Market Development Sector Approach

Market Development Sector Goal

Support at-risk communities to sustainably develop strong market systems that increase incomes and productivity while reducing the effects and risks of disaster or conflict.

Fundamental Market Approaches

Mercy Corps employs three main approaches throughout its market development programming. The first is a pro-poor development strategy that ensures that at-risk and marginalized populations are able to develop businesses and participate in market upgrading. Bridging the gap between more competitive economic actors and the economically disadvantaged alleviates tensions and ensures greater long-term sustainability and productivity.

The second principle of Mercy Corps’ market development programming is a sustainable market-driven approach that leverages existing market forces and partnerships with the private sector. To ensure that increases in the supply of products and services are matched by corresponding market demand, Mercy Corps supports entrepreneurs to analyze market demand (volume, quality, price etc) before creating supply. This market-led strategy ensures projects capitalize on market-driven production to avoid market saturation or the wasting of valuable and often scarce human and natural resources.

Mercy Corps also takes a multifaceted approach to program interventions, simultaneously targeting actors and institutions at many levels along the value chain, offering adaptable and sustainable solutions for immediate relief and long-term growth. This diverse menu of initiatives provides market-upgrading resources at the local, national and international levels, strategies and support for start-up entrepreneurs, as well as development and recovery opportunities for established businesses. All of which encourages equal momentum for economic recovery and growth to all sections of the market.

Methods and Approaches

Business Development helps entrepreneurs invest in upgraded business activities, learn new skills and access greater market opportunities. Activities include work with industry groups (or clusters) and areas linked by trade (or ‘economic corridors’) for a greater effect. Business development helps businesses solve their own problems and work cooperatively.

Facilitating Support Markets , which provide the infrastructure and services that industries need to function, compete and grow: financial services, transport, storage, shipping, marketing facilities, communications, information services, legal services, technical assistance and technology for development (e.g. rural radio, cell phone alerts, SMS messaging and mobile banking).

Value Chain Development improves the function of a series of businesses in a chain of value-adding enterprises delivering a product to an end-market: e.g. input supplier → producer → processor → wholesaler → retailer → consumer (exporter). Value chains exist within market sectors and are affected by the business environment in which they function.

Market-Led Workforce Development prepares job seekers to fulfill employment requirements and helps industry improve its competitiveness through more effective employment practices. Vocational training is linked to clear demand in the job market; ensuring training responds to a need and prepares people to provide a quality service.

Local Participatory Economic Development encourages collaboration and project ownership by all acting entities within an economic market, i.e. government, the private sector, civil society and the local community.

Improving Market Access for the Poor ensures that all levels of the community benefit from increased economic development. To be actors in market systems, people need access to market resources and services and the tools and training to maximize that access.

For a complete explanation of our sector approach, please see the document posted below: