IMPACT OF ESG INVESTMENTS ON SUSTAINABLE DEVELOPMENT OF MICROENTERPRISES: EVIDENCE FROM BANGLADESH

This paper examines environmental, social and governance (ESG) investments made by microenterprises in Bangladesh under a donor-supported project and evaluates their impact on performance. By analyzing ESG investments across 62 microenterprises in 40 districts, we found that agribusiness benefited the most, while manufacturing enterprises primarily gained from technical and marketing support offered through common service centers. These sector-specific results emphasize the necessity for tailored ESG investment strategies. We explore the experiences in Bangladesh within a theoretical framework that highlights the need for ESG financing alongside supportive skills and technological measures. Therefore, ESG measures should be integrated into the business strategies of microenterprises to ensure their sustainable development.