Examples of Generic Value Chain Constraints/Opportunities
Type Value Chain Constraint/Opportunity
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
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
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
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
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
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 productivity of MSMEs
Infrastructure
  • poor roads (or electricity, refrigeration facilities, telephones, etc.) increases the price of final products and makes competing with imports more difficult
   [*MSME = micro, small, and medium-scale enterprises; including farmers]
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