In recent years, Bangladesh has seen a worrying rise in extreme weather, with heatwaves posing a serious threat to the economy-especially for small businesses. While climate change is often viewed as an environmental problem, its economic effects are now strongly felt at the local level. Small and micro enterprises (SMEs), which make up over 90 per cent of all businesses and provide employment to a large part of the population, are particularly vulnerable to prolonged heat. Owners of small shops, roadside vendors, and local food stalls struggle to operate in extreme temperatures, facing reduced customer visits, higher costs, health risks, and lower worker productivity.
During heatwaves, people avoid outdoor markets and services requiring sun exposure. This directly impacts businesses reliant on face-to-face interaction, such as street vendors, open-air eateries, and retail shops, which often see sales drop by 30 per cent to 50 per cent, depending on heat intensity and location. In cities like Dhaka, small garment sellers and rickshaw pullers report days with almost no income as customers stay indoors during scorching afternoons. Previously linked mainly to monsoon season, sales slumps now occur more frequently and unpredictably, making business planning difficult. With temperatures exceeding 40°C in some areas, customer turnout plummets. Businesses dependent on daily deliveries of fresh produce, meat, fish, or raw materials face delays and rising transport costs. Women working in small home-based garment or food production units are especially at risk, often laboring in cramped, poorly ventilated spaces.
To tackle these challenges, climate resilience programs, heatwave preparedness, and emergency planning can help small business owners manage disruptions. Bangladesh's economic growth relies heavily on grassroots entrepreneurship, but climate shocks like heatwaves threaten this foundation. Promoting climate-resilient business models and ecosystems-particularly for SMEs-is vital for both environmental and economic sustainability. International donors, development agencies, and local authorities must collaborate to integrate heatwave adaptation into SME support strategies. Without targeted support-such as subsidies for cooling tech, better access to microloans, and flexible work hours during heatwaves-many small businesses may struggle to survive long term.
Anindita Debnath Arpa
Student
SBE, North South University
anindita.arpa@northsouth.edu