents

Pickling Acid, metal, salts

Battery recovery Lead, cadmium, chromium, copper, nickel, acids, mercury, methanol

Paper recycling Methanol, mercury, titanium, zinc, wax pesticide formulations, zinc, copper,fluoride, organic phosphorus, phenol

Tanning Chronium, arsenic, sulphates bicarbonates, formaldehyde

Photography Cyanide, silver, phenols, mercury, alkalis

chemicals (including drugs and pharmaceuticals) andelectroplatingEnergy and air pollution-relatedenvironmental impacts: Bakeries, clay bricks,ceramics, glass, foundry, steel re-rolling mills andrefractories

Workplace health and safety problems: Majorityof SSEs, especially chemicals, clay bricks, ceramics, glass,foundry and plastics

[MSG Environmental Services: 1999, 4]

Small scale brickmaking has an notorious reputation forbeing highly polluting. Dirty fuel sources from burningtires, plastics and debris, and other forms of waste, are notuncommon [see Blackman: 2000]. Box 2.8.2 looks at thetannery industry in Kasur, Pakistan, and the attempts ofone NGO to help children and their families face the

often horrific consequences of working in and living closeto small scale tanneries. The case study is significant for anumber of reasons, but most notably for highlighting thework of one of the few NGOs working in the SSE sectoron environmental issues. This topic will be elaboratedupon in the next chapter.

2.8.1 HBEs and the Environment

Although most HBE activity can be described asenvironmentally benign [see Napier et al.: 2000], there canbe HBE activity that is highly problematic from anenvironmental and safety standpoint. In Semrang,Indonesia, there are 41 key HBE economic clusters. Ofthose, six clusters — food processors (tapioca crackers,fermented soybean cake makers), upholstery and metalhousehold utensil manufacturers, brickmakers andsmoked fish operations — were found to be highly


26

Box 2.5 Work Standards for Home Based Beedi Makers

In India, there are 35 million beedi rollers and 17,000 tobacco processors making hand rolled beedi cigarettes. Although 90%of the workers are women, the trade is controlled entirely by men. In a study of beedi workers, the homes were found tobe in poor condition, with barely enough space for all family members. The homes were damp, usually full of smoke, and hadopen drains outside full of discarded and stinking beedis. Only 50% of the houses had electricity, and the women were obligedto work using the inadequate light provided by kerosene lamps. [Bezborouah: 1985 quoted in Tipple: 1993, 531] Exposureto nicotine by beedi workers has been known to cause tobacco poisoning. Exposure to tobacco dust by beedi workers leadsto irritation in the eyes, conjunctivitis, rhinitis and interference of the mucosal surface. Pregnant women have exhibitedabnormal foetal growth.

[Carr-Harris: 13]

polluting. They impact negatively on local water supplyand produce unacceptable levels of waste.

[Untari et al.: 2000]Auto repair, small scale foundries and other manufacturingactivity are other types of HBEs that can createenvironmental hazards. In addition, OHS standards are amajor issue with many sectors of HBE activity [see Singhand Girish: 2000 and Panda: 2000]. For example, Box 2.5describes the situation of home based Indian beedi(cigarette) makers. Electronics and computers, otherpotential hazardous sectors, are two areas of growth ofHBE activity in the world. Throughout the world, largecompanies are contracting out to home based workers to

circumvent environmental and safety standards.[Baines: 2000]

Perhaps the most crucial environmental issue facing HBEsis the issue of the appropriate use of space. Althoughfamily members and neighbours are very tolerant of thenoise and the spatial imposition of HBEs, at some leveltransforming bedrooms and living rooms into HBEoperations must compromise the choices one can make,and in some cases create conflict. Clearly some forms ofHBE are ill suited for the kind of space and conditions thata home offers. This is especially true for small, poorlyconstructed and ventilated dwellings.


27

Box 2.6 Quarrying in Sao Paulo

The small scale mining industry, which surrounds Sao Paulo, Brazil, has a long tradition. With the spread and development ofSao Paulo, the environmentally problematic mining activity has come under stronger scrutiny. When it came time to act, abureaucratic nightmare was discovered. Eighteen government bodies — federal and local — had responsibilities for overseeingthe different aspects of the mining activities in the metropolitan region of Sao Paulo.

Economic and environment authorities responsible for small scale enterprises are separate entities, and co-operation and co-ordination between the different departments proved to be highly problematic. For example, there was a conflict betweenthe land use plan for the city put forward by the government of the state of Sao Paulo, and a similar plan put forward by themunicipal government — i.e., a mining site was legal in one plan, but illegal in the other. Furthermore, the environmentalassessment code designed to cover small scale mining is the same as used to measure the environmental impact of large scaledams and mining productions.

[Werna: 1997, 391-393]

The most contentious issue with home based work is thatit is carried out privately and escapes closer scrutiny. Thefield of research in home based entrepreneurship isgrowing. Hopefully this will lead to new insights intounderstanding and mitigating HBE environmentalproblems.

2.8.2 Local Government and theEnvironmental Standards of SSEs

At the local level, there can be a complete absence ofpolicy, legislation, regulation and administrative machineryregarding the environmental standards of SSEs.Increasingly, the lack of appropriate environmentalmanagement capacity is becoming a source of conflict

between local governments and SSEs. Unable to respondto challenging situations, the tendency is for localgovernments to react in an impulsive fashion.The examples of Sao Paulo [Box 2.6] and Delhi [Box 2.7],although extreme, are indicative of two different areaswhere conflicts are arising more frequently. In the Indianexample, the government decision to close downpolluting SSEs ended up having more negative impactsthan could have been foreseen. In 2000, a similarcrackdown on SSEs led to what was described as themost violent protest in India in recent times. [StatesmanNew Service: 2000] Sections of Delhi were closed downas the protest by workers and entrepreneurs turned intoscattered rioting. Ingenuity and creativity are required tohelp municipal authorities develop the skills and resourcesnecessary to help SSEs master the environmental effects


28

Box. 2.7 Local Indian Government and Polluting SSEs

In Delhi in 1996, small scale industries, employing on average 20 people, were hit by a series of court orders requiring themto take measures to reduce pollution. The results: 1,328 industries were closed down and ordered to move out of Delhi;90,000 units were notified for relocation; and, factories in 28 industrial estates were ordered to participate in setting up centraleffluent treatment plants (CETP). The Delhi Master Plan recommended the closure and relocation from Delhi of all units usingor producing hazardous and noxious products. The process involved relocation and the purchase of vast tracts of land to moveaway from ‘non conforming areas’.

In terms of gains, some reduction in local ambient pollution will have taken place with the closure of these units. Most of theunits dealing in hazardous and toxic raw materials and products were located in very densely populated areas.

On the negative side, estimates are that as many as 125,000 people lost work. Relocating firms had very fixed and negativeviews on the relations between industry and environment. None of the relocating firms expect to upgrade or change thepresent technology to reduce pollution. Any measures taken will be to expand production or to increase productivity of theexisting technology.

Some firms had to install end of pipe pollution abatement equipment. Consequently, they have come to regard environmentalexpenditure as unproductive and unnecessary. Not only are these measures ineffective, as they are operated only for thebenefit of visitors and inspectors, the perception it is generating has serious implications for long term environmentalimprovements.

Given the poisoned atmosphere, simple cost effective alternatives were ignored. The majority of the factory owners who haveapplied for land for relocation generally operate from leased premises or would like to expand their production. Relocationthus provides an opportunity to expand production and increase profit based on the same polluting technology.

The outcome of the present policies are reinforcing trends that work against the development of a more environmentallyeffective and socially acceptable policy. Relevant conclusions are:

1. It is distracting attention from the main sources of urban pollution.2. It is dispersing pollution instead of reducing it.3. It is discouraging SSEs to change to cleaner technology.4. A consequence of pushing clean-up measures is that none of the firms made the link between economic gains and

environmental improvements. Increase in profitability through improved energy use, better material recovery andreduction of waste are non issues.

5. It is ignoring social issues in the name of the environment.6. The judicial orders, while they have created some environmental awareness, have not provided solutions. On the contrary,

they have reinforced trends which could impede and delay the introduction of improved environmental management andgovernance practices.

[Dasgupta:1998, 1-12]

of their economic activities. 2.8.3 The Environment and SSE Recycling Sector

From rag picking to reconditioning appliances, SSEs makea great contribution to maintaining environmentalstandards by finding secondary uses for waste. SSEs areinvolved in primary collection, recovery operations,reclamation, recycling and by-product generation.


29

Battery recycling in old Dhakaemploying women and children.

At right untreated waste from batteryrecycling on a slope leading to a watersource.

[Fernandez: 1997] However, there are recycling sectorswhere the environmental implications are of greatconcern. Battery and plastic recycling are two SSE sectorsthat can operate with minimal or no environmentalprocedures in place. The example of battery recycling inIndia in Box 2.8 provides insight into the possibleenvironmental risks related to recycling.

Why so many SSEs are engaged in unsafe recycling activityis of course a matter of economic survival. As Dasguptapoints out: "banning these activities as manyenvironmentalists wish to, may be environmentallyadvantageous but carries enormous social costs."[Dasgupta: 1997] The answer is to develop appropriate

policies and technologies to deal with the environmentalills of recycling on a small scale. The work of theNetherlands-based WASTE is the sort of effort that mustbe favoured to ensure better SSE recycling practices.WASTE promotes pilot projects and research intorecycling activity by urban SSEs and promotes discussionon the topic through an electronic newsletter. (see:http://www.waste.nl)2.8.4 Environmental Problems in Peri-

Urban Zones

The blurring distinctions between urban, peri-urban andrural is not without problems. As Birley and Lock note,the peri-urban zone can be viewed as a "mosaic of


30

Box 2.8 Battery Recycling in Calcutta, India

The recycling sector employs thousands of workers, directly and indirectly. In one area of Calcutta alone, thereare reported to be 210 battery breaking and lead smelting units. The used batteries are broken down to extractthe lead plates; this lead is then smelted and made into ingots to be sold to industry. The process of lead smeltingis the primary source of air pollution.

Lead extraction process

The plastic shell of the battery is cracked open and the battery plate removed. The wastes generated at thisstage are diluted sulphuric acid and distilled water. The lead plates are then mixed with charcoal and smelted incrude furnaces. The furnace is normally a simple brick structure with four vattis (firing pits). Each vatti has adoor through which it is fired. There are no walls separating the four vattis. This means that opening any onedoor affects the efficiency of all the others. Furthermore, all four are connected to the same chimney stack. Thelead which separates from the slag is collected and made into ingots. The slag is stored until a substantial amounthas built up. It is then resmelted several times for further extraction.

The very crude methods and the outdated technology used give rise to pollution at several points in the process:

• There is a high level of noise when the batteries are broken up.• Sulphuric acid is released when batteries are broken up; this finds its way into drains and the surrounding areas,

leading to land and water contamination.• Sulphur dioxide and carbon monoxide are released during the smelting process.• Lead oxide forms a major part of the suspended particles released and the fine dust is easily carried by the

wind.• Inefficient use of the furnace results in excessive smoke and pressure in the chimney stack, forcing some of the

smoke back into the workplace.• Seepage from the slag stored for resmelting contaminates land and water.

[Dasgupta: 1997, 293-4]

different land uses inhabited by communities of differenteconomic status, in a state of rapid change with a lack ofinfrastructure and a deteriorating environment." [Birleyand Lock: 1998, 89] Moreover, there is a growing conflictover land use priorities. Agricultural land is being convertedto industrial and residential purposes, and long-standingeconomic practices that were once out of sight are nowvery visible and close to residential areas.For example, the following situation involving quarries inSao Paulo, Brazil is very common in many developingcountries where small scale mining and brickmakingpermeates the outskirts of urban centres:

In Sao Paulo at the beginning of the century, manyquarries were situated in the rural periphery of the city;but as Sao Paulo grew, they were progressivelysurrounded by the urban fabric. Now the quarries aretotally within the urbanized area, many of them withinthe core of the metropolis. As a result, there is growingconflict with local residents and government authorities ....Urban quarrying for building materials (can havesignificant environmental implications) as the mining ofaggregates such as sand and clay has been responsiblefor polluting streams, the loss of organic soil, large holes

in the ground, visual pollution, residual coal and conflictsabout the use of land.

[Werna: 1997, 291- 392]

In peri-urban areas, waste is an enormous problem. Onesolution would be to find secondary uses for bothagricultural and industrial wastes. This is already happeningin some peri-urban areas where waste water is beingtreated in fish farming systems. In the meantime, theagriculture being practised is often dependent on highlevels and unsafe use of chemicals. This includes small scalefarmers selling to the urban market. There is a high risk andevidence that industrial contaminants such as heavy metalsare seeping into food production.

[Birley and Lock: 1998]

The transformation of the economies of peri-urban zonescarries strong implications for the well-being of workersand their families. Work patterns are evolving, as are thefrequency and types of diseases. The overall impact,according to Birley and Lock [1998], is a decrease in healthstandards.

2.8.5 The Safety of the Workplace


31

Untreated waste water flowing beside the Ferozepur Road in Pakistan.


32

From peri-urban zones to the heart of the city, oneconstant environmental challenge for SSEs is the safety ofthe workplace. Increasingly, more and more is beinglearned about OHS standards in SSEs. There is no clearidea about how many people are injured or killed as resultof poor OHS standards. Carr-Harris feels the numberwho die in work-related accidents is quite high, citing India

as an example: "If one extrapolates evidence from variousspot studies and population statistics, it is clear that thenumber of people killed due to occupational injurieswould be in the region of 150,000 per year, almost 100times the official statistic." [Carr-Harris: 33] Carr-Harrisalso feels that accidents are much higher within the SSEsector than any other sector. She provides the following

Box 2.8.2 The CIDA-Supported Tannery Children Centre of Kasur

Kasur, with a population of roughly 300,000, is the main tannery centre in Pakistan and recognized as the worst polluter. Thereare roughly 200 tanneries, about 100 of which operate as part of the informal economy. Many of these informal tanneriesoperate from homes where women and children are involved with the potentially hazardous process of sheep hair handling.Over 50,000 people are employed in the tanneries, operating within the urban fringe in three main clusters.

The tanneries have degraded the environmental conditions surrounding Kasur, posing major health hazards to the residents. Theeffluent discharged by these tanneries, with its high chemical and biological pollution load and no drainage, has rendered a bigstretch of fertile land into lakes of stagnant wastewater. A nauseating smell permeates the air and the city's inhabitants sufferfrom eye diseases, skin irritations and gastrointestinal maladies. Lung cancer has also been diagnosed as the cause of death insome cases. A significant percentage of all medical visits in Kasur are related to health problems caused by the tanneries.

The Lahore-basedNGO, SUDHAAR,estimates that 1,600children betweenthe ages of 6-14 areworking in threeclusters. SUDHAARwas taken aback bythe lack of concernshown by inhabitantsfor occupationalhealth standards andthe need for pro-tection against theharmful chemicalsused in the tanneryindustry.

SUDHAAR established the Tannery Children Centre. SUDHAAR began by encouraging children to join the centre to pursueprimary education. Tanners, supervisors and parents were encouraged to send children and younger, non-working children tothe centre. Since opening, enrolment has tripled to over 180 children, with a staff of four teachers and two communitymotivators.

Other than providing education and recreational opportunities, SUDHAAR has held workshops on occupational safety andhealth hazards. The staff counsels the children on problems faced at home, the workplace and in the streets. At the demandof mothers, a basic health programme for children and their families has been set up. A small credit programme has started toexplore the possibility of support to create economic alternatives.

The success of the Tannery Children Centre has inspired three additional centres, supported by different agencies, in other partsof Kasur. Over 600 working children and non-working children are enrolled at these centres.

[Khan and Khan: 1998 / Morishita and ur Rahman: 1999]


33

three examples of SSEs from India that are of particularconcern:1. Food Processing

In Bombay, 51% of the women involved in fish processingwere found to be suffering from fatigue, backache, pain inthe legs and chest congestion. Skin infections, caused bythe bacteria from fish, were also common.

2. Soap Stone, Khadi and Cane/Bamboo Industries

There are more than 40 stone grinding units located onthe outskirts of Udaipur city. Two hundred workers in fiverandomly selected units were subjected to a healthexamination. It was found that more than 20% sufferedfrom respiratory diseases, and more than 6% werecoughing up tuberculosis bacilli sputum duringexaminations.

3. Leather Processing in India

A high incidence of tuberculosis and other respiratoryaliments has been associated with the dust and fumesemitted during leather processing. Contact with sulphide,chlorine dioxide lime and hydrogen sulphide in tannerieshas led to cases of acute toxic poisoning.

[Carr-Harris: 14-15]

Lowenson claims that SSEs face the same workplace OHSchallenges as larger enterprises in terms of physical (noise,heat, dust, electrical), chemical (pesticides, solvents, acids,resins, etc.), mechanical (cutting, grinding and other tools,vehicles), ergonomic (poor working platforms andpositions) and biological (such as animal borne disease), aswell as problems related to the organization of the work.[Lowenson: 1995, 2] What differentiates SSEs from largerenterprises are the often brutal conditions surroundingthe workplace, including inadequate water and sanitationservices. According to Lowenson, the factors underminingSSE health and safety standards are the following:

... low levels of capital, use of primitive tools andtechniques and a tendency to innovate or take shortcutsin production that, while necessary for economic survival,may pose serious hazards to the worker; poor workingconditions, poorly regulated by labour or health andsafety laws and poorly monitored by unions, employers’organizations and the state, as workers, such as those

working for their families are not always under formalcontracts of employment. These problems areparticularly acute in the categories of labour common ininformal and small scale enterprises, such as child,casual, family and female labour; the majority ofsmallholders and a large portion of informal sectorworkers are female, while many small rural and urbanenterprise also employ children ...

[Lowenson: 1995, 2]One of the better documented examples of poor SSEOHS standards is the artisanal sector. A survey ofoccupational illnesses found in traditional crafts indeveloping countries included: lead poisoning in pottersand their families in Mexico and Barbados; lead poisoningin families in Sri Lanka recovering gold and silver fromjeweller's waste, using a molten lead procedure; silicosisand other respiratory diseases in agate workers in India;asthma from carving ivory from elephant tusks in Africa;and, respiratory and ergonomic problems among carpetweavers in India.

[McCann: 1996, 126]

Another disturbing trend identified in the same study isthe use of modern chemicals and processes by artisanalentrepreneurs. "As many as 93 cases of peripheralneuropathy from the use of hexane based adhesives insandal making in Japan; paralysis in 44 apprentice shoemakers in Morocco due to glues containing tri-orthocresylphosphate; lead poisoning in lead battery repair workersand their families in Jamaica: and leg, arm and back painand other occupational health problems in home based,ready made garment workers in India." [McCann: 1996,126] At great risk are children and other family memberswho are inadvertently exposed to safety risks, especiallywith HBEs. There are, for example, reports of familymembers being exposed to hazardous materials broughthome on the clothes of workers.

[McCann: 1996, 126]

SSE workers, entrepreneurs and their family membersusually do not have adequate health care or healthinsurance. They rely more on self-help, traditional healthsectors and primary health care services, whereknowledge and the resources to cope with OHSproblems are poor — i.e., basic capacity to attend toinjuries and make the appropriate diagnosis of moreserious industrial related illnesses.


34

2.9 The SSE Paradox

The inherent difficulty that comes with urban small scaleentrepreneurial activity is that what makes it importantfrom an economic and social standpoint is also whatcreates environmental and health risks. The flexibility,mobility and the absence of laws and regulation may keepmothers closer to children and overhead cost to aminimum, but as has been demonstrated, working in thisfashion can carry enormous safety and health risks. Thefragmentation and lack of formal organization also make itdifficult to provide assistance in areas where there is adefinitive need.

Yet it remains important to distinguish between realenvironmental problems and mere nuisance factors. SSEentrepreneurs, workers and everyone living in closeproximity to SSEs seem to have a much higher toleranceof some of the impositions brought on by SSEs [see, forexample, Gough: 2000]. Care must be taken to identifythose issues that people, entrepreneurs and workers trulyperceive to be problems.


35

2.10 Summary of Key Points

1. SSEs create an interactive and practical relationshipbetween the home, common space andentrepreneurial pursuits. They are a major definingcharacteristic of cities in developing countries.

2. SSEs are an important source of economic vigourand social interaction in poor urban communities.

3. The majority of SSEs are home based, owned andoperated by women, and use low, often obsolete,levels of technology.

4. The percentage of the urban population findingwork in SSEs in developing countries is growing —estimates range between 50% and 75% of theurban economy.

5. There is considerable economic interactionbetween SSEs and LMEs, the former often providingthe latter with products for the production of largergoods.

6. SSEs play a key role in combatting poverty,particularly for women.

7. Using the home as a workplace reduces costs andallows mothers to more easily care for theirchildren, but ‘work’ space tends to have priority over‘living’ space, and health factors may also becomprised. Some forms of HBEs are ill suited to thekind of space offered — e.g., poorly ventilateddwellings.

8. There is generally a spatial logic to the creation ofoutdoor SSEs, which serves both cultural andeconomic factors at play within a community.

9. Although NMVs provide the most mobile,affordable and accessible means of getting aroundfor the poor, many Asian cities are biased against theuse of such vehicles, seeing them as backwards andas causing traffic congestion.

10. There is a significant amount of small scaleentrepreneurial activity in support of NMVs.

11. In peri-urban areas, there can exist a range ofentrepreneurial activity involving the industry,agriculture and service sectors. As this trend

continues, new ways will have to be found to betterintegrate industrial and agricultural activities.

12. Informal settlements offer some important lessonsin housing design that is responsive to peoples’needs. However, there are major issues to beaddressed in terms of health and safety standards,especially related to building materials.

13. SSEs face the same challenges as other sectors interms of local governments not delivering neededservices, plus they often operate underinappropriate regulations and by-laws.Consequently, SSEs generally feel local governmentsdo not have much to offer. Few bother to registeror pay taxes.

14. Environmentally, manufacturing SSEs can do muchharm in poor, under serviced communities, sincethey tend to be major polluters.

15. Increasingly the lack of appropriate environmentalmanagement capacity is causing conflict betweenlocal governments and SSEs. Municipalauthorities need to develop skills and resourcesto help SSEs master the environmental effects oftheir economic activities.

16. SSEs make a key contribution to maintainingenvironmental standards by finding secondaryuses for waste in developing countries (e.g.,battery recycling).

17. SSE workers and family members with healthconcerns usually rely on self-help, traditionalhealing and primary health care, where theknowledge and resources to cope with OHS-related problems are poor.

18. The flexibility, mobility and absence of regulations,inherent to SSEs, have economic advantages, butthere are also significant health and safety risks.The fragmentation and lack of formalorganization within the sector makes it difficult toprovide assistance in areas where there is adefinite need.


37

3.0 Context

It has been said that on given day in any city, anuncountable number of decisions are made byentrepreneurs and workers regarding their respectiveenterprises. [Schoonbrodt: 1995, 65] The overridingfactor that influences their choices is profit. Yet,entrepreneurial choices go beyond the realm ofeconomics to influence the physical environment andsocial fabric of the city. Inversely, entrepreneurial decisionsare determined in part by the surrounding environmentand social imperatives. Location and space and theavailability of resources work with other factors, such asproximity to home and family obligations, to shapedecisions.

Led by a desire to make cities more suited to their reality,people and entrepreneurs have fought against the mono-functionality of original planning models to definecommunities through density and mixed function. Thechallenges and opportunities to promote environmentalchange and improve conditions exist within this context.What is required is more experimentation and awillingness to work with different ideas and concepts topromote change and innovation.

This chapter examines different ideas and strategies forpromoting change and innovation from the perspective ofunderstanding when and how to intervene. The ability ofurban SSEs to respond to environmental challenges andopportunities must and can be raised to another level ofactivity and effectiveness. In short, an entrepreneurialspirit must be created where good environmentalmanagement practices become more intentional, and areshaped by the internal economic processes and networksfound within cities. Beginning with a discussion regardingthe role of participation, this chapter will explore thecircumstances under which institutional guidance,

knowledge and resources can help achieve the desiredentrepreneurial spirit.

3.1 The Participation of Entrepreneurs and Workers

Over the past few years, there has been a profoundreconfirmation of the importance of participatorydevelopment. In all types of project activity, developmentpractitioners and government authorities are beingchallenged to involve stakeholders in a significant mannerin the projects intended for their benefit. A participatoryapproach requires more time and planning, but holds thepromise, if carried out correctly, of greater success insecuring the long- term commitment of stakeholders.

Participatory development implies placing considerablefaith in people to articulate problems, and to identify andimplement solutions. This can be very intimidating forpeople, such as local government authorities, who mayfeel their authority and expertise is threatened. [Pallen:1997b] This is especially true if local authorities have arelationship with entrepreneurs that is alreadyconfrontational.

There is growing expertise in the field of participatorypractices related to project planning, implementation andmonitoring. Local expertise can be found in all developingcountries. New participatory methodologies includemany for use specifically in urban centres. [IIED: 1994] InIndia, UNICEF and the National Institute of Urban Affairsdesigned urban participatory tools suited to the Indianurban context. The ILO's WISE Programme [see Chapter5], and recent developments in the field of PRA [see Box3.1], related to micro enterprise, are making it easier toengage entrepreneurs and workers in a more meaningfulway.

Chapter ThreeFacilitating Innovation and Opportunity — The Environmentand Entrepreneurship in Cities


38

Box. 3.1 Using PRA with Micro Enterprises in Eritrea

Participatory Rural Appraisal (PRA) is a general term describing a collection of techniques designed to facilitate the participationof people in projects intended for their own benefit. In Eritrea, PRA techniques were developed to help sometimes illiterateclients work out and forecast their own cash flows and identify production bottlenecks. While PRA tools tend to focus ongroups of people, micro entrepreneurship is individual.

Southern Zone Savings and Credit Scheme decided in 1997 to find new ways to increase the participation in their businesssupport programmes. PRA methods were developed on two levels: first, in relation to feasibility studies of the economy of theindividual household. Second, methods were tried out in relation to social targeting and impact monitoring by villagecommunities. A methodology was developed to analyze both the household economy and the business plan of a clienthousehold. The methods takes into account that many clients are illiterate and innumerate but do their planning by mentalarithmetic. The methodology received positive feedback from clients.

[Sorensen: 1998, 40-48]

Although profit will always be the key motivation forworkers and entrepreneurs, there are other factors thatcan influence their outlook. Entrepreneurs and workersare also community and family members and parents. Assuch, they can be expected to have different concerns andpriorities that can factor into their decision to participate.Entrepreneurs and workers can show enormous ingenuityand resourcefulness in coping with day-to-day struggles.Thoughtful and creative participatory practices couldbring these instincts and experience into a more proactiverealm of problem solving.

Participatory methods can be used to approachentrepreneurs and workers on both an individual andcollective basis. It is highly possible that entrepreneurswould have a collective interest in tackling a particularproblem — such as community housing standards, orwater and sanitation services. This was certainly the casein Viswas Nager in East Delhi, where local SSE associationsworked with authorities to improve infrastructure, andbring water and sanitation services to the settlement.

[Benjamin: 1991]

There are often existing networks and associations ofenterprises that can facilitate collective participation.Many of these associations and networks are informal. Itmay also be necessary to create new networks, based oncommon interests. Whether working with existingnetworks, or creating new ones, self-direction must be atthe heart of all collaboration.

3.2 The Participation of Women

Given the prominence of women in urban, small scaleentrepreneurial activity, the importance of understandinghow women view matters cannot be stressed enough. Aspointed out in Stren, "women's requirements for land andhousing, the structure of households and families,women's responses to urbanization, their ways of earningincome, and their access to services" are unique. [Strened.: 1994, 322] Their role as mothers forces them to seeand interact with their environment in a very differentmanner from men. Their overriding concern to maintainand secure healthy environments for family membersand, in some cases, other community members makeswomen more receptive to non-economic ideas andobjectives.

3.3 The Importance of Starting Small

A study on innovations for the improvement of the urbanenvironment, undertaken by the European Foundation forthe Improvement of Living and Working Conditions,revealed that micro projects in the urban sector can payenormous dividends with an initial low capital investment,provided the projects have been well planned. [1996, 9-14] These micro projects worked well because, ratherthan trying to change a system, they develop from anexisting one. This is similar to the success of small scaleNGO activity in developing countries:


39

Integrating development work into existing structuresand systems and in particular governments structurescan pay rich rewards in terms of impact, replication andsustainability providing the conditions of integration areright ... and ... are more likely to be successful at scalingup if they do so through the planned multiplication ofmicro level inputs rather than through a process ofdesigning and implementing macro level projects.

[Mackie, in Edwards and Hulme: 1992, 70]

In a field where little collective experience and expertisehas been acquired, the emphasis must be on activitieswhere excessive risks are avoided. The smaller theintervention, the greater the control that can be exercised.Micro projects also play to the strengths of NGOs,community groups, enterprise associations and othersmaller organizations — the groups most likely to make acritical difference.

The adherence to the principal of starting small isespecially paramount when technology is involved. Overthe years, the question of technological appropriatenesshas been one of the most difficult challenges fordevelopment practitioners. For this reason, developmentorganizations promoting technological solutions nowspend more time on planning and working with end users,to help ensure successful adaptation.

Once a product, technology or process is proven to bepractical, financially viable and socially acceptable, there isno reason why it cannot be disseminated more broadly.Limited interventions can grow, as was the case of the Jikoand Diambar stoves in East Africa and Senegal, whereenergy efficient stove models became widely popular [seePallen: 1997a, 21]. Still one has to be realistic about howmuch can be accomplished with a micro project:

There are two particular issues here for micro projects.First, there is a danger that we overstate thetransferability of micro projects and especially the microelements of larger projects. Both micro projects andmicro elements benefits from the synergy they developwith their surroundings. They are, in other words,effective because of the particular relationships andconditions within which they are embedded ... The wholeis very often greater that the sum of the parts and unless

we are careful we can exaggerate the role of particular‘micro bits’.[European Foundation for the Improvement of Living

and Working Conditions: 1996, 58]

3.4 Improvisation, Innovation and Imitation

There appear to be three economic conditions that occurnaturally in the economic milieu of SSEs — improvisation,innovation and imitation — that could help support goodideas, technologies and products.

3.4.1 Improvisation

The renowned urban specialist, Jane Jacobs, felt that oneof the key dynamics in urban economic activity is thepractice of improvising:

... the practice of improvising fosters a state of mindessential to all economic development ... no matter whatstage development has reached the practice ofimprovising, in itself, fosters delight in pulling it offsuccessfully ... invention, practical problem solving,improvisation and innovation are all part and parcel ofone another ... development is a process of continuallyimprovising in a context that makes injectingimprovisation into everyday economic life feasible.

[Jacobs: 1985 Vintage Books edition, 149-150]

Schoonbrodt sees improvisation as the engine ofeconomic development and defines the practice asfollows: "improvising, which guides behaviour and does soconstantly ... improvisation concerning both products andindustrial methods, the aim being to imitate existingproducts whilst cutting their production costs ... Substitutematerials, inexpensive energy sources ..."

[Schoonbrodt, 1995, 57]

Whether in the world of music or industry, improvisationrequires a mastery of a basic set of skills and knowledgethat can be called upon to achieve special ends. In theworld of urban SSEs, this is most often seen as a copingmechanism but it is also a skill. The world of SSEs is onewhere to make ends meet the skill of improvisationbecomes paramount. Lowenson [1995] is critical ofimprovisation in the SSE milieu, seeing it simply as an act


40

of cutting corners, which leads to lapses in workplacesafety. This is probably true to some extent. However,improvisation combined with other skills can lead topositive refinements in both products and productiontechniques [see King: 1996].

3.4.2 Imitation

Very close to improvisation is the practice of imitation. Itis a "shortcut, an economic borrowing." [Jacobs, inEuropean Foundation for the Improvement of Living andWorking Conditions: 1996, 6] Imitation is not limitedsimply to products. It can apply to production processesand technologies. Imitation within the SSE sector iswidespread, making it realistic to expect that goodenvironmental practices and technologies could beimitated widely. The challenge is to find those technologiesand practices that have appeal, and spread their use. Kingprovides the example of the metalworking capacity in theJua Kali informal sector of Kenya to demonstrate theinherent ability of enterprises on the margins to evolvethrough imitation:

... (the) spread of basic metalworking technologies issomething we have termed technological confidence.This is not so much based on science or technologyeducation in schools, but rather to be a kind of can-domentality acquired over time both in the formal sectorby those who then strike out on their own, as well as bythose who develop it entirely within the informal sector.What is noticeable, however, is how rapidly a particularsmall lead in technology by one Jua Kali entrepreneurseems to be undermined by the speed with which it iscopied by others. This points to a high degree ofcompetition amongst Jua Kali with similar levels oftechnology.

[King: 1996, 418]

3.4.3 Innovation

Innovation is very much an integral part of the makeup ofcities, a by-product of a highly vibrant milieu. How muchinnovation takes place in the SSE sector in developingcountries is a matter of debate. Some observers feel thatthe SSE sector does more imitating and improvising thaninventing. Manu [1998] points out that although the SSEsector has a good record of innovation in the rest of theworld, this is not necessarily true in Africa. Others, such

as King [1996], feel that innovation is very much presentin the SSE sector. If innovation has been occurring in theSSE sector, it has done so without support for researchand promotion. The budget worldwide for research andsupport in the SSE sector is but 1% of all the resourcesprovided to business.

[Manu: 1998]

Innovation can solve both simple problems and highlycomplex ones. Even simple innovations have the potentialto solve both: "Innovations have to address complex crossdisciplinary, lateral and synthetic realities, but they don'thave to be complex." [European Foundation for theImprovement of Living and Working Conditions: 1996, 6]Moreover, innovation in support of better environmentalpractices can come in many guises. In addition totechnological advances, there can be economic, social andpolitical innovation that can positively influence theoperations of SSEs.

3.5 Promoting More ResponsiveMunicipal Government

The movement towards democratic reform anddecentralization, taking hold in many developing countries,could not be more timely. Entrepreneurs, and theirrespective associations, NGOs and development agencies,will be hard pressed to improve environmental standardsif local governments are unable to participate. Reformand decentralization must establish more flexible andconstructive legal systems related to small scaleentrepreneurship. Local governments should beencouraged to experiment beyond traditional institutionalboundaries, and to think about how SSEs can be betterassimilated into urban planning initiatives. Moreover,structural innovations are needed to overcome theinflexibility and inadequacy of local bureaucracies.

Yet, it is not essential to wait until local governments aretransformed to begin working with municipalities. Thereis a lot of room to make improvements in the short termon both a pragmatic and strategic basis. A first step wouldbe to begin working with a select number of municipalitiesto correct any malaise existing between governmentofficials and the SSE sector. As Stren points out,development agencies changed their attitude towards theSSE sector in the 1970s when it was recognized that thesector has many attractive qualities, such as "adaptability,


41

A realistic examination is also needed regarding all localgovernment departments, in terms of their relationship tosmall scale enterprise. If the majority of people in citiesend up working in the SSE sector, does it not seemreasonable that more emphasis be placed on preparingthem to have the skills to excel and improve conditions inthis economic sector? Vocational training could bereinforced to correspond with what is being learnedinformally on the job. New approaches and institutionalarrangements could be established to reach out to, train

and educate SSE workers and entrepreneurs inoccupational health and safety practices.

Similarly, primary health care workers need more trainingin basic recognition and treatment of occupationaldiseases. In the United States, the Appalachian Center forEconomic Networks has been working with smallenterprises and local technical colleges to provide healthand safety courses for a network of ‘micro firms’.[ACEnet: 1996] This is one direction urban health services

Box 3.2 Creative Administration in Sao Pablo

The legal and administrative labyrinth meant to oversee quarrying in Sao Pablo was stifling attempts to ensure environmentalstandards. The Quarry Group was created to deal with urban quarrying issues. This group, taking a proactive role, has helpedcurb existing conflicts between authorities, the communities and miners. The approach is innovative, at least in the local context.Quarrying group members go to the sites of conflict and work jointly with the community and miners, with the aim of raisingthe awareness of everyone involved about each others' standpoints, and providing an opportunity to discuss solutions together.

[Werna: 1997]

Box 3.3 Participatory Planning, Housing and Municipal Reform in Lublin, Poland

In 1990, a process was undertaken to revitalize the neighbourhoods of Lublin, Poland. Lublin's Urban Planning Unit launched a‘participatory planning process’ to involve community members in the rehabilitation of their neighbourhoods. The city and localcommunities developed a plan for sharing the cost of projects to rehabilitate the local infrastructure in two pilot areas. A keyachievement in formulating planning regulations was to promote the development of micro enterprises and home basedenterprises, and expedite permitting procedures to stimulate housing renovation and expansion. Within two years, 137 houseswere renovated and 50 new buildings constructed; 55 micro enterprises were established in renovated buildings, employing 120people.

[Serageldin and Kipta: 1996, 10]

ambition and the willingness to take risks in both bad andgood times."

[Stren, 1992a, 82]

There is a blanket criticism that local governments are setin their ways. In innovative pilot projects, the ILO has hadsuccess working with municipalities in both Africa and Asiato overcome the hostility between municipal authoritiesand local informal entrepreneurs [see Peters-Berries:1996] The key appears to be to establish lines ofcommunication between the two sides. Eventually acommon basis of understanding may emerge, which

allows local authorities to focus more on the positivecontribution SSEs make to cities, and not just on theperceived chaos and disorganization.

More and more local governments are experimentingwith new forms of enterprise legislation in support ofindustrial parks and economic trade zones. This documenthighlights a number of pilot projects demonstrating howlocal governments are playing constructive roles inimproving conditions for SSEs. Boxes 3.2 and 3.3 illustratehow changes in administrative practices can facilitateimprovements in environmental standards.


42

could take. New approaches could be established in suchdiverse fields as architecture, housing, engineering andurban planning to support small scale entrepreneurialactivity.

Finally, much more must be expected out of departmentsof environment. They need the resources and expertiseto fulfill broader mandates, to not only enforce standards,but also to take on more of an advocacy role by helpingenvironmentally troublesome SSEs make the shift togreener forms of production.

By embracing and working with small scaleentrepreneurship, local authorities can benefit from theenergy and creativity existing in the sector. This will alsoraise the possibility of new sources of revenues to pay forservices and infrastructure. Tipple provides the exampleof building more appropriate dwellings for home basedentrepreneurship and the opportunities for revenuegeneration:

Where commercial activity is encouraged on residentialplots, the potential arises for cross subsidy. Forexample, corner plots where main routes meet can beparticularly highly priced because, upon development,they would be well suited to commercial activity.

[Tipple: 1993, 535]

3.6 Informal Regulation

As noted earlier, there is an incredible degree of toleranceon the part of neighbours and family members of thenoises and other inconveniences created by SSEs. Yet,there are limits to this, and it is often informal forms ofregulation that keep SSE activity in line with communityexpectation. Gough describes the situation in oneneighbourhood in Accra, Ghana:

Although there is widespread acceptance of theoperation of economic enterprises in residentialneighbourhoods, the HBE operators are not entirely freeto operate when or where they chose. They facepotential control by local government officials ...(However) the more informal modes of control of homebased enterprises appear to be more extensive than theofficial channels. The greatest degree of control is(exerted) by landlords who have the power to preventtheir tenants from conducting certain activities on their

premises. Although many landlords do not restrict theirtenants in this manner, some refuse their tenantspermission to operate certain enterprises. Otherresidents of the house or of the neighbourhood at timesalso exert an influence over the operation of homebased enterprises. Although they do not have the samedegree of power as a landlord, at times their complaintslead to a change in either the location or the practicesof the operators ... the extent of informal mechanisms ofcontrol of home based enterprises is very clear.

[Gough: 2000, 12]

A study in the city of Surabaya, Indonesia, came to similarconclusions:

It is instructive to see how social constraints limit thetype of economic enterprises introduced, therebyavoiding the most potentially problematic and conflictivecircumstances. This is all done without reference toexternal, official agencies or norms dictating orregulating the type of activity deemed appropriate.

[Bishop and Kellet: 2000, 8]

Another factor that could be brought into play is familyrelationships. This is true both in terms of regulating SSEs,but also for more proactive endeavours. In the studynoted above of Surabaya, Indonesia, and another in SantaMarta, Colombia, it is revealed to what extent streets and,indeed, entire neighbourhoods can be populated byextended family members. In Santa Marta: "Thesettlements are not populated by individual householdsbut dense networks of interrelated families. Over 70% ofhouseholds in the informal settlements of Once deNoviembre and Nueva Columbia have other relativesliving in one or both settlements." [Kellet: 2000, 7] Wherefamily relationships permeate a neighbourhood, it couldprovide a unique foundation for addressing any number ofproblems facing the community.

In Ciudad Juárez, Mexico, a project attempted to convertpolluting small scale brickmakers from dirty fuel sourcesto propane gas. Although the project had limited success,one achievement was the effective use of informalregulation, which saw trade unions and communitymembers living in close proximity to the kilns enforcingstandards:


43

Trade unions and neighbourhood associations wereconvinced to support the propane initiative and played acentral role in implementing it. In certain backyards, theycreated rules regarding which fuels were permissible,monitored compliance, and imposed sanctions onviolators. In addition, to enforce a ban on burning debris(as a fuel source), the municipal environmental authorityrelied on citizen complaints to identify kilns that were notin compliance.

[Blackman: 2000, 12]

3.7 NGO Involvement in the SSE Sector

Two studies supported by CIDA identified another majorproblem related to improving the environmentalstandards of SSEs — the near absence of NGOs workingin the SSE sector on environmental issues. Even in thefield of workplace safety, where the interests of womenand children are paramount, there are relatively few activeNGOs. The exceptions are NGOs working on childworker rights, and to a lesser extent home based workersin the textile industry. There are also other NGOsaddressing the extreme environmental impacts of highlypolluting SSEs, such as the small scale tanneries describedin the previous chapter in Kashur, Pakistan.

Given the unique circumstances under which SSEsoperate, there can be substantial barriers to anyone beingable to provide effective assistance, other than those witha strong understanding of the entrepreneurial milieu andthe communities in which SSEs are active. For this reasonit would be advantageous to partner with localintermediators, such as NGOs and community groups. Todo this, NGOs and community groups must be betterinformed about small scale entrepreneurship and issuesrelating to the environment. Local government weaknesscould then be partially overcome by a more capableNGO sector that would have an easier relationship withentrepreneurs and their associations than local authorities.

3.8 Land Tenure

When Chilean development specialist Hernando de Sotowas asked what needed to be done to control thenegative environmental impact of the informal sector oncities, his answer was land tenure. De Soto felt, as manydo, that unless people feel they have a long term interestin maintaining a property or a piece of land, they will notdo so. [Fernandez-Morera: 1999,7] The argument goes

that land tenure would encourage people and families tomake more concerted efforts to improve, not only theirliving conditions, but their communities as well.

Given the vast number of people affected by this issue,one would expect there would be more examples ofcreative solutions to land tenure problems to providesome guidance. There are, however, very few goodexamples. Perhaps the most positive finding has been thatpeople are willing to make improvements in communitieseven without absolute land tenure. Case studiesdemonstrate that a simple guarantee on the part of localauthorities to leave informal settlers alone for a year ormore will result in community improvements. [Payne:1997] This discovery bodes well for finding moreintermediate solutions to any number of assortedproblems found in informal settlements that, historically,have been blocked by the lack of land tenure.

3.9 Enterprise Incubation andExtension Programmes

Enterprise incubation, the practice of providing technicalsupport and services to enterprises has a long history indeveloping countries. Incubation programmes work fromthe principle that while individual firms may not be able toafford technological research and consultancy services,groups of small enterprises can contract services from anynumber of sources. A joint UNDP/IADB/UNIDO reviewof incubator programmes in developing countriesrevealed that: "They can be a cost effective instrument inthe creation of new enterprises and in the developmentof jobs. Over 1,500 incubator programmes were knownto be in operation throughout the world in 1996."[Lalkaka and Bishop: 1996,VII-VIII] Extension programmesattempt to offer similar services to incubationprogrammes, often by establishing a permanent physicalbase within reach of entrepreneurs.

Historically, there has been difficulty in reaching out tosmall and micro entrepreneurs, although the situation withsmall scale entrepreneurs is not as desperate as with themicro/informal sector. Part of the problem has been thatenterprise incubation programmes are often sponsoredby the public sector, "the sector that is least in a positionto provide effective help." [Stren: 1992a, 64] Wilsonprovides an outline of what he feels is necessary to makean extension programme successful:


44

... programmes could be established on a sectoral basiswhere there is the basis of a shared culture betweenfirms ... within, a given sector, an extension programmeshould be able to map reasonably accurately firms’needs, but the key issue here is the extent to whichextension workers are themselves prepared to learn thecharacteristics of the enterprises they are helping. Suchlearning would appear to be essential if the extensionworker is to recognize the unique technological capabilityrequirements of different enterprises and to build upon

that which already exists. In other words, extensionsupport needs to start from what an individualenterprise already knows and does, rather than what itdoes not know to do, and be prepared to act as aparticipatory facilitator in the technological learningprocess. Then, the potential exists to develop capacitiesfor incremental learning that both optimizes the day-to-day capability and takes the firm beyond it.

[Wilson: 1996, 498]

Box: 3.4 An Experiment in Support of Small Urban Producers in Benin

The Small Urban Producers Programme (SUPP) used five principles in a participatory support strategy for smallhandicrafts producers, derived from an initial experiment carried out between 1982 and 1989 in 15 towns in Mali,Rwanda and Togo. Namely:

1. Respect for local creativity and initiative.2. Minimization of recipients’ dependence on external factors, by mobilizing local resources.3. Consolidation of the social cohesion of target groups by encouraging self-organization and creative

experimentation, even at the risk of error.4. Promotion of broader negotiations with existing institutions by emphasizing consultation, rather than heavy

handed control.5. Promotion of networks between grassroots organizations, sharing a spirit of solidarity and self-reliant

development, with a view to strengthening relations among them.

SUPP worked with the Government of Benin to refine methods used in enhancing the capacity of small producersto develop group strategies and set up cost-effective, group-based production support services. The methodcombines: a financial instrument (mutual savings and loan associations); a technical and production promotioninstrument (common facilities workshops); a marketing strategy (market development and diversification); and,above all, the promotion of independent socio-occupational federations.

The previous projects taught that direct micro economic support to small producers can assist the development ofsustainable and replicable structures only if accompanied by macro economic and institutional measures to fostermicro enterprises and create a climate conducive to their work. SUPP derives from a concept of participatorydevelopment in which three conditions must be met for external assistance to have an internal catalytic effect:

1. Gradual mobilization of the participants’ own financial, technical and human resources with a view to their self-reliance.

2. Organization of participation aimed at stimulating the recipients’ desire for improvement and affirming theirsocial identity.

3. Institutional recognition and representation of participants, enabling them to negotiate, assert their rights andcope with the constraints inherent in their unfavourable economic and institutional environments.

The enterprises, therefore, co-operate through flexible and loose networks to establish contact and supportstructures controlled by the producers themselves. The approach combines the flexibility of micro enterprises withthe economies of scale to be gained from common support facilities.

[Maldonado: 1993]


45

To make enterprise incubation and extensionsprogrammes effective, it is important to avoid simplyscaling down or transferring technology and managementtechniques used in larger enterprises. New managerialoptions and training services must be developed for SSEsand their respective entrepreneurial milieu. The examplein Box 3.4, regarding small scale producers from Benin, isimportant in that it shows how government, creativefinancing and participation can be brought together in aninnovative fashion. Finally, SSEs need assistance in makingimprovements in product design, productivity, quality,management and marketing. Clearly this is closer to theirpriorities than environmental management. However,working on these issues can also open the door tointroducing better environmental practices.

3.10 Financing

While the health risk of bad water, poor sanitation andthe like have not been forgotten, it is no longerconventional to treat them as complex environmentalproblems requiring better science, innovative responsesand social mobilization. Rather, by and large, they areviewed as problems whose solutions are known, but forwhich the requisite finances are not always available, towhich insufficient priority is given, or which require asomewhat different mix of public and private sectorinvolvement.

[McGranaham et al., in Pugh: 1996, 110]

The above reference to urban environmental problemsand the poor touches on the all too important question

of the availability of financial resources. Although thereexists room to undertake activities at little or no cost,there is a need for financial institutions and services thatentrepreneurs can trust. Such financial resources shouldalso be located in the communities where the SSEsoperate.

The practice of micro finance, whereby entrepreneursobtain loans for small amounts, is growing in developingcountries. Previously a rural phenomena, micro financeservices are becoming more established in cities. Microfinance has become an effective tool in generatingemployment opportunities for entrepreneurs andworkers [see Khander et al.: 1998]. Not only are theremore and more organizations with the main objective oflending money to poor entrepreneurs, there are also agrowing number of municipalities, in countries such asIndia and Peru [see Box 3.5], experimenting with microfinance as a means to providing infrastructure services andtransportation for the poor.

Housing is another area where innovative financingschemes have been developed to facilitate the upgrading,renovation and extensions of the homes of the poor. AsMitlin [1997, 46] points out: "There are numerous newmodels for providing housing finance to low incomehouseholds that have been developed over the last 15years. They have been developed to support a large scaleprocess of incremental housing development through loanfinance. Many of these programmes have secured highrepayment rates." Similarly, micro finance schemes arebeing used to facilitate positive new developments in the

Box 3:5 Government Support for Bicycling in Lima, Peru

In some places, the greatest obstacle to cycling is also the most basic — lack of a bicycle. In many developing countries, bikes maybe absent from the urban landscape because they can cost a month's salary or more. The municipal government of Lima, Peru, hasaddressed this issue by setting up a micro credit programme to facilitate bike purchases. Twelve-month loans of $100 have beenmade available to low income citizens. The city is capitalizing on people's desire to bike. Research has shown that two-thirds of menin the project area, and more than half of the women, would cycle if they had access to a bike. Together with the expansion ofbikeways, the loan programme is part of the city's declared effort to increase the share of trips made by non- motorized vehicles from2 to 10 percent.

[Gardner: 1998, 20]


46

water and sanitation field that call for a more prominentrole for low income urban communities in designing,delivering and maintaining community water andsanitation services. [see Cotton et al.: 1998]

The experience of micro finance in support of microenterprises, housing construction and renovation, andwater and sanitation for the poor demonstrates that thereare options for being creative in terms of theenvironment. There is a growing and varied communitylevel financial expertise that can now be called upon in allcountries. It is also equally important to keep in mind thatthe urban poor are much more financially capable thanpeople give them credit for :

The living environments of low-income settlements canbe substantially improved at relatively modest percapita cost through the provision of basic infrastructureand services. The cost constraints of making availablesuch facilities seem to be overstated, while thewillingness and ability of poorer groups to pay forimproved services seems to be underestimated.

[Lee Yok-Shiu: 1998, 993]

Another avenue that needs to be explored is how SSEassociations and networks can be approached to financeneighbourhood improvements and obtain services thatbenefit not only their industries, but the communities inwhich they operate as well.


1. Never lose sight of the importance of theparticipation of entrepreneurs and workers in allactivities.

2. Because women are a majority of urban small scaleentrepreneurs, take the necessary time to understandtheir opinions and value their participation.

3. Micro projects in the urban sector can pay enormousdividends with an initial low capital investment. Forthis reason, place a greater emphasis on well plannedmicro interventions.

4. Understand the context in which you are working.The density, mixed function of communities andproximity of SSEs to each other are but a few of thefactors that should be understood in developingenvironmental improvement strategies.

5. Improvisation, innovation and imitation are threeelements of SSE activity that could facilitate thepromotion of new ideas and technologies.Understand how they can be used.

6. Embrace diversity and experimentation.

7. Encourage entrepreneurs and workers to takeresponsibility for project activities.

8. Consider promoting the use of informal regulation,such as peer and family pressure, to prodentrepreneurs into better environmental practices.

9. Explore the area of enterprise incubation and othertraditional enterprise development tools todetermine how environmental and entrepreneurialgains can be made.

10. Ensure that appropriate financial services andresources are available. This implies that servicesshould be close to where SSEs operate and that theyare managed by organizations which have the trust ofentrepreneurs.

11. Work with local governments to make selectivechanges in local laws and by-laws for the benefit ofthe environment, workplace safety standards andeconomic production.

12. Examine how local non-environmental and economicinstitutions can be mandated to facilitate change.

13. If land tenure is an issue, consider intermediatesolutions that allow a degree of security for occupantsto invest in improvements to their homes andcommunities.

14. If necessary, study the growing field of micro financeto determine the appropriate financial services toassist entrepreneurs and support their attempts toimprove environmental conditions.


47


49

4.0 Introduction

There are countless little and not so little ways in whichcities could be made better places by improving SSEworkplace and environmental standards. The case studiesand ideas presented in the remaining chaptersdemonstrate that once the SSE sector becomes aplanning variable, previously unthought of options arecreated for addressing long-standing problems. Housingdevelopments, streets, public spaces and entireneighbourhoods could take on a variety of different formsin light of better factoring in the needs of SSEs. Thischapter begins with a look at potential changes in thetransportation sector.

4.1 Transportation

In San Salvador, the local distributor for Pepsi foundthat a bicycle and trailer could deliver 900 cases ofsoda per month — as many as the previous deliveryvehicle, a 5-ton truck, but at a fraction of the expense.The bicycle proved well suited to deliver quickly to thenumerous and closely spaced delivery points (smallshops and homes that stock a few items for sale toneighbours). Similarly, the experience of the largestindustrial bakery in Bogotá, which replaced 200delivery trucks with 800 tricycles a few years ago —a move that substantially lowered the cost of deliveriesto its 22,000 daily customers.

[Gardner: 1998, 18-19]

Chapter Four Redesigning Communities


50

The level of technology advancement in relation tobicycles has remained, by and large, fixed for generationsin bicycle-orientated countries such as China [seeNewton: 1993]. Yet in North America, there has beensignificant improvements in bicycle technology in terms ofcomponents, wheels, and the weight and durability offrames. There is also a growing use of various trailer and

cargo technologies. In Canada, one cargo bike businesshas secured a contract with the University of BritishColombia to furnish the university with the necessarybikes to make the transition to an automobile freecampus. One of the cargo bikes is reputed to be able totransport a mobile home [see www.bikecartage.com].

The experience of Pepsi and the industrial baker in Bogotáare reflective of the type of practical and realisticapproaches to urban transportation that must beencouraged and accommodated. Simple adjustments canbe made in the design of roads, streets and alleys to allowNMVs to circulate more securely and effectively. This cancome in the form of separate lanes or pathways for NMVsor shared routes, where as the World Bank suggests,adjustments are made in terms of speed, and where andhow motorized and non-motorized modes link.

[World Bank: 1995]

In Asian cities, such as Shanghai, Tokyo, Dhaka, Hanoi,Chiang Mai, Kanpur and Surabaya, exclusive NMV routesare found to varying degrees in the shape of lanes,pathways and parking areas that have been designated forNMV use. [World Bank: 1995] In Box 4.1, the success ofthe city of Pune, India, in developing a network of bicycleand pedestrians paths is described. Pune demonstrateshow the addition of a well planned lane or pathway canbe highly effective and contribute to increased NMV use.

In those parts of town where SSE activity is significant, apragmatic approach to transportation is required. Theproof that this approach will work is found in settlementssuch as Viswas Nager in East Delhi, where thetransportation of goods by cycle-rickshaws facilitated thegrowth and establishment of one of the key manufacturingcentres in India. The city of Lima, Peru, has also proventhis is possible [see Box 4.2]. Although in Lima the aimwas to transport workers from informal settlements totheir place of work, how difficult could it be to design non-motorized transport systems facilitating the movement ofworkers, goods and services within a community?

In addition to improvements in transportation routes,more attention must be paid to the quality and capabilitiesof NMVs and certain forms of motorized vehicles. In thecase of NMVs, the objective must be to makeimprovements in speed, durability and capacity totransport goods. The technologies related to bicycles andcarts are not complicated, and there is considerable roomto innovate and make improvements.

Box 4.1 Sustainable Transport in Pune, India

In India, the city of Pune and the state Government of Maharashtra, working with the World Bank, developed a transportationsystem designed to provide safe, quick and easy routes for pedestrians and non-motorized vehicles between residential areas andthe city centre. The project aimed to improve the efficient running of essential motor vehicles on existing roads, by removingconflicts with bicycles and pedestrians. Pedestrians, cyclists and bicycle rickshaws had been accounting for 85% of all trafficcasualties, resulting in five deaths a week.

A network of bicycle/pedestrian lanes and specially designated overpasses and underpasses has been created. It is estimated that46% of cycle trips will be diverted onto the new network, leading to a substantial reduction in accidents. In a city where eachhome owns a bicycle, and another 50,000 are available for hire, the project contributed to increased bicycle ownership. Accidentsare decreasing and traffic on the main routes are moving at higher speeds. The first phase of the project was completed in 1993,at a cost of US$ 2.3 million.

[Hathway: 1994/95]


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Box 4.2 Bikeways Come to Lima's Mean Streets: Innovative Transport for LowIncome

Communities

Over 1,350 people a year are killed by motor vehicles in Lima, and over 70% of the victims are bicyclists or pedestrians. Recently,the mayor's office of Lima launched a plan to increase bicycle use, from a current level of 2% to 10% of all trips: by building 86kilometres of bike paths; by making low interest loans available to help low income families buy bicycles; and, by promoting bicycleuse [see Box 3.5]. The main artery of the bikeway network joins low income areas in the Northern Cone of Lima with theimportant urban industrial zone, where nearly 9,000 enterprises employ over 70,000 people. When completed, there will be 51kilometres of cycle ways and 35 kilometres of bike paths on reconditioned service roads. The people in this area live within sixkilometres of their workplace, a distance ideal for bike commuting, and are poorly served by expensive and irregular public transitand para-transit services. Similar projects are planned for the Peruvian cities of Cuzco and Arequipa.

[Peters: 1997]

Cargo carrying bicyclesin Jaipur, India.


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There is an attitude that only the rich benefit fromenvironmental improvements. In the case of small scalemotorized vehicles, this generalization could not befurther from the truth. Moreover, the Nepali experiencewith non polluting taxis is one of the rare examples ofsuccessful enforcement of environmental standards in theSSE sector. The factors contributing to its success were anextensive test period, donor support, and strong politicaland public will to address the problem.

Elsewhere in South Asia, CIDA, in collaboration withEnvironment Canada, have a number of pilot projects atvarious stages of development related to the conversionof two stroke, three wheel auto-rickshaws to compressednatural gas (CNG). Natural Resources Canada issupporting an initiative by a Canadian entrepreneur topromote motorcycles that operate with alternative fuels

utilizing refillable energy packs. Box 4.4 looks at otherinitiatives to improve the environmental performance ofsmall vehicles, outlining two fundamentally differentattempts to solve the same problem. The contrast in thetwo examples provides a sense of what the future couldhold.

4.2 Facilitating Sustainable Home BasedEnterprise

Given the popularity of, and economic need for, homebased entrepreneurship, and the ongoing housing crisisfacing cities throughout the developing world, this wouldappear to be an area where significant developmentsshould take place. New housing models need to beestablished that recognize and encourage bettercoexistence between economic and domestic activities.

Greater effort should be made to understand how thetechnology being applied to bicycles, carts and trailerstoday can be adapted for practical applications for urbantransport in poor communities — for example, as theInstitute for Transportation and Development Policy isdoing in Africa and Haiti [see Box 4.3]. The IntermediateTechnology Development Group in England is anotherorganization that has made improving the performance oftrailers for work purposes in rural areas a priority.

Given the pollution problem of small motorized vehicles,stronger attempt must be made to promote less pollutingforms of transport. The major benefit of non-polluting,small sized vehicles, as opposed to the polluting ones that

are in widespread use in urban centres, is clear — ahealthier and more agreeable environment. In Nepal,Swiss development assistance supported the creation of afleet of mini buses, which run on electricity. The minibuseshad been on the road for a few years, under strictmonitoring, when the Nepali government announced thatthe three-wheeled polluting Vickram tempo taxis (autorickshaws) would be banned from use in Nepal's threelargest cities. [Economist: 1999] Today, despite logisticaland technical problems, all minibus taxis in Nepal run onelectricity or liquid propane gas. Passengers in Kathmanduhave indicated a clear appreciation of travelling with theexhaust free electric vehicles.

[Pallen: 1997c]

Box 4.3 ITDP: Bringing Bicycles and Trailers to the Poor

In Johannesburg, South Africa, the Institute for Transportation and Development Policy (ITDP), working with the Afrika CulturalCentre, is building on the success of ITDP's Workbike Project. The Workbike Project involved providing bikes and trailers tosmall scale enterprises for transportation and delivery services. In 1999, ITDP began implementing the Workbike Centre Project— a multi-functional facility that will provide technical support, training, small loans, subsidized bicycles, ‘workbikes’ and trailersto local artisans and vendors.

Similarly, ITDP has launched a project with an orphanage in Port-au-Prince to establish a bicycle programme where teens willearn their own bicycles and learn how to use them to navigate the city streets, earning income as bicycle messengers, mechanics,mobile vendors and collectors of recyclables.

[Hook: 1998]


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Box 4.4 Improving Small Scale Motorized Transport

Solo-Taxi in the Philippines

In a UNEP-sponsored project, experts were looking at ways to improve the performance of the solo-taxi (motorcycle/onepassenger transportation) for the Norkis Trading Corporation in Cebu, the Philippines. The aim was to develop a new model ofsolo-taxi that was both more environmentally and economically efficient. The durability of the motorcycle was considered, aswell as fuel economy and the reduction of hazardous exhaust gases.

There was a 50% reduction in the cost of the overall solo-taxi customization; reduction in material costs reached 70%.Improvements included increased convenience for driver and passenger (e.g., increased possibility for the passenger to securehis/her position, hand luggage carrier and adjustable foot rest for passengers). The solo-taxi, as a whole, became less heavy andmore speedy.

[Brezet: 1997]The Solar Baby of Malaysia

Starting in 1994, Frazer-Nash — a high tech company in Britain — put together a team of engineers and designers to develop anon-polluting alternative to the petrol and lead gas fuelled motorized auto-rickshaws found throughout Asia. The new vehicle,named the Solar Baby, saves on energy by powering each wheel by a separate motor (located on each corner behind the wheel).In the centre of the car is a box of electronics which controls the power fed to each wheel. When driving straight ahead, poweris fed equally to all four corner wheels, but turning a corner produces a huge power saving. The electronic controller will noticethat the outside wheels need more current than the inside wheels, and will automatically deliver equal torque at differentialspeeds.

Energy is also saved in breaking. With conventional vehicles, every time the driver brakes energy is wasted in heating the brakes.With Solar Baby, when the brake is applied the motors are switched to become dynamos, turning kinetic energy into electricalenergy which charges the battery as the vehicle slows down. As well, the solar panelled roof converts radiation from the sun intoelectrical energy, providing a trickle of power back to the battery pack, giving the rickshaw around a 15 kilometre extra range eachday. The battery is easily recharged.

While the efficiency of standard vehicles runs at around 20%, Solar Baby scores an impressive 95%. The cost of running the SolarBaby is one-fifth the cost of the standard auto-rickshaw. Recently, the Malaysian government backed mass production, with fleetoperators now operating five-seaters. The ultimate target is to make Solar Babies available to individual users.

[Pastakia: 1999, 26-27]

The electricauto-rickshawof Kathmandu.


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This should also involve, where possible and necessary,the incorporation of cultural, religious and family values.

At the same time that more experimentation in housingdesign is taking place, general improvements inconstruction and renovation practices should also beencouraged. The Building Centre Movement in India [Box4.5] is a good example of what can be accomplished withlocal trades people to improve and diversify housingoptions and expertise. In countries such as Nepal, manyexperts feel that the starting point for improving housingstandards is to encourage a greater use of traditionalbuilding practices:

An approach to housing design that combines the bestelements of both the traditional and modern systems isseen to be the most suitable in Nepal. Spacial layout,aesthetics, building materials and constructiontechniques should be primarily based upon thetraditional system. Technical details, such as moisture,water and environmental control and sanitary systemsare best carried out through modern materials andtechnology.

[Andhkari: 1998, 11-12]

Box 4.5 The India Building Centre Movement

The India Building Centre Movement aims to assist people by developing appropriate housing delivery systems throughparticipation, using environmental friendly solutions, and developing the right level of skills among local artisans. The Building CentreMovement facilitates the transfer of technology from lab to land, promoting the use of predominantly local materials and resourceswith appropriate technology inputs — either in the production of building components or in construction techniques. Thestrategies adopted by the movement are:

• training and skills upgrading of construction artisans, in terms of alternative, innovative sustainable building materials andtechnologies;

• assistance in the production of various building components at the grassroots level;• utilization of the services of trained artisans, along with beneficiary households, in housing construction employment

generation schemes;• utilization of locally available and innovative materials;• reduction of consumption of energy-intensive materials (such as cement and steel), and use of appropriate technology;• construction of affordable shelters and innovative construction techniques; and,• provision of housing guidance and information to beneficiaries.

Financial assistance is provided for housing. After this initial assistance, supplementary support is given in the form of soft loansfor equipment, machinery and working capital. To promote the spread of building centres, the government has given fiscalincentives, such as the exemption of excise duty and a reduction of customs duty for various building elements and components.The achievements of the Building Centre Movement are:

• the use of cost-effective, environmentally friendly technologies has led to solutions with 15–40% savings over conventionaltechnologies;

• the network of building centre has spread to 385 locations throughout India;• over 55,000 masons, carpenters, bar benders, plumbers and other construction artisans have been trained to use innovative

and cost-effective technologies;• women construction workers have been trained and can earn wages equal to their male counterparts;• construction worth over 2 billion Indian Rupees has been completed using the innovative technologies;• innovative technologies have been used in building social amenities and infrastructure building, lending credibility to the use

of such technologies for all applications; and,• the production of building materials and components required in the application of the technologies has contributed to the

development of micro enterprises.[Bestpractices on the Web (a)]


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Similarly in Pakistan, a movement is afoot to reclaimtraditional architectural practices that lend themselves toa better living environment. The ‘wind catcher’ is atraditional technology, formerly found in Karachi homes,that draws wind in to cool overheated houses. [Pallen:1999] The Aga Khan Foundation in Islamabad haslaunched the Building and Construction ImprovementsProgramme to promote traditional best practices andimproved building materials and techniques. Theprogramme aims to build and retrofit homes to better suitthem to the climatic extremes of Pakistan, and to eliminateother problems such as poor ventilation. [Nienhuys andSaeed Shaikh: 1999]

In terms of housing design, there would appear to beendless possibilities of coming up with different models tobetter integrate work and domestic requirements. Astarting point would be to examine what is presentlyoccurring informally, in terms of home renovation toretrofit homes for HBE activity and other purposes.

Trends should emerge within individual communities thatcan be studied and possibly enhanced. It would be a goodstart to develop new models that reflect what is actuallyhappening, since informal retrofitting of homes is guidedby realism and pragmatism.

The handloomer weavers in Kancheeprum, India, [see Box4.6] provide a very practical example of how, in addressingthe problems of home based enterprises, opportunitiesare created to address other problems. Anotherillustration from India is the case of the basket weavers inBox 4.7. A very different scenario from Venezuela ispresented in Box 4.8; this initiative is a good example ofhow some of the elements outlined in Chapter Three,such as the use of micro finance, contribute to projectsuccess. While the Venezuelan example did not benefitfrom strong government support, the cases from Indiahighlight the important role a supportive and flexible localgovernment can play.

Box 4.6 Integrated House-Work Area Project for Handloomer Weavers inKancheeprum,

Tamil Nadu, India

Handloom weaving is the main source of income for many Kancheeprum households. The handloom weavers undertake varioustedious tasks related to obtaining the yarn, dyeing it, reeling it, and weaving various textile products. Their quality and productivitydepends greatly on the living and working environment, the nature of materials used for walls and roofing, and the location ofventilation and light in working areas. Local authorities and financing institutions did not recognize home based handlooming asa legitimate economic activity carried out in legitimate workplaces.

The Housing and Urban Development Corporation (HUDCO) and the Ministry of Handloom and Textiles developed a projectto integrate economic development and improvements in living standards for handloom weavers. Based on families needs, ahouse-cum-workshed scheme was launched which led to a design to integrate house and work space. A participative approachwas followed by the weaver households, architects and engineers. Loans were provided to handloom families to makeimprovements.

In 20,000 houses, the combination of employment generation, economic development and conducive habitat development —integrated at the level of house and community — is demonstrating positive results. In support of the new homes, improvedsanitary facilities and potable drinking water have also contributed to bettering the health conditions of the people inKancheepuram.

This model has proved to be very successful and is being replicated in different parts of India, not only for weavers, but for otherhome based workers such as beedi-workers, sericulture workers and coir-reelers (i.e., by their respective governmentdepartments).

[Best Practices on the Web: 1998]


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4.3 Supporting SSE Outside the Home

There is potentially as much promise in devising newarrangements for SSEs outside the home as within. Todate, experimentation in this area is very limited. Thereare examples of attempts to improve the organization andcleanliness of open markets, such as what was recentlyattempted in the Andravoahangy market of Antananarivo,

Madagascar. This is important, but more profound changesrelated to street and community planning are in order.

To ensure that created spatial environments — whetherthey be found in marketplaces, streets or industrial parks— facilitates small scale enterprise, certain steps must betaken. Depending on the type of enterprise, this couldmean:

Box 4.7 Basket Weavers Housing Project in Coimbatore, India

In Coimbatore, a HUDCO project with basket weavers sought to improve working and living conditions. The project's aim wasto provide compact and efficient designs with minimum shelter and working space for the weavers, while causing the least socio-economic disruption through onsite rehabilitation. The project was a low rise, high density development. Thirty-nineexperimental housing units, demonstrating innovative, cost effective technologies, were combined with 76 conventional housingcomponents. Beneficiaries were provided with open spaces within units (i.e., verandas/terraces) to accommodate the activitiesof basket weaving. In addition, lofts were provided for storage of materials/products. Space was also provided for marketingactivities related to basket weaving.

[Best Practices on the Web: 1998a]

Box 4.8 Barrio 19 de Abril in Venezuela

In the town of Barquisimeto in the state of Lara,Venezuela, a successful multidimensional home based enterprise projet has beenunderway for two years. The Barrio 19 de Abril is a community of about 2,500 families, many of whom are very poor. The project,supported by the La Universidad Central Lisandro Alvarado (UCLA), collaborating with the Community Production Unit — thelead community organization — promotes the notion of productive housing, calling for the replacement of sub standard homeswith more suitable ones that can integrate economic productive activity. The housing units are designed to permit expansion instages, as family size and economic activity expands. Another component is the implementation of a technical training programmefor home based workers.

The families chosen to participate are amongst the poorest in the Barrio. Forty families have been involved in the initial stagesto build their new homes. Another 50 families have expressed their interest and commitment to participate in the second stage.A loan scheme was developed to allow families to pay for the cost of labour. A number of international NGOs underwrote thecost of construction materials.

Despite a number of initial obstacles, related to financing and government support, the project achieved the following:

1. The development of a successful highly participatory community self-management model driven by community members.2. The creation of artisan worker associations from the informal and formal sectors.3. Technical innovations have been introduced allowing optimization of traditional construction systems, and making extensive

use of environmentally sustainable materials, traditional architecture and building techniques.4. The development of community waste recycling systems.

[López: 2000]


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1. Ensuring access to population movement.2. Close proximity to suppliers.3. Accessible transport to work sites and wholesalers

on foot or by bicycle.4. Streets made congenial for economic exploitation,

notably main roads and feeder roads. Toaccommodate these functions and at the same timeguarantee a smooth flow of traffic, roads need to bewide.

5. Maintaining a mix of commercial activity.6. Outdoor activity relates to the activity inside local

shops.7. Respect for the type of activity. Small manufacturers

and craftsmen, for example, usually sell directly to theconsumer, and therefore require sites withcommercial potential (i.e., markets instead of lightindustrial area).

[Adapted in part from Post: 1996, 34-41]

In terms of street vending, road layouts and streetwidening would be two critical areas where changes canbe made. If entrepreneurs can see improvements beingmade in the physical configuration of neighbourhoods, itwill be easier to approach them and their associations to

assist, for example, in monitoring the number ofenterprises allowed on a specific street. There could befurther support for other endeavours if, for example,improved water and sanitation services are in place.

Special areas in settlements and communities could bedesignated for entrepreneurial activities that cannot beaccommodated within housing units (as per the suggestedproposal for a low income settlement in Egypt, highlightedin Box 4.11). Another option is to create commonworkshops that are controlled by entrepreneurs. This issimilar to work spaces within residential units, except thatthe strategy would be to focus on providing workshops toserve specific industries. Common workshops wouldrespect the scale and nature of common enterprises, withthe added possibility of creating economies of scales forthe purchase of equipment and other productive inputs.Boxes 4.9 and 4.10 are examples from Brazil and Benin ofcommon workshop facilities for a cross-section of smallenterprises.

Note: In the next chapter, the concept of clusteringindustries, to see how environmental technologies andservices can be shared, is re-examined.

Box 4.9 Mutirao Housing Bee 50 Project in Conjunto Marechal Rondon ShantyTown in Fortaleza, Ceara, Brazil

This project began with the construction of a large shed for training residents in home construction techniques. This led to threemore sheds used by community-based micro enterprises for manufacturing and selling ferro-cement, stone blocks and bathroomfixtures. Subsequent discussions with community members led to the development of two model homes using materialproduced by local micro enterprises. Land was donated by the Fortaleza City government, which also provided the necessaryinfrastructure. To date, 52 previously homeless families have been provided shelter.

A 10-store business area has been added, which in addition to providing commercial services, generates rental income that goesinto a fund to repay loans used to start the project. Money has been raised to establish a micro industrial park for suchbusinesses as metalworking, carpentry, and the manufacturing of house slippers, school bags and toys. The Rondon experienceis being repeated elsewhere in Fortaleza and the rest of the state.

[GRET: 1999]


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Box 4.10 Common Workshops Facilities in Benin: Woodworking, Metalworking,Sewing and Dyeing Services

Very few small producers can afford the equipment they need to ply their trade in satisfactory conditions. Since they operatein an undercapitalized sector of the economy, they are seldom able to borrow investment capital through official financialchannels. Mutual savings and loans associations are endeavouring to remedy this deficiency. Some types of equipment will alwaysremain beyond the investment capacity of individual entrepreneurs. To address this problem, four common work facilities wereestablished in Benin to provide the following facilities:

* workshops where machines tools and small portable equipment are available for use on a fee paying basis;

* a unit for designing new products and developing prototypes — this also houses catalogues and other documentation thatcreate an environment conducive to technological innovation and self-training;

* a space to serve: a) as storage for raw materials and supplies that mutual associations purchase wholesale for retail (i.e.,slightly below market prices); and, b) as a sales and display area for craftsmen's products;

* a room where craftsmen's trade meetings are held, and where literacy and technical training courses are given.

The common facilities workshops were found to provide a convenient place for craftsmen to meet and exchange views. Theydiscuss problems, share information on trade and technical matters, discuss social issues, and consult each other on their work.

[Maldonado: 1993]

Box 4.11 SSEs and Community Upgrading in Telal Zeinhoum, Egypt

The Telal Zeinhoum settlement, located in the heart of Cairo, has been scheduled for redevelopment. Telal Zeinhoum has apopulation of about 20,000, with a high percentage of young, illiterate and poorly educated people, who are unable to procurework other than the most menial. Local authorities have determined that Telal Zeinhoum will be revitalized in two ways:

* demolition and building of new houses and upgrading of existing sub standard housing; and,* supply of infrastructure (social, economic, water, sewers and electricity).

To begin the process of how these changes will be implemented, planning workshops and socio- economic surveys were carriedout. The community, government and consultants participated in the workshops. One of the outcomes of the workshops wasthe need to concentrate on economic issues. Accordingly, the upgrading philosophy was built upon economic issues andpromoting an area development plan that includes income generation — in particular home based enterprises. Planningconsidered the importance of the proximity of the commercial units from the homes of the residents, particularly for thewomen.

Lack of experience working with funding sources was identified as a major problem. A clear consensus was expressed on theneed to create suitable home work space, and industrial areas outside Telal Zeinhoum that are unsuitable as HBEs or in thecommunity proper. Another aspect of the plan involves increasing the number of commercial shops and workshops to createjobs for youth.

Participatory approaches were used throughout the process to secure agreement on all proposals. An NGO will be createdthat will be the government partner in the project. It will manage a community micro finance scheme for income generationactivities and home improvement in upgrading areas.

[El-Sheikk: 2000]

4.4 Selective Greening in Support of SSE Activity

The notion of managing cities as ecosystems is gainingground. The urban ecosystem model seeks a betterbalance between the natural environment and built-upspaces in urban centres. [Stren: 1994] Although anecosystems approach may not be the optimum way toaddress SSE environmental problems, it is possible that theselective greening of poorer communities could play animportant role in local strategies related to SSEs. There isgrowing understanding and appreciation about theimportance and functionality of green spaces and trees inurban poor communities.

Bhatt, reviewing studies of informal settlements in India,found that the "public open spaces in these settlements —... typically small in scale — are rich and diverse in spatialqualities, lively, full of activities and well integrated with thehousing." [Bhatt et al.: 1990, 4] Similarly, a study of theslums of Indore, India, by the CMCH reached the followingconclusion:

At first glance, landscaping seems an extraneous, if notan irrelevant issue in the context of low income urbanshelter. If landscaping is considered a frill in mostconventional building projects, it is little wonder that itplays such a minor role in what is mistakenly referredto as basic housing. Perhaps this is why tree-plantingprogrammes are absent from most (housing) projects.However, in existing slums and unplanned settlements,trees are conspicuously maintained, protected andplanted by the inhabitants — without officialassistance, and with some considerable labour. Treesprovide shade, play the role of public buildings, publicgathering place, a substitute for porches and coveredoutdoor spaces, religious space, classroom, and haveimportant aesthetic value.


The purpose of selectively greening is to create versatileurban spaces, which can serve a variety of purposes andfree up other locations for other uses. This is not to saythat trees and grass should substitute for a school room,a religious temple or a community centre. Yet, in theabsence of resources and space, greening is possibly oneway to accommodate a variety of interests and needs,which may otherwise be neglected as a result of thepresence of SSEs in homes and elsewhere. Planting trees,shrubs and grass is not costly. The major investmentcomes in the time required to ensure that everything isplanted in the right place, the right way and for the rightreason.

As will be discussed in the final chapter, engineered orconstructed wetlands and ‘living machine’ processes utilizeliving plants and irrigation systems to break downchemicals and other pollutants stemming from industrialactivity. Urban forestry and urban agriculture can also beencouraged to green and to create economicopportunities for entrepreneurs. Urban agriculture,selected greening, engineered wetlands and livingmachines, and urban forestry can all become part of amultifaceted approach in reshaping urban spaces toprovide more options to accommodate SSEs, whileimproving the overall environment of a city.

4.5 An Ideal Community Design

The design in Figure 4.5.1 is offered as an example of whatcan be strived for in community design on how toassimilate SSEs. Different housing designs are used tofacilitate HBE activity. Common workshops are present tomeet the needs of specific industries. Open space isavailable for street vendors and kiosks and bike lanes, jointhe different sectors of the community. Houses with storefronts benefit by being located where there is a highvolume of pedestrian traffic.


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60

Figure 4.5.1 Ideal Community Design


1. The use of NMVs, like cycle-rickshaws, can play a keyrole in supporting SSE activity through efficient andcost-effective transport of supplies and finishedproducts.

2. The use of NMVs also alleviates air and noisepollution in urban areas.

3. Greater effort should be made to exploreinnovations in NMV technology, so that it can beadapted for practical application to urban transportfor poor communities.

4. Given the pollution problems associated with theiruse, greater effort must be made to promote lesspolluting forms of small motorized vehicle transport.Interesting examples exist of conversion to alternativefuel sources, such as compressed natural gas, solar andelectric.

5. To better integrate economic and domestic activity,new housing models should draw upon traditionalbuilding practices within cultures, since these aregenerally guided by both realistic and practicalconsiderations.

6. When exploring options for SSE outside the home,accessibility to consumers, suppliers andtransportation are key considerations.

7. The shape, size and design of streets, other publicthoroughfares, markets and, indeed, entirecommunities could be reconfigured to facilitate SSEactivity and improve environmental standards.

8. Selective greening of poorer communities helpscreate versatile urban spaces that can serve a varietyof purposes (e.g., as meeting places). Moreover,planting trees, grass or shrubs are not costly activities.

9. Urban forestry and urban agriculture both improvethe local environment and may create economicopportunities for entrepreneurs.

10. Engineered wetlands and ‘living machines’ also have aplace in reshaping urban spaces to betteraccommodate SSEs and environmental concerns.


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5.0 Introduction

Chapters Three and Four presented an assortment ofideas and suggestions on how to work with people,governments and communities, and the order, spatialarrangements and physical characteristics of thecommunities in which SSEs flourish. This chapter looksmore closely at the inner operations of SSEs, in particularmanufacturing SSEs, to see where environmentalimprovements can be made. Energy, technology, scienceand workplace design are all aspects of the internaloperations of SSEs where changes are possible.

The chapter begins with a section on OHS practices forSSEs. OHS practices are a concrete example of how toimprove the workplace from a health, environmental andeconomic standpoint, without incurring significant expenseor necessitating great scientific or technical support.

5.1 Occupational Health and Safety Standards for SSEs

The disturbing part about the absence of OHS standardsin the SSE sector is that pilot projects have demonstratedthat cost effective interventions can lead to significantimprovements in the safety of the workplace, while at thesame time improving production. Moreover, smallerenterprises appear to be more conducive to improvingproductivity by means of better working conditions:

Small enterprises differ from larger firms in thatproductivity in small enterprises is usually low andresponsive to improvements. Further, in smallenterprises, praise is taken personally, there is only onedecision-maker who is action orientated, and the owner

has at least a paternalistic interest in workers.Changes can thus be introduced rapidly, and smallscale interventions can have a major impact.

[Di Martino: 1995, 2-3]

In the end, improved OHS practices may be where thecritical breakthroughs will be made to improve overall SSEenvironmental standards. Improved OHS standards maymean a simple redesign in equipment, the recon-ceptualization of floor space, the introduction ofprotective gear, or appropriate disposal bins andcontainers. Such changes are simple to make but need tobe thought out, as the smallest gesture towardsimprovement can backfire. For example, SSE workershave been known to routinely refuse to wear protectivemasks and gloves for reasons of comfort. [Pallen: 1997a]

It is also important that OHS schemes aim to improve thefinancial bottom line of SSEs. Given the fragile financialstatus of SSEs, increased profit will always be a keymotivation for entrepreneurs. This is not to say there arenot other motivating factors. OHS activities aimed atensuring the safety of children and other family membersfrom workplace hazards is another selling point.

In the end, simple principles related to being practical,participatory, cost-effective, profit enhancing andproductivity raising will appeal to SSEs. Boxes 5.1, 5.2, 5.3and 5.4 present four different perspectives on makingOHS improvements in SSE workplaces. Through the casestudies, one sees how local governments, donororganizations, NGOs (both local and international),entrepreneurs and their associations, and even largeenterprise could all play a leadership role.

Chapter Five Improving the Environmental Performance of SSEs


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Box 5.1 ILO WISE in South America

The ILO has developed an approach to the improvement of working conditions and productivity in small enterprises with atraining method called WISE (Work Improvements in Small Enterprises). The WISE approach was deemed necessary, astraditional inspection-based methods for protecting workers are often inadequate for small enterprises.

The training methodology of WISE includes these basic principles:

1. Build on local practices.2. Focus on achievements.3. Link work conditions with other management goals.4. Use learning by doing.5. Encourage exchange of experience.6. Promote workers’ involvement.

The technical content of each programme is:

Materials, storage and handling: Racks, carts and other low cost improvements help recover misused space, lower capital costs,eliminate unnecessary operations, and upgrade work space appearance.

Workstation design: Tools and materials placed within easy reach, good use of jigs and fixtures, and avoiding work in strainedpostures, resulting in higher productivity and better quality products.

Productive machine safety: Use of feeding and ejecting devices, and redesign of machine guards to increase productivity andeliminate hazards.

Control of hazardous substances: Dust fumes and other contaminants interfere with efficient operations, damage machines andproducts, and are harmful to workers’ health. Through simple and inexpensive means, problems can be reduced and wasting ofvaluable chemicals can be stopped.

Lighting: There are many low cost ways to improve lighting conditions by making better use of natural local light.

Welfare facilities and services: Welfare facilities are critical for improvement of workers’ health, morale, motivation, job satisfactionand attendance.

Work premises: Most small enterprises are located in buildings which were not designed for their current use. There are alwaysways to enhance productivity by improving the work environment.

Work organization: Modern techniques, such as task combination, multi-skilling, a group workstation or product-orientatedorganization, can be the key to improving workers’ motivation and work efficiency.

Work involvement: The training programmes provide entrepreneurs with an opportunity to learn the value of making better useof their workers’ skills, abilities and ideas.

In the 1992-93 period, 136 enterprises from South America participated in WISE training workshops. Actions plans identified1,042 workplace improvements to be implemented. Within a short period after the workshops, 623 of the improvements wereimplemented, another 135 were in progress, 233 still planned, and another 51 were dropped.

[Di Martino: 1995, 1-4]


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Box 5.2 ILO — Promoting Productivity and Social Protection in the Urban InformalSector, Dar es Salaam

As part of an ILO project, 11 informal sector clusters in two districts in Dar es Salaam were included in a study on OHSpractices. The prevalent problems found in the clusters included: exposure to occupational hazards, poor welfare facilities, lackof occupational health services and protective equipment, use of unsafe equipment/tools, poor workstation design, housekeepingand material storage, poor personal protective devices and work organization, as well as a lack of communication channels withthe authorities. The micro enterprises included in the study were:

• basic metalwork including metal products fabrication;• timber and woodworking;• tailoring and shoe making;• market products retail business;• mechanical and electrical workshops;• arts and crafts, including carving, basket and carpet making;• cooking and vending food, including fruits and vegetables;• flour milling;• vegetable growing;• yarn dyeing;• repair of plastic containers;• fishing, fish processing and selling;• used tire engraving and selling;• stone crushing.

Short-term pilot intervention programmes were initiated to improve working conditions and to provide OHS services to theclusters. Cluster operators were trained in first aid, and health care workers were trained to undertake health promotionactivities in the clusters. Safety and health committees were created and their members were trained in basic OHS. City councilresumed sanitary services in the clusters. Other inputs included provision of first aid kits and drinking water facilities.

Results of the Pilot Intervention

1. Eleven informal sector operators from 10 clusters have been trained in first aid, and 28 health care workers (10 nurses, 10clinical officers and 8 medical officers) in occupational health services.

2. First aid services in nine of the clusters had been established. Health care workers visited the clusters to check the healthof the operators and have been given health education in various occupational health topics.

3. A total of 61 operators — members of the Safety and Health Committees from eight trades — were trained.

4. Some practical improvements have been carried out in four clusters, including:

• daily sweeping/cleaning of work sites;• arrangements of materials;• wearing of clean clothes/uniforms: and,• daily collection of waste to a central collection point.

5. Five other clusters have started mobilizing funds for maintaining toilets.

6. Waste disposal by the city council has improved in one cluster, while a private contractor has been hired by another toremove and dispose of waste.

7. City council sanitary services to the clusters have generally improved, due in large part to better communication.

[Forastieri et al.: 1996]


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Box 5.3 CIDA Awareness Raising for Environmentally Sound Practices in Recyclingof Used

Batteries in Dhaka, Bangladesh

Since the early 1960s, the recycling of old batteries has grown as an income generating activity in the slums of major cities inBangladesh. In a typical battery recycling operation, dismantling includes opening the battery casing, taking out the lead-oxideplates and separators, and draining the sulphuric acid. The batteries are then rebuilt using new leads, plates and separators, andsulphuric acid. Environmental impacts are soil and water pollution from drainage of used sulphuric acid.

Initial investigations revealed significant environmental and health risks with present battery recycling practices. For this reason,CIDA and the Integrated Health and Development Centre in Dhaka decided to launch a pilot project with the following broadobjectives:

• to further analyze battery recycling activity and its associated risks;• to raise awareness among the different actors, including the enforcement and policy making agencies, about the occupational

hazards of battery recycling activities and relevant policy formulation.• to demonstrate mitigation measures to carry out recycling activities in environmentally and OHS sound ways.

The project calls for collecting information on key issues and the views of workers, specifically women, adolescent girls andchildren. Chemical analysis of the blood samples will be done under the project with respect to indicators on health and relativeenvironmental hazardous/toxic levels. Three hundred workers from two study areas in Dhaka will be involved in the study. TheBangladesh Used Battery Breakers Association is expected to be involved in a subsequent awareness campaign. Twenty-threeday awareness raising sessions for 300 workers will be conducted.

[CIDA: 1997 and Child: 1998]

Box 5.4 The Brassware Workers of Aligrah, India

Aligarh is a small town situated around 180 kilometres south of New Delhi in the state of Uttar Pradesh. The brassware industryis the dominant feature of the local economy. Much of the brassware industry is home based, involved in the production processin the casting, filing, grinding and polishing stages. OHS standards are non-existent, with workers operating in close proximity tofire furnaces, handling molten metal and scorching hot casted products. Casting is also a polluting activity where acidic washingof materials is commonplace.

Nevertheless, workers rarely wear protective clothing or shoes. Children can be found playing around the furnace andsometimes helping with secondary tasks. The risk of accidents is very high. There are other OHS standard issues related tocramped, filthy, cluttered and poorly ventilated conditions. The work is done on a contractual basis with large local companies,who take no responsibility for the workers’ and family safety.

International Resources for Fairer Trade (IRFT) is a Bombay-based development agency dedicated to fair trade, and a partner ofthe UK-based charity,Traidcraft. IRFT, working with Prashant Enterprises which is one of the large companies contracting homebased brassware workers in the area, developed a medical benefits and health and safety equipment programme for workers.However, the OHS activities were met with indifference on the part of workers, who refused to wear protective equipment.

This led Prashant Enterprises and IRFT to decide to experiment, by providing a casting facility with a 50-furnace capacity and arequirement that all Prashant contract casters use the casting house to work. The casting house is well ventilated, well illuminatedand has sufficient space between furnaces. Children are not allowed into the facility. Casters could choose to work at any timethey pleased, and protective clothing is provided and inspected.Today 10 furnaces are operational and long-term internationalcontracts have been won with foreign companies, largely a result of the improvements made in OHS standards.

[Singh and Kowale: 2000]


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5.2 From Waste to Green Pastures

Recent pilot projects and research demonstrate that SSEscould be even more creative with the waste and pollutioncreated by SSEs and other enterprises. A key weaponcould be the use of natural systems that break down toxicand pollutant elements. ‘Engineered wetlands’ and theaptly named ‘living machine technologies’ are designed toutilize living plants to complete the chemical conversion ofwaste to inoffensive matter.

In Asia, there is considerable experience with engineeredwetlands [see Pallen: 1997a, 47]. Engineered wetlands areused to break down sewage that is then channelled intofish farming systems. Throughout Asia, in cities such asCalcutta, the reuse of human waste in fish farming systemsdates back centuries. [Edwards: 1992] There are a widevariety of models in operation, in both urban and peri-urban areas. In addition to their aesthetic appeal and fishfarming potential, the cost of constructing engineeredwetlands for sanitation purposes is in general 25% to 40%cheaper than a standard sanitation system providingcomparable performance.

[Weil: 1998]

It is always surprising what can be achieved by using theinherent capacities of nature. Pioneer work related tohow plants and flowers can render heavy metals andpollutants inoffensive is very promising. Research insupport of this publication identified over a hundreddifferent uses for engineered wetlands for treatingindustrial, human and agricultural waste and pollutants.That costly infrastructure or technology can be avoided infavour of approaches which introduce natural systems intothe urban and peri-urban landscape is very encouraging.However, more research and experimentation is requiredrelated to how industrial waste and pollution can betreated by natural systems.

The example of the Monfort Boys School Project [seebox 5.5] demonstrates how source pollution can beeliminated, while creating employment through new microenterprises and contributing to sustainable agriculturalproduction.

Figure 5.2 is another example of what could be possible ifa litle imagination is used.

In Figure 5.2, an engineered wetland is established to treatthe pollution of a polluting SSE cluster. The enterprises arelocated around the central body of water where thewastewater is discharged. From there the wastewatermoves through a serie of stages where different waterbased plants are used to neutralize toxic elements such asmercury, chronium and arsenic. At each stage, thepolutants become less toxic. Finally, the water enters theriver unpolluted. The area surrounding the engineeredwasteland is highly urbanized.

5.3 Clustering and Common Facilities

As mentioned earlier in this document, the clustering ofenterprises working in the same or related sectors is ahighly common phenomenon. Improved goods andservices, specialized labour, and the availability of rawmaterials, are some of the economic advantages ofclustering. Furthermore, within the scope of theseeconomic benefits lies an opportunity to promote greaterenvironmental efficiency. [Werna: 1997, 397] Forexample:

• Waste treatment facilities can be introduced on anappropriate scale to reduce pollution. This includesnovel approaches, such as engineered wetlands totarget a particular pollutant or industry.

• Enterprises and suppliers providing environmentalgoods and services can locate close to the clusters.

• Through clustering, there is also the possibility ofestablishing more appropriate training programmesand OHS resources through such acts as reinforcinglocal health services. Dues can be payed by theclustering enterprises to ensure services.

• Educational awareness and outreach campaigns onOHS and environmental issues can target clusters.


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Figure 5.2 Using engineered wetlands employing a multi-stageapproach

to treat the pollution of an SSE cluster.


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Box 5.5 The Monfort School Project: Beer — A New Source of Small EnterpriseDevelopment

In a promising agricultural experiment, a boy's school is linking five different micro enterprises so that the waste from eachbecomes a key input to another. The sludge of a large Fijian brewery is the source of pollution from which five new enterpriseswould be established. What was a troublesome pollutant would be turned into crops of fresh mushrooms, chickens, fish andvegetables, and fuel for electric power. Working with the Monfort Boys School for orphaned and disadvantaged boys, the UnitedNations University developed this project, which can be described in six stages:

Stage 1: At the brewery, the waste from the brewer's spent grain is collected. The waste grain had been destroying local marinelife. It is now recuperated and used as a fertilizer for mushrooms. The brewer's grain is, of course, free.

Stage 2: Mushroom Growing — Three kinds of mushroom have been selected to grow due to their high market value. Residuefrom mushroom fertilizer is then used to feed chickens, as part of the second micro enterprise. The mushroom waste is bothnutritious and safe for the animals, and makes an excellent feed.

Stage 3: Chicken Raising — Animal waste is collected and put into a decomposer for separation. Inside the decomposer, thechemicals in the wastes will separate the constituents into either energy or fertilizer production.

Stage 4: Methane Gas Production — Methane is produced from the chicken waste, and is collected and bottled to operate theschool generator. About three gallons of gasoline a day will be produced, an appropriate amount to service the school. Later,a pipeline will be built to carry the gas to the school buildings. Solid matter is processed into fish food.

Stage 5: Fish Ponds — Meanwhile the solid matter that is left after the gas is bled off will move in a solution of water throughseveral compartments of a digester, at each stage losing some of its bacteria and some of its potential for spreading illness. Whenit emerges from the last compartment, this decontaminated manure will be neatly converted into the same ‘NPK’ nutrients —nitrogen, phosphorus and potash. With the help of gravity, it will then flow through three cleansing ponds, where bacteria,plankton and other micro scavengers will consume any residual, unwanted parts of original animal wastes. What emerges in thefish pond is a perfect fish food. Nutrients in fish water will be used for growing hydroponic vegetables on top of the pond,reducing the quantity of muck left for disposal.

Stage 6: Vegetables are harvested for consumption or market, leaving little or no waste at the farm. On top of the pond, morefood will be grown hydroponically. Flowers, strawberries and high value vegetables, such as golden needle, will be grown floatingon the water, so that their roots can draw nutrients from the dissolved fish waste.

[Kane: 1997]


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Box 5.6 below, illustrating the rattan industry of Indonesia,is a good example of how economic and environmentalobjectives can be met through clustering. Box 5.9, later inthis chapter, describes a new initiative by CIDA to providebrickmaking clusters in Egypt with a cleaner burningnatural gas energy.

In India, common treatment facilities are at various stagesof installation to support clusters of small scale industry,from tanneries in Madras to textile dyeing in Thirupur [seeBox 5.7]. The India Ministry of Environment and Foresthas experience in creating common treatment facilities forclusters, and considers it an important part of overallplanning for infrastructure and services for clusters, whichis presently very weak. [MSG Environmental Services:1999] The Government of Indonesia has actively pursuedpolicies to cluster same-sector enterprises by providingshared services.

While the clustering of industries may have environmentaland economical advantages, Chapter Two discussed howthe risk of serious negative environmental damage is muchhigher. In other words, all the pollution and risk factorscan be concentrated in a small area with no propercontrols in place. Problems such as air emissions,

discharges of effluent, storage and disposal of wastes,industrial accidents, spills and nuisances such as noisecould be further exaggerated.

5.4 A New Look at Technology

It has been over 25 years since E.F. Schumacher wroteSmall is Beautiful, which promotes among other ideas thenotion that technology should and can be developed tocreate more meaningful employment for people whilenot causing environmental damage. [Schumacher: 1974]The conditions under which the vast majority of urbanSSEs operate could not be any further removed from theidyllic world envisaged by Schumacher.

Yet, considerable latitude exists to develop and promotetechnologies to reduce environmental risks and improvethe working conditions of small scale entrepreneurialactivity, which would bring this world more in line withSchumacher’s vision. The example in Box 5.8 of theMedleri Charkha, a foot-operated, self-winding spinningwheel, is a modest demonstration of how technologicalchange can have a positive impact on production, workingconditions and environmental well-being throughincremental improvements in technology capacity.

Box 5.6 Small Scale Production in the Rattan Industry in Tegalwangi, Indonesia

The historical concentration of rattan firms around Tegalwangi has been the result of numerous initiatives by regional governmentto encourage the creation of enterprise clusters. Clustering is a precondition for government assistance. In Tegalwangi, clusteringhas meant that raw materials are more readily available to small producers. Rattan is brought in from the distant islands ofKalimantan and Sumatra. Prices charged by local traders are higher than those imposed by outside merchants, but creditconcessions make them accessible to producers with little capital.

For small scale producers, proximity to each other also means the possibility of utilizing more advanced machinery. For instance,one very small producer is able to produce semi-finished goods for a large exporter, thanks to his access to a steamer (to bendthe larger rattan canes into frames) owned by a neighbour.

Physical proximity also facilitates transportation. Small producers make use of traditional means of transport, such as bicycles,hand carts and cycle-rickshaws, to carry materials, parts and finished goods which could not be employed if distances weregreater.

The flow of information concerning demand, prices and levels of wages is also facilitated by the concentration of small firms. Aswell, skill transmission is an integral part of family and neighbours' daily exchanges, and it is made easier by proximity. Theimportance of this informal training receives recognition through the higher wages paid to workers originating from the village.

[Smyth: 1992, 53]


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Box 5.7 Common Effluent Treatment Plants Initiative

In India, the Ministry of Environment and Forest has developed a scheme for setting up common effluent treatment plants forsmall scale industries regrouped in clusters. Financial assistance is provided to industrial associations, in the form of subsidies (i.e.,25% of project costs from central and state governments) and loans (i.e., 30% of project costs at reduced rates of interest fromthe Industrial Bank of India). The participating industries are expected to contribute the remaining 20% of the project costs.

[MSG Environmental Services: 1999]

Box 5.8 The Medleri Charkha: A Foot-Operated, Self-Winding Spinning Wheel toRecycle

Waste Silk

In 1983/84, IDS (India Development Service) approached the TOOL Foundation (Transfer of Technology for Development) withthe request to assist in the development of appropriate pre-weaving technologies. The traditional technology was ergonomicallydifficult to handle, and productivity and quality were rather low. TOOL assigned a technician to work on improving existingtechnologies.

In 1986, the Medleri Wool Charkha, a foot-operated, self-winding spinning wheel, was developed in close co-operation withspinners from Medleri village. After various prototypes, the final design was put into production by Phoenix Products. TOOLstarted the adaptation of this spinning wheel for the spinning of silk waste. This adaptation was successful, and Phoenix Productshas started the production of the Medleri Silk Charkha as well. TOOL assisted Phoenix in the production and the setting ofquality standards.

IDS and TOOL developed a training programme for spinners and trainers for the introduction of the Medleri Wool Charkha.Maintenance centres were established, with staff receiving technical training in maintenance and repairs. Requests for this newtechnology are coming from organizations throughout Asia, who are expressing interest in the Medleri Charkha for spinning silk-waste, cotton and wool.

Features of the Medleri Charkha:

• metal design — more durable than wood, and in India also cheaper;• foot-operated, with self winding mechanism;• winding speed regulated by adjustable brake mechanism;• possibility to mount either a low speed or high speed spinning mechanism;• easy adjustment of driving belt tension;• produces strong, even yarn for better, longer lasting products;• most spinners with a Medleri Charkha spend less time on spinning the same quantity of wool yarn, as spinners who use

traditional technology;• will spin any quality of wool;• made from locally available parts;• easy to maintain.

[TOOL: 1997]


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Most technological investment in developing countries is insupport of large scale industry, despite the fact thattechnology employed by SSEs generates much higher levelsof employment. [Stewart: 1989] It would be much easierfor countries such as Canada to provide suitabletechnologies, if SSEs in Canada already employed the sametechnologies. Since this is not the case, NGOs, donorgroups and government departments must be encouragedto place a greater emphasis on technology development,given there is now a much better set of development skills— in areas such as participation and financing — to makesure the technologies achieve their social, economic andenvironmental objectives.

Large and medium size enterprises (LMEs) in developingcountries with the resources for product developmentshould be encouraged to work with the SSE sector todevelop new technologies. LMEs are well placed forunderstanding how the SSE sector operates, and howopportunities can be exploited. What company would notwant to develop inventions, like the handloom wheeloutlined in Box 5.8, given the potential market?

It is also important that existing technologies be promoted.In India, Dasgupta reports that some SSEs are not aware of,nor are interested in, some of the low cost options whichare presently available. For example, small scale metalfinishing and electroplating enterprises can considerablyreduce ground contamination by toxic effluent, by usingcheaper alternatives to the drag system presentlyemployed. [Dasgupta: 1998] In Chile in 1992, a fair washeld, bringing together 110 technologies invented or usedby the informal sector that were deemed to have positivebenefits for the environment. [Bengstsson: 1995] Thereare many generalizations regarding the limited ability of theSSE sector to work with and develop new technology.Until this is proven to be the case in a given city, settlementor sector, technological solutions should not be discounted.

5.5 Energy

A coming explosion in the potential of non-pollutingrenewable energy has been predicted. Competitive (reprice), clean and adaptable energy sources have beenenvisaged for home, transportation and industrialapplications. Over the last ten years, only incrementalprogress in technological capacity and price have beenmade in the renewable energy field. However, the boom iscoming. Increasingly, national governments, business, utility

companies and non-governmental organizations aremaking greater investments into understanding howrenewable energy can be used. Large multinational energyand automobile companies are banking on renewableenergy, directly promoting its use in the developing world.[Hook: 1999, 1]

There is no reason why, one day, developments inrenewable energy in industrial countries will not lead toaccessible and practical applications in developingcountries. From the urban and peri-urban SSE standpoint,renewable energy can already be competitive wheredependable grid energy is not available. Renewable energyis already outperforming certain types of energy sources,such as kerosene lamps, candlelight and batteries in ruralareas. [World Bank: 1996] As the World Bank points out,solar energy can offer higher quality light, improved safetylevels, cleaner indoor air and greater reliability, than otherenergy sources. [1996, 14]

To date, considerable experience has been gained in ruralareas and mountainous zones in promoting small scaleapplications of renewable energy. This includes wind, solarand biomass. Already there are a wide variety ofrenewable rural energy projects supporting ruralenterprise. Enersol and the Solar Electric Light Fund aretwo international NGOs that have considerableexperience promoting solar energy in support of smallenterprise.

Peri-urban areas are a likely point of entry for renewableenergy, where hooking up to the grid can be expensive andpower interruptions are common. In Burkina Faso, solarwater pumps have been successfully installed in a peri-urban zone of Ouagadougou. Solar water pumps are moreexpensive and technically harder to install and maintainthan simple solar panels to produce electricity. [Tounkaraand Schiller : 1998] In a recent study in India, SSEs claimtheir greatest preoccupations regarding energy areshortages and blackouts, and the high cost being paid forsupply. [MSG Environmental Services: 1999] If renewableenergy can deliver, in terms of cost and reliability, then thereis no reason why it cannot be competitive with unreliablegrids, unsafe kerosene lamps, candlelight, batteries anddiesel motors.

Although far away, one day renewable energy capacity willbe more in line with what our imagination would like it to


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be. In the meantime, there is a lot of room to work withexisting energy technology to improve efficiency, andreduce pollution and costs. In India, clay brickmaking, glassmaking, steel re-rolling and foundries are all sectors of SSEactivity suffering from energy inefficiencies. [MSGEnvironmental Services: 1999] In these industries andothers, energy efficiency improvements can be made.

In an important recent development, CIDA, incollaboration with the Government of Egypt, announced aproject to provide brickmakers in Egypt access to naturalgas — a much cleaner alternative to the present energysource [see Box 5.6]. As countries like Egypt, Pakistan andBangladesh continue to develop their natural gas capacity,there will be more opportunities to benefit from theexpertise of natural gas producing countries, such asCanada, to serve small industries such as brickmakers.

5.6 Appropriate EnvironmentalManagement

Practices

In industrialized countries, a wide array of environmental

management practices are being developed in relation toindustry. Environmental audits, environmental assessmentpractices, workplace redesign, monitoring measures,inspection standards and new forms of legislation are atthe forefront of finding new ways to better harmonize theneeds of the environment with industry. As most of thesetools are intended for larger, often mechanized,enterprises that have the time and resources to make thenecessary investment, these may offer little of value toSSEs.

Moreover, in industrial countries, there are oftengovernment agencies present to provide direction,financial assistance and training, in addition to the tools.Some larger size SSEs, which are more economicallysolvent, could make use of some of these environmentalmanagement tools, but in most cases there would not bea natural fit. In this respect, it is important to keep in mindthat although enterprises may produce the same form ofpollution, the solutions for each enterprise must considertheir particular size and local circumstances. [Dasgupta:1997, 294]

Box 5.9 Cleaner Energy for Brickmaking Clusters in Egypt

There are approximately 2,000 small scale brick factories in Egypt, clustered in urban and semi urban areas, and operating on aninefficient and dirty combustion fuel known as mazout (a heavy residual oil). Mazout is the prime energy source for brick furnacesoperating 24 hours a day. Brickmaking is very labour intensive, with each factory employing 100 to 150 people — between200,000 to 300,000 workers in all. In addition to high sulphur oxides, carbon monoxide and hydrocarbon emissions, Mazout fuelcreates highly unsafe conditions for workers and their families. Health problems range from eye irritation and nose bleeds, tolung cancer and cardiac difficulties.

The Egyptian Ministry of State for Environmental Affairs identified small scale brickmaking as a priority for introducing significanttechnology improvements to reduce pollution. Egypt is actively establishing the necessary national infrastructure to facilitate thewidespread use of natural gas. This includes supplying service stations, and providing small scale industry access to natural gas.

Responding to a request made by the Giza Union of Brickmaking Factory Owners, a pilot project has been approved to usegrowing Canadian private sector capacity in the field of natural gas conversion technologies to convert brickmaking over tonatural gas. Two brickmaking clusters have been targeted. The project will be managed through CIDA's Egypt EnvironmentalInitiatives Fund (EEIF), which assists small and medium enterprises to improve their environmental management capacity. TheEgyptian government has agreed to build and cover the cost of the natural gas network into the cluster areas. Innovative financingfor environmental improvements, developed by the EEIF, Egyptian banks and the Government of Egypt, will be used to coverother costs.

It has been estimated that the Canadian technology could lead to a 75% reduction in greenhouse gas emissions, with even greaterreductions in other pollutants.


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Environmental assessment (EA) — the practice ofevaluating and anticipating the environmental impact of aproject, and identifying appropriate mitigation measures— is probably the best example of an environmentalmanagement tool that in principal should be of use to allenterprises regardless of their size, location, productiveinputs and equipment. Yet EA is still searching for its placeas an environmental management tool in developingcountries. CIDA is one development agency that isputting considerable resources into finding ways to makeEA a more practical and appropriate development tool[see Pallen: 1996]. EA and other environmentalmanagement practices have the potential to be useful, aslong as an effort is made to modify them to the scale andcircumstances of the enterprise.

5.7 Eco-Industrial Parks

One approach found in industrial countries that couldadapt nicely to urban and peri-urban areas in developingcountries is the eco-industrial park (EIP) concept:

There is a movement in industrial countries to a newkind of industrial development that uses resourcesdramatically more effectively and refines themanufacturing economy. Current trends in sustainabledevelopment and business management are convergingon a new model of industrial operation exemplified bythe discussion of eco-industrial parks ... Eco-IndustrialParks (EIP) strive simultaneously to increase businesssuccess while reducing pollution and waste. Rooted inthe emerging discipline of industrial ecology, an EIPmirrors natural systems.

[Cohen-Rosenthal et al.: 1999, 1]

Lowe and Warren add:

An eco-industrial park is a community of manufacturingand service businesses seeking enhanced environmentaland economic performance through collaboration inmanaging environmental and resources issues includingenergy, water, and materials. By working together, thecommunity of businesses seeks a collective benefit thatis greater than the sum of the individual benefits eachcompany would realize if it optimized its individualperformance only ... the goal of an EIP is to improveeconomic performance of the participating companieswhile minimizing their environmental impact.

[Lowe and Warren: 1996, 7-8] Cohen-Rosenthal point out that it is not uncommon for"two companies and or even more to develop mutuallyadvantageous relationships where the waste products ofone company form a valued input product for another."[Cohen-Rosenthal et al.: 1999, 1] There are close to 20EIPs in North America. The interesting aspect of EIPs isthe tendency to use a wide variety of approaches tocustomize the EIP to a location:

(EIPs) draw on different perspectives and disciplines tohelp formulate their ideas. All use an industrial ecologyframework to help inform their development. Somedraw heavily on urban and land use planning that hasbeen used in economic development and recruiting.Others are more engineering driven seeing thepossibilities of creating pipe to pipe interconnections.This perspective recognizes new technologicalpossibilities especially in the development of connectingtechnologies that support regional industrial recycling.

[Cohen-Rosenthal et al.: 1999, 1]

Already in developing countries one observes, throughinformal recycling and waste management, a starting pointfor understanding how the concept of the eco-industrialpark might take shape. However, to make the EIP conceptmore relevant implies going beyond present practices tosee the potential of recycling, waste management andwaste exchange on another level.

The way to make the EIP concept work would be to notlimit the concept to small enterprise, but to include alltypes of industry. This will create more options. Therecould be further niche opportunities for enterprisecreation for SSEs providing repair and rental services, asremanufacturers and recyclers, as well as sellers of usedmaterials and equipment. An interesting starting pointcould be in peri-urban zones where there is a mixture ofindustrial and agricultural activities, and solid and liquidwaste management services are often poor or non-existent.

5.8 New Environmental Enterprises

The premise of this document has been finding ways toreduce negative environmental impacts. Yet, anothercourse of action would be to stimulate the creation ofurban SSEs that could provide goods and services which


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address environmental problems. The Monfort schoolproject in Box 5.5 is a good example of furtheringopportunities in the recycling and waste managementfield. Renewable energy is certainly another field withpotential. Groups, such as Enersol, have worked withmicro entrepreneurs to establish businesses that providesolar energy repair and maintenance services to homesand businesses. As the importance of urban agriculturegrows, there would appear to be business opportunitiesthrough the sale of such items as hydroponic equipment.

There would also seem to be opportunities in providingcommunity-level water and sanitation services. Although

most of the models discussed point towards communitycontrol, there should be room for enterprises, in much thesame way there are opportunities in the transportationand housing sectors. In countries such as Canada, it is notunheard of for companies that pollute to develop theirown technological capacity to deal with the problem.What they often find is that they have also developed avery marketable product. There is no reason why SSEscould not create their own market opportunities, basedon their own inventions. It is important to identify whereopportunities exist.


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1. Occupational Health and Safety (OHS) practices area cost-effective way of improving the workplace froma health, environmental and economic standpoint.

2. Improved OHS standards will improve overall SSEenvironmental standards through fairlystraightforward inputs like redesigning work spaceand basic equipment.

3. Improved OHS practices can increase the profitabilityof SSEs.

4. Improved OHS practices can help ensure the safetyof children and other family members.

5. Local government, donors, NGOs, entrepreneurialassociations and larger enterprises all have a potentialleadership role to play in encouraging improvementsin OHS standards in SSEs.

6. Engineered wetlands and ‘living machine technologies’have an important role to play in treating industrial,human and agricultural waste and pollutants in urbanand peri-urban areas. These natural systems couldprovide SSEs with a cost-effective weapon formanaging waste.

7. More research and experimentation is required onhow industrial waste and pollution can be treated bynatural systems.

8. Clustering of enterprises offers clear economicadvantages in terms of improved goods and services,specialized labour and availability of raw materials.

9. Clustering also offers potential to promote greaterenvironmental efficiency — e.g., common wastetreatment facilities and OHS outreach campaigns.

10. Clustering does have the potential of increasingnegative environmental impacts if no controls are inplace, given that pollution and other risk factorsbecome concentrated in one area.

11. More technological investment in developingcountries should be directed to the SSE sector, giventhe number of people it employs.

12. LMEs, with resources for product development, arewell placed to support the SSE sector to developnew technologies. It could be a mutually beneficialarrangement.

13. Renewable energy sources have an important role toplay in supporting SSEs in urban and peri-urban areasin developing countries. Renewable energy, like solar,wind and biomass, can be more competitive in areaswhere dependable grid energy is not available.

14. Environmental assessment (EA) is probably the mostadaptable environmental management tool. EA hasthe potential to be useful to the SSE sector, since inprinciple it can be applied to any enterprise regardlessof its size, location, productive inputs and equipment.However, more work is needed to make EA apractical and appropriate development tool for SSEs.

15. The eco-industrial park (EIP) concept looks toincrease business success while reducing pollution andwaste. To successfully implement the EIP concept indeveloping countries would require an approach thatincludes all types of industry, not just SSEs.

16. SSEs have a role to play in developing their owntechnological solutions to local environmentalproblems — solutions that have the potential to bemarketable.


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6.0 In Summary

This document has highlighted the importance andpossibility of finding opportunities within the SSE sector tobe creative in often problematic circumstances. Theperspective may be judged overly optimistic in its believein more extensive and better environmental planning inrelation to small scale enterprise. However, considerableeffort has been made in this publication to present insightfrom related fields of activity, pilot projects and,sometimes, simple ‘antidotal’ information to justify theoptimism that substantive change is possible.

Change is already occurring in terms of how small scaleurban enterprise is viewed and related planningconsiderations. There is, in fact, an incredible range ofpossibilities for assisting SSEs, illustrated by what isoccurring in diverse locations across the globe. However,the actual level of activity is comparatively small andlocalized, in relation to the larger picture. One interestingaspect of these seemingly isolated occurrences is that theyare embracing similar principles of sound development,such as participatory development and innovative financialschemes, while encouraging considerable cross disciplinarypollination. In the future, greater integration of disciplines— e.g., micro finance professionals working with architectsand entrepreneurs; informal trade associations workingwith energy specialists; and, local governments partneringwith SSE entrepreneurs and community groups — willcreate new prospects for change.

It is hoped that this document serves as a starting point inrethinking how urban SSE activity in developing countriesis viewed — especially in terms of some of the dynamicsemerging in cities throughout the developing world. Theevolving relationships between urban and rural zones, andthe promise of a more pronounced role of localgovernment institutions being the most importantfundamental changes in this respect. Technologicaladvancements in a broad range of fields offer another

impetus for rethinking long-standing approaches todevelopment. The timing is certainly right to examine theworld of urban SSEs, in terms of the how, why and whereof creating jobs and enhancing the workplace.

This document has outlined a range of inherentadvantages found within the SSE sector — e.g., thepractice of clustering, the resourcefulness, and tendenciestowards innovation, improvisation and imitation — thatcan be utilized to propel change. Yet, perhaps the mostimportant factor to keep in mind is that workers andentrepreneurs have the greatest stake in seeing the urbanenvironment improved.

The neighbourhoods in which SSEs strive are aninteresting study in the use of space and functionality, andSSE activity plays a big part in this equation. The nature inwhich poorer communities evolve and operate must beunderstood and exploited for the purpose of improvingSSE environmental standards for the betterment of everycommunity. Another aspect of community life, whichneeds to be accounted for in attempts to improve theenvironmental standards of SSEs, is the often vast array ofsocial arrangements at the household, street and,sometimes, community level that underpin small scaleentrepreneurial activity.

What needs to happen over the short to medium term isfor development agencies, local governments and NGOsto concentrate on solving problems and promotingchange that clearly appeals to entrepreneurs, workers,their families and community. This means tackling realissues identified by the target group. Finally, a broad rangeof micro initiatives should be launched, related to SSEenvironmental standards, that will provide developmentpractitioners with greater information and, hopefully,encourage more substantive activity.

Chapter Six Conclusion


79

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Reinventing the City

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Transcript of Reinventing the City