Description

In the field of private sector and value chain development, practitioners frequently come across dynamic firms that play a critical role in moving their industry and other value chain participants forward. The objective of this paper is to explore the topic of working with such lead firms in a value chain context.

The paper begins by defining a lead firm. This is followed by a discussion on the rationale and importance of working with lead firms to achieve sustainability and scale of impact with micro, small and medium-scale enterprises (MSMEs) as well as greater industry competiveness. The incentives and challenges of lead firms are then presented, followed by a discussion on how broad-based impact can be achieved. The final section explores the role of development organizations in developing and managing collaboration with lead firms.