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grant sources. UNCDF and UNDP have supported Joint Programmes in nine post-conflict
countries. 41
Many crisis-affected people, including women, youth, and other marginalized or vulnerable
groups, would like to become entrepreneurs and could make valuable contributions
to economic recovery in such a role. Often, however, these individuals lack the information,
connections, and confidence that they would need in order to succeed in business
and are therefore inclined to seek low-wage employment instead. In these situations,
UNDP can usefully support the establishment of business development services that
are relevant and affordable for crisis-affected people. As defined by the Committee of
Donor Agencies for Small Enterprise Development, business development services
are “services that improve the performance of the enterprise, its access to markets, and
its ability to compete. The definition … includes a wide array of business services, both
strategic and operational. Business development services are designed to serve individual
businesses, as opposed to the larger business community.” 42 Such services support the
improvement of both the day-to-day management of businesses and their performance
over the medium- to long-term.
Business development services include training, consulting, mentoring, the provision of
information, linkages to financial services, and platforms for dialogue. Providers of business
development services support marketing, communications, and technology development
and transfer and facilitate networking among firms and with the government, development
partners, NGOs and community-based organizations, business associations, and
training institutions. These providers of business development services also often help
to establish associations of micro and small businesses. Business development services
can provide an entry point for promoting green initiatives—such as recycling, pollution
control, garbage reduction, alternative energy, reforestation, or ecosystem restoration—
when adequate market demand exists or can be created.
4.2.3 Programming for inclusive private sector development in crisis
and post-crisis situations
In crisis and post-crisis situations, the private sector is often hampered both by failures of
markets and by failures of government. Ideally, private sector development programming
will address both of these concerns, though donors tend to prioritize programming to
address one or the other, adopting either a top-down or a bottom-up approach. 43 Effective
programming for inclusive private sector development requires continual assessment
of local markets, responsive and flexible implementation, systematic monitoring and
evaluation, and strong partnerships.
41 Examples of Joint Programme documents are
available at www.uncdf.org/english/microfinance/sectorDev/index.php#prog_docs.
42 Committee of Donor Agencies for Small Enterprise
Development. Business Development Services
for Small Enterprises: Guiding Principles for Donor
Intervention. 2001.
43 Donor Committee for Enterprise Development.
Report on Expert Meeting on Private Sector Development
in Post-Conflict Situations. 2008.
4.2.3 (a) Situation assessment
The livelihoods and economic recovery assessment (see Chapter 2) will provide information
on the extent to which private sector development support is appropriate for the local
context and the opportunities and constraints that are likely to be encountered during
implementation. Supplementary information is generally necessary before commencing
related interventions.
Inclusive market development. The design of interventions for inclusive market development
requires a market analysis that identifies the markets, sectors, and value chains
where (a) crisis-affected people are or could be strongly represented as entrepreneurs
and employees, (b) potential linkages to wider markets exist, and (c) market demand and
Livelihoods & Economic Recovery in Crisis Situations