In developing countries the private sector mainly consists of micro, small and medium enterprises that generate a large share of employment and income opportunities. Often, however, their development potential remains untapped, as firms operate in isolation, are locked into uncompetitive production patterns and unable to approach dynamic business partners that could bring in new expertise and know how.
FUND RA aims to boost the development of a competitive private sector and contribute to poverty reduction by building sustainable linkages between small-size enterprises, their larger scale business partners and support institutions.
Linkages enhance enterprise competitiveness through the realization of economies of scale and scope and are a source of sustainability, as they increase the capacity of the economic actors to collectively react to crisis and turning points. Linkages also pave the way for broad-based and inclusive development, where poor entrepreneurs and workers participate in economic activities on fair terms.
Functions:
- Promote business to business linkages as well as between firms and institutions
- Foster theimplementation of socially environmentally responsible business practices
- Develop public private partnerships
- Formulate and disseminate tools and methodologies to implement projects.