Market Assessment

Agribusiness SMEs in Malawi. Assessment of Small and Medium Enterprises in the Agricultural Sector and Improved Access to Finance in Malawi, USAID, 2014

    Description
    his assessment of agri-business small and medium enterprises (ASMEs) in Malawi found a sector with diversified business ownership, in which owners commonly operate multiple businesses and can be classed as ‘portfolio’ owner-managers spanning both agri-business and non-agri-businesses. A portfolio enables them to move resources to address cashflow shortages and seasonality in each business, manage uncontrollable downside risks by moving resources from businesses affected by such a risk, and manage growth opportunities by investing in businesses that are making most progress. A key implication is that it is difficult for public sector and donors to invest in specific value chains, as owners move resources within a portfolio of businesses that span more than one value chain and may include non-agri-businesses. The analysis is particularly focused on ASME access to finance (A2F), use of business development services (BDS), use of information and communication technology (ICT), collaborating and clustering (C&C) and the enabling environment (EE).