The quantity of investment in oil, gas and mining (OGM) projects in developing countries over the next twenty years is likely to be much greater than total international aid flows. If this investment is designed and managed to maximize sustainable economic opportunities for local communities, it can represent a major contribution to the achievement of the Millennium Development Goals in many countries. Involving local businesses and especially small and medium enterprises (SMEs) in the project supply chain is a crucial part of this opportunity because of the vital role these businesses play in promoting job creation and distributing the benefits of economic development more widely.
The first part of the briefing note addresses four key questions: Why engage local enterprises in the project supply chain? How do you define local enterprises and what can they supply? What are the key challenges for supply chain managers and technical end users? How can these challenges be overcome?
The second part demonstrates a range of enabling measures that can facilitate the achievement of local enterprise participation, particularly through the modification of procurement policies, processes and documentation.
The briefing note was produced with the support and assistance of the International Finance Corporation’s Program for Eastern Indonesia SME Assistance (PENSA) in Indonesia.
More information:
- The Role of the Extractive Sector in Expanding Economic Opportunity
- Promoting small and medium enterprises for sustainable development
- SME Development: a vehicle to support entrepreneurship in the low-income segment
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