Enhancing competitiveness and opening up access to international markets
UNCTAD’s Business Linkages Programme aims to facilitate the creation of new partnerships and strengthen existing relationships between the affiliates of foreign companies and domestic small and medium-sized enterprises (SMEs) in developing countries, thereby enhancing their sustainability.
The Programme is based on the mutual interests of all parties involved.
On one side, business linkages can serve as one of the fastest and most effective means of upgrading domestic enterprises. They improve competitiveness and enable access to international markets, financing, technology, management skills, and specialized knowledge.
On the other side, by partnering with local firms, multinational enterprises (MNEs) can reduce transaction and operational costs, increase flexibility, and better adapt technologies and products to local conditions.
As a result, both MNEs and domestic firms, as well as the overall economy in which they operate, can benefit directly from this Programme.
Features: Working locally
UNCTAD assists host countries that make a request for the development of national programmes for MNE-SME linkages. To achieve this, UNCTAD works with local development agencies and business service providers, foreign affiliates of MNEs, partner ministries and other stakeholders.
Seven country programmes have been implemented in Argentina, Benin, Brazil, Mozambique, Peru, Tanzania, Uganda and Zambia.
Furthermore, Empretec centres that run UNCTAD's entrepreneurship development programme are increasingly incorporating business linkages in their services portfolio.
It is normal practice for the business linkages team to work closely with the purchasing companies, in conjunction with private sector organizations (trade associations, industry federations, etc). Only those companies that meet the requirements or demonstrate a willingness to develop are selected to participate in the linkage programme. A careful selection of potential suppliers is essential to gaining the confidence and participation of the large purchasing companies.
Benefits: Increasing productivity
Objectives: Expanding relationships
UNCTAD’s Business Linkages Programme improves the performance, productivity and efficiency of local suppliers through training, mentoring, information exchange, quality improvements, innovation and technology transfer.
UNCTAD also assists developing countries’ governments and other stakeholders to build the enabling policy environment, and supports networks of business development and other service providers, based on the analysis of international experience and best practices.
MNEs, on their side, are increasingly concentrating on their core operations and outsourcing those in which they do not have a competitive advantage. Thus, they have a strategic interest in developing the competences of local suppliers, and are expected to take part in cost–sharing with a view to the operational sustainability of the programme.
Contact
For further information on this topic, please contact us.