USAID: The Value Chain Approach and Microenterprise Development

The USAID Microenterprise Development (MD) office value chain approach is a powerful tool to create wealth in poor communities and for promoting poverty-reducing economic growth. MD's value chain approach seeks to understand how and when MSEs can successfully compete in growing value chains, targeting sectors where the poor are concentrated—agriculture, natural products, and labor-intensive industries. The approach then works to improve the competitiveness of industries (or value chains) in which significant numbers of small firms participate while addressing the constraints that hinder MSEs’ potential contributions to and benefit from value chain growth.