diff --git a/packages/backend-common/src/config.ts b/packages/backend-common/src/config.ts
index 6f7500bb86..247eb593cc 100644
--- a/packages/backend-common/src/config.ts
+++ b/packages/backend-common/src/config.ts
@@ -23,7 +23,7 @@ import { loadConfig } from '@backstage/config-loader';
 export async function loadBackendConfig() {
   const paths = findPaths(__dirname);
   const configs = await loadConfig({
-    env: process.env.NODE_ENV,
+    env: process.env.NODE_ENV ?? 'development',
     rootPaths: [paths.targetRoot, paths.targetDir],
     shouldReadSecrets: true,
   });