Supporting forest sector micro, small and medium enterprises at scale
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Between 2016-2021, the FAO-EU FLEGT Programme funded 96 MSME support projects in 20 countries globally. These projects reached 3,300 MSMEs in total, but the 41 projects with a specific capacity building focus were able to train an average of 71 MSMEs per project. Although these projects were instrumental in helping beneficiaries to operate legally and access new markets, the number of MSMEs reached remains small compared to the sheer number that require support in tropical timber-producing countries. The current scale of engagement is not entirely limited by investment and resources, but also by several challenges that make it inherently difficult to effectively engage MSMEs.
As part of a Programme-wide global experience capitalisation process, staff members conducted interviews with local partners and, where possible, end beneficiaries of the projects. Local partners were asked to reflect on strategies that could have allowed them to reach more MSMEs in their projects, and on the broader enabling conditions that would need to be put in place to enable MSMEs to participate in legal timber production at a larger scale.
Through these interviews, and the collective experience of these MSME support projects, the Programme has identified strategies for overcoming these challenges and that could be adopted by future interventions to reach tens of thousands – rather than hundreds – of MSMEs. These strategies are discussed in the paper.
