The integration of micro-enterprises into local value chains

Beatrice Tschinkel

Publication: ThesisDoctoral thesis


The objective of the study is to identify how micro-enterprises can be integrated into local value
chains by using the so-called "value chain approach". The "value chain approach" has become a
relatively popular approach among donor agencies and NGOs engaged in Private Sector
Development in recent years, being based on insights from studies on global value chains.
The study includes investigation into the following points:
1) Which business linkages exist among micro-enterprises and with enterprises of different sizes
and sectors, and how are they related to the upgrading process of micro-enterprises?
2) What influence does the legal status of micro-enterprises have on the development of business
linkages and on the upgrading process?
3) How can the development of business linkages and the upgrading process (and, therefore, the
integration into value chains) be supported and enhanced within the framework of PSD?
The empirical study was conducted in Uganda. It includes a combination of qualitative and
quantitative approaches: (1) a questionnaire-based survey among micro-entrepreneurs, and
(2) expert or key informant interviews, using a semi-structured interview guideline.
The study provides an assessment of the relevance and applicability of the "value chain approach"
to micro-enterprises and local value chains in the context of a developing country characterised
by low levels of industrialisation, as well as policy recommendations for practitioners (from public
and private sectors, as well as donor community, NGOs and civil society). Furthermore, the study
highlights the importance of the issue of informality of micro- and small-scale enterprises. (author's abstract)
Original languageEnglish
Awarding Institution
  • WU Vienna
Publication statusPublished - 1 Apr 2011

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