29/06: Business linkages: building connections with local enterprises
As the world becomes ever more globalised, international businesses are faced with an urgent need to forge stronger ties to the local communities in which they operate.
While these challenges are particularly pronounced for foreign firms with affiliates in developing countries, they are relevant to domestic developing country firms as well.
In developing countries, business linkages with local small-medium enterprises (SMEs) - including procurement, distribution, and sales - offer large firms an avenue through which to address some of these concerns.
The challenges for businesses, however, are in the implementation. Many large firms are, in principle, interested in developing relationships with local SMEs - however, such relationships can also be costly to form and maintain, and as a result, they rarely develop easily or smoothly.
A new publication by IBLF, Harvard University's Kennedy School and the International Finance Corporation explores some of the challenges and opportunities in the practice and scale-up of business linkages between large firms and small-medium enterprises in developing countries.
Business Linkages: Lessons, Opportunities, and Challenges provides 21 case studies from companies leading in this area, and highlights lessons from their experiences.
1. Minera Yanacocha (Newmont and IFC)
2. Eagle Lager, Uganda and Zambia (SABMiller)
3. SMEs in the value chain (National Business Initiative)
4. Economic linkage program in Rajasthan, India (Cairn India and IFC)
5. Prominp, Brazil (Petrobras and Partners)
6. Private sector initiative, Sub-Saharan Africa (SBP)
7. Anglo Zimile, South Africa (Anglo American)
8. Agricultural supply chain improvement, global (Ecom Agroindustrial Corporation)
9. Gulf of San Jorge SME program, Argentina (Pan American Energy)
10. Partnership for enterprise development in Africa (UNIDO and Microsoft)
11. SME development and linkages in Chad (ExxonMobil and IFC)
12. Vietnam Business Linkages Initiative (International Business Leaders Forum)
13. ACG/BTC linkages program, Azerbaijan (BP and IFC)
14. Diavik Diamond Mines, Inc, Northwest Territories, Canada (Rio Tinto)
15. Supply and distribution linkages with SMEs, global (Nestle)
16. Barclays microbanking, Ghana (Barclays Ghana with the Ghana Cooperative Susu
17. Collectors Association and Ghana Microfinance Institutions Network)
18. Distribution and retail linkages, Global (The Coca-Cola Company)
19. Aspire SME facilities in Africa (Shell Foundation and GroFin)
20. Empowering micro, small and medium retailers, Brazil (Tribanco)
21. Sustainable tea initiative, Kenya (Unilever and Kenya Tea Development Agency)
22. Small business development group, Kazakhstan (Chevron)
While these challenges are particularly pronounced for foreign firms with affiliates in developing countries, they are relevant to domestic developing country firms as well.
In developing countries, business linkages with local small-medium enterprises (SMEs) - including procurement, distribution, and sales - offer large firms an avenue through which to address some of these concerns.
The challenges for businesses, however, are in the implementation. Many large firms are, in principle, interested in developing relationships with local SMEs - however, such relationships can also be costly to form and maintain, and as a result, they rarely develop easily or smoothly.
A new publication by IBLF, Harvard University's Kennedy School and the International Finance Corporation explores some of the challenges and opportunities in the practice and scale-up of business linkages between large firms and small-medium enterprises in developing countries.
Business Linkages: Lessons, Opportunities, and Challenges provides 21 case studies from companies leading in this area, and highlights lessons from their experiences.
1. Minera Yanacocha (Newmont and IFC)
2. Eagle Lager, Uganda and Zambia (SABMiller)
3. SMEs in the value chain (National Business Initiative)
4. Economic linkage program in Rajasthan, India (Cairn India and IFC)
5. Prominp, Brazil (Petrobras and Partners)
6. Private sector initiative, Sub-Saharan Africa (SBP)
7. Anglo Zimile, South Africa (Anglo American)
8. Agricultural supply chain improvement, global (Ecom Agroindustrial Corporation)
9. Gulf of San Jorge SME program, Argentina (Pan American Energy)
10. Partnership for enterprise development in Africa (UNIDO and Microsoft)
11. SME development and linkages in Chad (ExxonMobil and IFC)
12. Vietnam Business Linkages Initiative (International Business Leaders Forum)
13. ACG/BTC linkages program, Azerbaijan (BP and IFC)
14. Diavik Diamond Mines, Inc, Northwest Territories, Canada (Rio Tinto)
15. Supply and distribution linkages with SMEs, global (Nestle)
16. Barclays microbanking, Ghana (Barclays Ghana with the Ghana Cooperative Susu
17. Collectors Association and Ghana Microfinance Institutions Network)
18. Distribution and retail linkages, Global (The Coca-Cola Company)
19. Aspire SME facilities in Africa (Shell Foundation and GroFin)
20. Empowering micro, small and medium retailers, Brazil (Tribanco)
21. Sustainable tea initiative, Kenya (Unilever and Kenya Tea Development Agency)
22. Small business development group, Kazakhstan (Chevron)
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