Value Chain Glossary: Leverage Points
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Leverage Points
Points along a value chain where a minimal intervention can create broader or more sustainable change. Appropriate leverage points and players that can facilitate a greater flow of benefits to the MSEsvalue chain should be identified during the design phase of the value chain cycle. Targeting interventions at these leverage points will often yield much more favorable outcomes and an easier exit for the facilitator than focusing solely on the MSE level.
- Economic structures: Product or service aggregation points and actors with the ability to influence large numbers of stakeholders (e.g. lead firms, traders, input suppliers).
- Social structures: Respected community members, chiefs and elders, who are able to influence others to collaborate or to adopt new techniques, technologies, services or inputs.
- Commercial incentives: Competition and/or firm strategies that can be used to pressure buyers, traders and others to change predatory or abusive behavior.
- Social incentives and norms: Social factors that influence decision-making, particularly at the MSE level.
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