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Business linkages between large enterprises, such as transnational corporations (TNCs) and local suppliers can be a channel for the transfer of technology, knowledge and skills to host economies. Business linkages between large enterprises, such as transnational corporations (TNCs) and local suppliers can be a channel for the transfer of technology, knowledge and skills to host economies. This can enhance the competitiveness of developing countries and help them to capture the opportunities for increased trade and investment brought about by globalisation and economic liberalization.

The International Finance Corporation's (IFC) linkage programs are designed around selected IFC investments to increase the participation of local firms in the project and bring additional benefits to surrounding communities. At the same time, these programs may reduce costs to investors and enhance their ability to be responsible corporate citizens. IFC linkage programs achieve these objectives by:

- Improving local SMEs' technical and business skills, helping them generate sustainable new sources of income
- Facilitating access to finance for local suppliers
- Strengthening local supply and distribution networks
- Supporting community development projects with health, education, and infrastructure programs

The Business Linkages roundtable dialogues, held in partnership with the International Business Leaders Forum and the CSR Initiative at the Harvard Kennedy School, explore business models that incorporate those at the BOP as consumers, producers, and entrepreneurs, with special emphasis on producers and entrepreneurs. As a result the following three reports have been published:

- Business Linkages: Lessons, Opportunities, and Challenges (2007), 64 pages
- Supporting Entrepreneurship at the Base of the Pyramid through Business Linkages (2008), 36 pages
- Business Linkages: Enabling Access to Markets at the Base of the Pyramid (2009), 32 pages

Tags: Business, IFC, Linkages

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