IMPACT OF TENURE SECURITY ON HOME-BASED ENTERPRISES: OBSERVATIONS FROM TWO INFORMAL SETTLEMENTS IN KHULNA

Abstract

In Bangladesh, a widespread phenomenon of urban informal settlements is that the dwelling is not only used for shelter but also for income-generating activities, often referred to as HBEs (Home-based enterprises). These enterprises are themselves quite profitable to generate household income and meet the subsistence level of urban poor. However, the nature of HBEs often varies according to the different tenure conditions of settlements. The absence of tenure security coupled with fear of eviction discourages dwellers from investing in the spatio-physical development of housing, exacerbates the isolated nature of HBEs with less exposure to the streets, and hinders their access to credit, thereby impeding economic growth. To unfold this tenure-HBEs relationship, the study aims to investigate how the nature of HBEs is changing over time according to the various tenure forms, taking two informal settlements from Khulna as case studies. Firstly, this research identifies the typology of HBEs; secondly, it investigates the nature of HBEs; and finally, it assesses the economic contribution of HBEs under different tenure conditions. By adopting a mixed-method approach, this study collects both social and spatial data through face-to-face interviews, photographs, and observation. The study reveals that a certain degree of tenure security stimulates the nature of HBEs by scaling up the business, facilitating easy access to credits, initiating a well-connected spatial organization, and driving their spatio-physical and economic growth. The findings suggest that to strengthen the practice of HBEs in informal settlements, the government and concerned agencies should promote tenure upgrading and regularization programmes to generate livelihood opportunities.