Value Chains and Value Chain Analysis
A Signature Value Chain Approach to Strengthen Value Chains & Promote Economic Opportunities
ACDI/VOCA uses value chains, specifically value chain analysis, to understand private sector development in emerging economy settings to jumpstart economic growth and poverty reduction. ACDI/VOCA's value chain approach is unique in that it uses a participatory, stakeholder-driven approach to exploit opportunities for investment and growth in industries with high levels of micro and small enterprise (MSE) involvement.
The value chain approach analyzes the firms in a market chain—from input suppliers to final buyers—and the relationships among them. It analyzes the factors influencing industry performance, including access to and the requirements of end markets; the legal, regulatory and policy environment; coordination between firms in the industry; and the level and quality of support services.
Relationships among firms in an industry can facilitate production and marketing efficiencies and enable the flow of information, learning, resources and benefits. ACDI/VOCA works with industry stakeholders to strengthen or restructure relationships and address resource constraints to increase the global competitiveness of the industry and the ability of small firms to contribute to and benefit from this competitiveness.
Working with the U.S. Agency for International Development (USAID), other donors, local governments and industry leaders, ACDI/VOCA promotes MSE access to critical technical, financial and business services to increase efficiency, improve quality and benefit from new markets. ACDI/VOCA provides technical assistance at the firm level to improve capacity to benefit from market opportunities, better inputs and more productive technology. At the market level, ACDI/VOCA alleviates constraints along competitive value chains by supporting suppliers of critical support services and by improving the business enabling environment to increase the contribution of the industry to economic growth and poverty reduction.