3.1.3. Organizing the Sub-Criteria

Competitiveness Potential

Market Demand and Growth Potential Match between Local Capacities and Competitive Advantage Potential For Achieving Competitiveness Opportunities For Linkages Government or Donor Interest/Existing Support Programs
  • Evidence of strong effective demand for products being produced in a range of markets (local, national, regional and/or international)
  • Buyers have ready market for products but are unable to meet demand
  • Industry has ability to compete against regional and international competitors
  • Local capacities match characteristics of demand that define competitive advantage (e.g., efficiency, differentiation and/or affect on demand) in short, medium and/or long-term
  • The main market for the product or service is growing and has long-term potential
  • Potential for technologies or management systems to increase production and/or services delivery efficiency
  • Potential for technologies, management systems or marketing efforts to effectively differentiate products
  • Potential for industry to increase and stabilize demand
  • Potential forward/backward linkages between large and small enterprise.
  • Large buyers looking for more efficient ways to engage MSEs as a source of supply.
  • Potential for third party service and products that support the growth of an industry (e.g., production inputs, finance, sector-specific services and non-sector specific services)
  • Positive government interest in a subsector (e.g., limited interventionist policies, low levels of or no subsidies, potential for positive linkages with government services, and favorable policies)
  • Existing programs that can provide synergy and complementary activities


Impact Potential

Number of MSEs Upgrading Potential Potential for Broader and Deeper Increases in Income and Wealth Creation Potential For Employment Generation
  • Number of MSEs operating in the subsector
  • Potential for increases in the number of MSEs that can participate and benefit
  • Potential for MSEs to upgrade their products and production processes
  • Potential for MSEs to deliver higher value added functions along the value chain
  • Potential for MSEs to move to a higher value added channel within a subsector
  • Potential for increasing revenues at the industry and firm level
  • Potential for increasing returns on the MSE assets (i.e., land, animals, location, and capital (i.e., financial, labor, social, and human).
  • Potential for increasing incomes and wealth in the near, medium, and longer terms
  • Potential for enterprises (large and small) to create new employment opportunities as the subsector develops or expands.


Industry Leadership

Nature of Industry Leadership with MSEs Nature of Industry Leadership for Broader Industry Growth Potential for Broader Industry Leadership
  • Willingness of lead firms to invest in industry growth including MSE producers (e.g., embedded services, financial services)
  • Transparency of relationships with MSEs (e.g., clarity of responsibilities through contracts/written terms and consistency of enforcement)
  • Commitment and willingness to address social constraints (e.g., HIV/AIDS, gender inequity, cash-flow needs) to MSE participation and benefit in the long-term
  • Long-term commitment to industry and country
  • Interest in fostering more efficient third-party services
  • Willingness to work with other lead firms to solve industry-wide problems
  • Number of lead firms
  • Potential for increasing the number of strong lead firms in an industry