Challenges
Although economic growth is an essential factor for the private sector to create jobs and income, it requires more to particularly benefit the poor population. Respective strategies towards inclusive growth need to strengthen micro, small and medium enterprises (MSMEs) so that they build linkages to dynamic markets. These ventures account for the majority of economic activities and employment opportunities for the poor in developing countries. However, MSMEs often face market access and thus growth constraints due to their size and capacities. Such limitations need to be addressed to strengthen the businesses’ economic potential and competitiveness, enabling them to become part of dynamic markets.
GFA concept and services
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For more than 25 years, GFA teams have been supporting private sector stakeholders, particularly MSMEs, through a threefold approach that translates into broad-based inclusive growth. First of all, our experts support reform processes that improve the very framework of economic development. Also, they strengthen demand-oriented and responsive business and financial support institutions. Last but not least, they offer capacity development to entrepreneurs who strive to boost their competitive edge.
Business environment - GFA consultants facilitate a conducive business environment for private sector investment and competitiveness by reducing legal, regulatory and administrative constraints. Our sevices comprise assessing regulatory impacts, and simplifying business registration and licensing procedures. Also, we improve business-related regulations, including their respective delivery mechanisms and organizational arrangements.
Business and financial support institutions - Our experts facilitate better access to market information, business services and finance. They improve the institutional arrangements that promote MSMEs in their strategic and operational business activities. We help business membership organizations, financial institutions, providers of business development services (BDS) and public support facilities become more responsive to MSMEs’ demands. Also, we encourage such institutions to create innovative services and market them accordingly, and to develop economically viable business models for service delivery.
MSME capacity development - GFA creates awareness among MSMEs on how to improve competitiveness in domestic and foreign markets. In this respect, we pursue a systemic approach through collective action in a cluster or value chain, often driven by a larger lead firm. Developing businesses’ ability to collaborate in horizontal and vertical networks has proven to be a successful approach as it creates opportunities to benefit from economies of scale. Also, since it enhances collective learning it stimulates innovation and technological upgrading, often in collaboration with additional institutional stakeholders.
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