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2.5.4. Promoting Commercially Viable Supporting Markets

Facilitating Demand for Supporting Markets In addition to looking at the constraints of supporting-market businesses, development practitioners should address the constraints faced by value chain actors when acquiring products or services. Value chain actors who are unaccustomed to purchasing a particular product or service are likely constrained by a lack of:

2.7.2. Benefits of Supportive Relationships

Ways in which Supportive Relationships Contribute to Competitiveness Supportive relationships contribute to industry competitiveness in a number of ways. In particular, they:

5.2.7. Hamre Framework

Selecting Pro-Poor Value Chains This paper serves as a guide [1] on the selection of value chains that benefit the poor. The goal of this framework is to determine how pro-poor a value chain is during selection. It adopts a blend of the two definitions of pro-poor (i.e. “reduction in inequality” and “absolute growth”).

2.7.6. Trust in Inter-Firm Relationships

Trust is expressed as a firm owner’s level of confidence when exposed to the risk of potential harm from another firm. For example, trust is the level of confidence an exporter has that its suppliers will make on-time deliveries. The exporter risks being harmed if its suppliers are unreliable, because then the exporter will be unable to deliver on advance contracts with its own buyers and the exporter may lose sales (and clients).

5.6.5. Gender Dimensions Framework

Whereas many gender frameworks are oriented specifically to understanding women's role as producers at the household level, the gender dimensions framework (GDF) is built to identify gender issues at all levels of the value chain. The GDF was adapted from another analytical tool, the Six Domains for Gender Analysis[1] that is used by USAID for its work in social sectors. The GDF looks at four key factors that shape gender within value chains:

5.2.2. Interaction between Informal and Formal Rules

Informal rules have an intimate relationship with formal laws, policies and standards. Formal rules often exist, and are most effective, when they codify informal norms that are already widely accepted. Equally, informal rules, norms and conduct do not only emerge from past traditions and habits influenced by culture, religion and gender: sometimes they also emerge as a response to formal institutions that fail to function to the benefit of the majority or a dominant group.

5.5.2. PSD-IAI Assessments

Conducting a good impact assessment of a value chain project involves the following steps (the steps assume two research rounds—a baseline and follow-up):

5.2.10. The BizCLIR Tool Framework

Introduction The BizCLIR assessment methodology reviews selected business enabling environment through four “lenses” – four dimensions: the legal framework, implementing institutions, supporting institutions, and social dynamics.

4.3.10. Improving the Food Security of Vulnerable Populations with a Value Chain Approach

Background In many contexts there is significant overlap between vulnerability, poverty and food insecurity.[1] This is unsurprising, as food insecurity is typically a key contributor to vulnerability. Food insecurity exacerbates vulnerability both in the short run (e.g. inadequate food forces people to sell their productive assets) and long-run (e.g. poor nutrition creates cognitive challenges that lower career earning potential).

4.1.2. Common Constraints in Conflict-Affected Contexts

Examination of common constraints in conflict-affected contexts include transport, infrastructure, security, rapidly changing policy environments, shifting power relationships, weak institutions of market oversight, lack of trust, and short time horizons.

5.5.1. Impact Assessment

For more information on impact assessment methodologies, see the Impact Assessment Primer Series article #2, “Methodological Issues in Conducting Assessments of Private Sector Development Programs” and Primer Series article #3 “Collecting and Using Data for Impact Assessment.”

3.2.2.1. Backward Market Research Process

Once Phase 1 is completed and clear choices have been made about what markets warrant focused research, planning for a major primary research campaign can begin. In many cases, this planning starts with a vague definition of the problem at hand or a statement about the lack of information for a certain market or product.

3.2.2.4. Engaging End Market Buyers

The end-market buyers who provide valuable input for developing a value chain’s competitiveness strategy may not be its most suitable clients.

5.3.1.6. Phase 1 Tools: Communications

Single vs. Double Loop Learning One of the biggest challenges in upgrading the competitiveness of value chains is promoting collaboration and even rational discussion among value chain actors who may have never worked together before and probably do not trust each other.

5.3.2.3. BEE Ranking and Benchmarking

Ranking and Benchmarking Reports International BEE ranking and benchmarking reports—which compare enabling environment conditions across regions or countries—have gained popularity in recent years as effective tools for conducting BEE baseline assessments, facilitating dialogue and the identification of key competitiveness constraints or opportunities, and providing a means of measuring ongoing improvements in the enabling environment.

5.3.1.9. Phase 2 Tools: Communications

Once target markets are understood and a strategy for activating new market segments emerges, active communication and engagement of value chain stakeholders is critical to a real understanding of the results and sufficient confidence in the data to make business decisions that will allow firms to pursue the new proposed strategy.

5.3.1.1. Phase 1 Tools: Context

Porter’s Diamond of National Advantage Michael Porter’s Diamond of Competitive Advantage is an excellent way to gain a quick strategic view on the status of an industry. The four components of the diamond can be used to analyze the current domestic industry and identify areas of relative strength and weakness relative to similar industries in other countries. Each section of the diamond works as a system and reinforces the inputs from the other attributes.