Private Sector

Why private sector development? 

Private enterprises are the backbone of a national economy and play a critical role in helping achieve the Sustainable Development Goals (SDGs). Through Private Sector Development (PSD), SDC aims at creating incentives for sustainable and inclusive private-sector activities, providing economic opportunities of quality to poor people, in particular youth and women (SDG 5), at scale. Strengthened private sector enterprises are an important driving force in the move to create inclusive jobs and income opportunities (SDG 8) and ultimately contributing to poverty alleviation (SDG 1). 

What are the aims? 

When promoting private sector development, SDC aims at encouraging the growth of properly functioning markets. To this end, various policy components and measures are typically combined, including: the reduction of obstacles to economic activities in the formal sector, promotion of a reliable financial sector (also adapted to the needs of small and micro enterprises), strengthening public administration capacities, improving the range of vocational training opportunities, or developing an inclusive dialogue between the private and public sector.

How are they achieved? 

The SDC bases all its private sector development activities on a Market Systems Development (MSD) Approach, or also known as Making Markets Work for the Poor (M4P). The approach provides a set of principles, frameworks, and good practices that guide the analysis of market systems and development interventions, which bring about socially inclusive and pro-poor change. 

In order to monitor progress towards project objectives and better measure changes, manage implementation and demonstrate results, Monitoring and Results Measurement (MRM) is key. MRM is also closely interrelated with Cost-Benefit Analysis (CBA), which is a systematic process for calculating and comparing benefits and costs of investments over time.

Which are our PSD projects? (PSD project Portfolio)