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Promoting TNC-SME linkages in Brazil BUSINESS LINKAGES
Promoting TNC-SME linkages in Brazil
BUSINESS LINKAGES
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Development Objective
To promote economic and social development by enhancing local productive capacity and the competitiveness of the domestic enterprise sector through the creation and deepening of fair and sustainable business linkages between foreign affiliates and Brazilian TNCs and localSMEs.
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Objectives
Create employment, reduce poverty and increase sustainability of livelihood through establishing and deepening demand oriented business linkages between TNCs and localSMEs, as an effective way to upgrade SME capabilities, promote growth and increase competitiveness of local SMEs – with specific focus to the North Eastern regions of Brazil.
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Main Stakeholders
UNCTAD – Geneva/SwitzerlandGTZ – Eschborn/GermanyFDC – Nova Lima/BrazilEthos Institute - Sao Paulo/Brazil
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Main Activities
Improve the regulatory environment for sustainable business linkages Motivate TNCs to establish new or deeper sustainable business linkagesUpgrade SMEs, including through BDS providersShare best practices in sustainable business linkages
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Expected Results (1)
A favorable environment for sustainable business linkages establishedMobilization of companies for the establishment of demand driven business linkages achievedOpportunities for creating new and deepening existing sustainable business linkages identifiedCapacity of local BDS providers supporting implementation of sustainable business linkages strengthened
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Expected Results (2)
BDS services to SMEs being providedBest practices documented and multiplied Ultimately a contribution to Brazil's Zero Hunger program presented in an annual meeting of representatives of participating firms and relevant ministers
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Beneficiaries
Domestic SMEs;Private sector in general through improved policy framework, a more vibrant business environment, and increased attraction for FDI;Governments through a broader and more diversified tax base.
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Institutional setupSTEERING COMMITTEE
UNCTAD, FDC, Project Director, Ethos, GTZ,
BUSINESS LINKAGE CENTRE
BDS Provider - 1 BDS Provider - 2 Financial ServicesProvider -3
Business Linkage 1
SME 1
TNC 1
Business Linkage 2
SME 2
TNC 2
Business Linkage 3
SME 3
TNC 3
Advisory BoardUNCTAD, FDC, Ethos, GTZ, Project Director,
Banks, Government,IPAs, TNCs
Linkage Promoters
Programme Director
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« Latest News – Brazil» (1)
Philips AmazôniaSupplier Certification Project
Technological and financial support for ISO 9001 and/or ISO 14001 Certification Processes
Project involves 27 ISO 14001 and 5 ISO 9001 certifications
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«Latest News – Brazil » (2)
BASFSupplier Evaluation and Qualification”Program (AQF)
Supplier evaluation through questionnaires and audits
1st Phase: 9 subcontractors selected for upgrade
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« Latest News – Brazil » (3)
FIEB (State of Bahia Federação das Indústrias)
Cooperation with FIEB PCF Program (Programa de Capacitação deFornecedores)
PCF objective: increase volume and quality of business between large companies and small suppliers of industrial products and services
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« Latest News - Uganda» (1)
Linkage Opportunities with:
Uganda Breweries Ltd.Upgrading of 200 barley farmers in Kapchorwa, through the KapchorwaCommercial Farmers Association, to run farming as a business
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« Latest News - Uganda» (2)
MTN Uganda Limited (Telecommunication)Upgrading of 10 current dealers in business skills
Mukwano Group (Agro-Processing)Upgrading of 10 current distributors in Northern Uganda through provision of business development services
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« Latest News «
… and more projects in the pipeline!
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ContactsProject Director: Arnaldo Flaks
+55-11-3257 [email protected]
Instituto ETHOS: Caio Magri
UNCTAD: Jacques Ferrière
+41-22-917-4204
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Why Join?
“Win-Win Opportunities” for SMEs and TNCsthrough Business Linkages
Strengthen Corporate Responsibility
Use Business Linkage Programme as an effective Linkage Promoter
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Need for TNC Support
Identify linkage opportunities with local SMEsProvide technical and managerial advice (“SME-Upgrading”)Put forward corporate representative on the advisory board
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Additional Information
Backup
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Roles and ResponsibilitiesProject Steering Committee
Includes core members of the project, UNCTAD, Project Director and key counterparts.Has overall responsibility for project oversight.Develops policies and strategies for project.
Advisory BoardIncludes key stakeholders: regional development agencies, representatives of state governments, IPAs, and other relevant entitiesProvides general advice & support to the Steering Committee on orientation of the project.
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Roles and ResponsibilitiesProgramme Director
Assists in identifying potential linkages; oversees their implementation through provision of technical business services and assistance that will make SMEs competitive and linkage-ready.Follows-up with linkage activities on a day-to-day basis and continuously learns from and documents its experience.
TNCsPromote linkages, partnerships, and encourage programmes that support the creation of small and medium-sized enterprises;
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Roles and ResponsibilitiesBDS Providers
Working with the TNCs, BDS providers shall develop a range of business services to upgrade SMEs
Government/MinistriesEstablish a conducive business environment for SME development. Encourage and/or support the development of business development services (BDS) providers;Effective policies: encourage foreign direct investment (FDI), local supplier development;
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Roles and ResponsibilitiesInvestment Promotion Agency
Provides policy analysis and advices on creation of a favourable business environment for business linkages between TNCs and SMEs. Publishes results to help attract quality FDI.
UNCTADAdvises on the right policy environment for business linkages based on the analysis of international experience and best practices;Provides expertise and experience from successful business linkage cases in other countries;Helps mobilize funds, provides technical expertise, monitors implementation, assures quality control
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Roles and ResponsibilitiesETHOS
Provides expertise in the area of Corporate ResponsibilityIdentifies Business Linkages opportunities and assists in their implementationProvides inputs to the analysis of international experience and good practices (survey)
FDCAssesses the current stage of TNC-SME linkage activities in Brazil (survey)Identifies Business Linkages deals and helps facilitating these linkagesProvides expertise in the area of clusterdevelopment, value chains and technology transfer inBrazil
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Roster of Good Practices
Initiating & supporting of linkage promotion programmesSupporting of linkage activitiesProviding access to markets & financeProviding feedback, coaching & mentoringContributing to technology transfer
