May 31, 2007

New AMAP Paper on Guatemalan Horticulture and Handicrafts Published on microLINKS

ACDI/VOCA and the Louis Berger Group published a new paper on microLINKS called “Integrating Micro and Small Enterprises into Value Chains - Evidence from Guatemalan Horticulture and Handicrafts.” This study, developed under ACDI/VOCA's $2.5 million Accelerating Microenterprise Advancement Project Business Development Services (AMAP BDS) Knowledge and Practice Task Order, uses in-depth field interviews, a survey of buyers and producers, and a "bottom-up" perspective to investigate the nature, determinants and consequences of micro and small enterprise (MSE) participation in the textile handicrafts and high-value horticulture value chains in Guatemala.

The publication empirically tests the characteristics of value chain linkages that facilitate or inhibit the formation of collaborative interfirm relationships, both vertically (among firms at different levels of the value chain) and horizontally (among firms at the same level of the value chain). This is followed by an analysis of the impact of these vertical and horizontal relationships on MSE owners’ ability to innovate or upgrade their enterprises. The results indicate the importance of market information, interfirm communication, reduced transaction costs, risk-offsetting opportunities and effective group governance in building strong horizontal and vertical relationships that promote MSE upgrading and enhance the competitiveness of value chains.

ACDI/VOCA is a leader in value chain approaches to development and helps to increase incomes in poor communities and promote economic growth by enhancing performance and thereby the competitiveness of micro and small enterprises.

To read more about the report on microLINKS, click here.