Market Linkages

Market Linkages

Market linkages represent one of the best ways for SMEs to enhance their competitiveness and acquire a series of critical missing assets, such as access to international markets, finance, technology, management skills and specialized knowledge. Markets Linkages connect the organizations involved in producing the products and delivering the services for any and every market. As such when linkages are absent or weak, markets become inefficient.

Market linkages that work well help large firms and implementing agencies to reduce input costs, increase specialization and flexibility, thereby bringing down costs and increasing efficiency. They also enable better technology transfer, overcome market failures and improve the domestic multiplier effect by keeping foreign exchange in the country.

Linkages allow firms to increase local integration, provide access to local knowledge and provide companies with a license to operate, resulting in a positive social and economic impact in the wider community.