Action For Enterprise

Examples of Generic Market-based Solutions

TYPE	VALUE CHAIN CONSTRAINT/OPPORTUNITY	ILLUSTRATIVE SOLUTION
Technological / Product Development	small-scale farmers lack access to appropriate tools and machinery (technologies) which decreases their yield opportunity for equipment manufacturers to offer leasing of tools/machinery to MSME's and thereby improve product quality lack of technical skills of MSME's to produce to European buyer specifications reduces their income and market access	access to appropriate tools and machinery (technologies) for small-scale farmers provision of equipment leasing services for MSMEs training of MSMEs in technical skills to produce to European buyer specifications
Market Access	lack of linkages to large buyers decreases sales potential of MSME's lack of information on standards reduces MSME's ability to produce to buyer specifications, lack of marketing organizations or brokers limits market outlets for MSMEs, high transportation costs increases the price of MSME production	access to large-scale buyers for MSMEs provision of information to MSMEs on buyer specifications and standards access to new marketing channels for MSMEs access to affordable product transportation services for MSMEs
Organization and Management	inability of producers to organize for economies of scale limits their opportunities to access higher value markets, MSMEs lack ability and time to conduct accounting MSMEs lack skills to develop business plans high rejection rates result in loss of income for MSME producers and buyers	provision of group organization services for producers access to accounting services for MSMEs (differs from “training in accounting techniques”) training in business plan development for MSMEs training in quality management for MSMEs
Regulatory (Policy)	import taxes on inputs increases producer costs artificial price subsidies prohibit the emergence of MSME producers export tariffs increase exporter costs and decreases global competitiveness of the value chain lack of government contracting procedures that favor MSMEs reduces their opportunity to engage in public sector bids	12-15. provision of lobbying services to: reduce import taxes on inputs promote MSME start-ups/ small business development reduce export tariffs for exporters promote government use/ procurement of MSME products
Finance	farmers are unable to pre-finance improved inputs, opportunity for exporters to access commercial funding and increase their purchases from small-scale producers inability of MSMEs to provide adequate collateral decreases their access to working capital loans	access to input credit for small-scale farmers provision of working capital loans for exporters access to working capital loans for MSMEs
Input Supply	high prices of inputs restricts use by small-scale producers, use of poor quality raw materials by MSMEs results in inferior products unable to meet market demands, MSME's in remote rural areas lack access to inputs which reduces their productivity	provision of affordable inputs for small-scale producers access to good quality raw materials for MSMEs access to inputs for MSMEs in remote rural areas
Infrastructure	poor roads (or electricity, refrigeration facilities, telephones, etc.) increases the price of final products and makes competing with imports more difficult	provision of lobbying services to improve the availability and quality of rural roads access to cooling facilities for MSMEs

Types of Market Solution Providers

Individuals, private for-profit firms, small enterprises, local NGOs, parastatals, government agencies, industry associations, etc.
Value chain participants who provide solutions to MSMEs as part of a broader transaction or business-to-business relationship (e.g. intermediaries, exporters, input suppliers, etc.).