In order to respond effectively to market opportunities, micro and small enterprises (MSEs) and industries need to innovate to add value to products or services and to make production and marketing processes more efficient. These activities are known as upgrading. Firm-level upgrading can provide MSEs with higher returns and a steady, more secure income through the development of knowledge and the ability to respond to changing market conditions. Upgrading also leads to industry competitiveness and to national economic growth. Upgrading at the industry-level focuses on increasing the competitiveness of all activities involved in the production, processing, and/or marketing of a product or service and mitigating the constraints that influence value chain performance.
Read more about Upgrading in the Good Practice Center.