Private Sector Development


Why private sector development?

Private sector development aims at creating incentives for private-sector activities. Private enterprises are the backbone of a national economy, and the private sector is the most important driving force in the move to create jobs and income opportunities. Stable framework conditions, a positive investment climate and correctly functioning markets and institutions are required in order to unleash the potential of the private sector.

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 systematic approach to market development, in line with strategies which are summarized under the collective title Making Markets Work for the Poor. The common denominator of these strategies is that they define markets as socio-economic systems and endeavor to influence these markets so as to improve the opportunities of poor persons to take part in them, whether as employees, producers or consumers.

What will you find on the private sector development pages?   

Under topics, you find a short introduction to each topic of PSD with relevant documents, events, trainings and links. The Resource Box provides you with practical tools within the PCM for your PSD projects. You find an overview of all projects, events & trainings in the realm of private sector development under the specific tab. Or you can also explore the latest e-discussions, or relevant partners. Last but not least, under reference indicators, you find the official mandatory aggregated reference indicator (ARI) from SDC for PSD, as well as further helpful documents on indicators for PSD.


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