Private Sector Development Branch Overview

Private sector is the driving force of industrial development in virtually all countries. Broad agreement exists on their crucial role in economic and industrial development and in particular in achieving the Millennium Development Goals. In this context, a critically important role is played by micro, small and medium enterprises, which, on average, make up over 90% of enterprises in the world and account for 50-60% of employment in particular in developing countries, whose major challenge is to combine the SMEs’ employment potential with increasing productivity. This means shifting from low-value, price-driven to higher-value, knowledge-based performance. To prosper, private sector needs an environment that facilitates growth, including easy access to business related information, technical support services, funding and national and international markets.

UNIDO’s specific focus in the field of poverty reduction through enhancing the development contribution of the private sector consists in supporting the formulation of industrial policies that improve the general business environment for private sector development, as well as in building up local productive capacities in a private sector-led process. In particular, the activities of the PSD Branch aim at promoting industrial enterprises that drive the economic growth process and foster entrepreneurship, technological dynamism and associated productivity growth. These, in turn, create skilled jobs, contribute to the achieving gender equality and women empowerment, and support integration into national and global value chains. PSD also acts as the focal point within UNIDO for the Donor Committee on Small Enterprise Development and the UN Global Compact.

Technically, these services are provided through activities within the following thematic areas of: Business Environment and Policy Support (BEP), Clusters and Business Linkages (CBL), and Rural and Women Entrepreneurship and Human Security (RWE).

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