Feed the Future
This project is part of the U.S. Government's global hunger and food security initiative.

Vertical Linkages

Micro and small enterprises (MSEs) are vertically linked to a varied range of market actors including wholesalers, retailers, exporters, traders, middlemen, input dealers, suppliers, service providers and others. The nature of vertical linkages—including the volume and quality of information and services disseminated—often defines and determines the benefit distribution along the chain and creates incentives, or constraints, for firm-level upgrading, defined as innovation to increase value added. Moreover, the efficiency of the transactions between vertically linked firms in a value chain affects the competitiveness of the entire industry.

Read more about Vertical Linkages in the Good Practice Center.