Value Chain Glossary: Lead Firm
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Lead Firm
Small, medium, or large firms that have forward or backward commercial linkages with a significant number of MSEs and are involved in a significant percentage of sector sales. Because of their market share, they have an effective influence on governance patterns within the value chain. Examples of lead firms include buyers, traders, input suppliers, veterinarians, exporters and processors. Lead firms often provide important products or support to the MSEs they buy from or sell to, as part of their commercial relationships with them. Examples include training, technical assistance and inputs. They are often engaged in aggregating the production of MSEs, adding value to raw materials, and selling finished products in domestic and international markets. Lead firms can vary significantly in size and may operate as part of either the formal or informal economy. They are often key innovators and respected thought leaders in their industries.
