W12 Reading:The business side of sustainable forest management: Small and medium forest enterprise development for poverty reduction/ Joon Hee Lee

The business side of sustainable forest management: Small and medium forest enterprise development for poverty reduction 


Many local residents and natives have been managing forests and rainforests in their areas for a long time. They have lived in traditional ways of forestry and life, but they are also struggling with poverty. That's how it started: 'Small and medium first enterprise'. Short for 'SMFE'.

SMFE encourages small and medium-sized businesses seeking sustainable forest development and sound forest development to receive incentives in various aspects. According to the World Bank, about 90 percent of the poor depend on forests for their living and income. That is, for them, the development of SMFE is an opportunity to revive small economies such as employment, profit sharing, capital accumulation, cultural and political empowerment, investment in public goods, and increased conservation of the forest ecosystem through long-term sustainable management. 

However, SMFE has not been able to drive its efficiency properly because of the following reasons:

1. The state expects large-scale projects to benefit more than small-scale ones, making it easier for the latter to obtain permission, and measures against illegal activities in the process have not been properly prepared.
2. Those who run micro-enterprises are not professional managers, so they need helpers who can maintain SMFE's philosophy while at the same time developing market competitiveness.

In response, the author argues that there is a need for a change in perception of SMFE from the perspective of demand, and a two-way investment from the supplier's point of view to strengthen the operator's capabilities.

I read about small businesses in the previous article, and it was interesting to find cases that were actually applied differently than before when the focus was on finance. In particular, I didn't know that there weren't many people working in our country, but I was surprised that there were more people who relied on forests than I thought.

What impressed SMFE was that this movement was used in combination with sustainable development. I think sustainable development is an example of good synergy in terms of economic growth, and micro-enterprise have good interests in environmental protection. If I had a chance, I wanted to look for more cases like this. If there is anything else I know about other business cases, I would like to hear it.

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