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Manual gives step-by-step procedures on how to analyze sub- sectors in the economy, and explains how this can lead to the promotion of micro and small-scale enterprises (MSEs) which create livelihoods for the poor. Sub-sector analysis offers a framework to evaluate market dynamics and plan projects for cost-effective interventions including the supply of credit. Opportunities for intervention can then be undertaken by a local organisation, NGO, or international donor agency. Components of the subsector approach include:

• looking at the broad system in which MSEs operate, including large firms that compete with MSEs, in order to understand opportunities and constraints
• examining competition among small firms and coordination among firms active in the subsector
• identifying cost-effective interventions as those that influence large numbers of firms with a single policy or action, known as “leverage”

Argues that there are benefits to the poor if leverage can be identified through sub-sector analysis, since intervention can then help large numbers of people rather than just handfuls.

Publication Date
11-01-1991 Eastern Time (US & Canada)

Content Language
English