Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia

Micro, small, and medium enterprises (MSMEs) constitute the vast majority of firms operating in the food system, particularly so in LMICs (Reardon et al., 2021). In sub-Saharan Africa (SSA), MSMEs are strongly involved in each stage of the food value chain; at the retail stage, between 70% and 100%...

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Main Authors: Mekonnen, Daniel A., Nguyen, Trang, Teklehaimanot, Welday Hailu, Mengesha, Belay Terefe, Berkhout, Ezra
Format: Informe técnico
Language:Inglés
Published: International Food Policy Research Institute 2025
Subjects:
Online Access:https://hdl.handle.net/10568/180247
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author Mekonnen, Daniel A.
Nguyen, Trang
Teklehaimanot, Welday Hailu
Mengesha, Belay Terefe
Berkhout, Ezra
author_browse Berkhout, Ezra
Mekonnen, Daniel A.
Mengesha, Belay Terefe
Nguyen, Trang
Teklehaimanot, Welday Hailu
author_facet Mekonnen, Daniel A.
Nguyen, Trang
Teklehaimanot, Welday Hailu
Mengesha, Belay Terefe
Berkhout, Ezra
author_sort Mekonnen, Daniel A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Micro, small, and medium enterprises (MSMEs) constitute the vast majority of firms operating in the food system, particularly so in LMICs (Reardon et al., 2021). In sub-Saharan Africa (SSA), MSMEs are strongly involved in each stage of the food value chain; at the retail stage, between 70% and 100% of food is sold by MSMEs (Demmler, 2020). Harnessing the potential of food related MSMEs and informal businesses is suggested as one of the pathways to improve the availability, accessibility, and affordability of healthy foods, especially for lower income consumers (IFAD, 2021). This is because MSMEs have the potential to, among others, produce differentiated products that are highly local and traditional; adapt to high transaction costs; and innovate and offer complementary services such as inputs, information and logistics to small-scale producers in informal arrangements (Reardon et al., 2021; Liverpool-Tasie et al. 2020). Further, MSMEs are often located closer to the consumer, in villages and street markets, and can facilitate increased consumption of healthy foods while also contributing to the reduction of food loss and waste by engaging in food processing and other activities (Mekonnen et al., 2022). A study in Tanzania found that the proximity of informal vegetable vendors to a household was associated with a higher likelihood of vegetable purchases and lower consumption of carbohydrates (Ambikapathi et al., 2021). Another study in Kenya found strong associations between longer travel times to markets and lower diet quality for both vendors and consumers (Demmler et al., 2025). It is believed that MSMEs, often being close to consumers, can be agents of change for increasing consumption of healthy foods, if they possess sufficient innovative capacity.
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spelling CGSpace1802472026-01-21T16:58:00Z Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia Mekonnen, Daniel A. Nguyen, Trang Teklehaimanot, Welday Hailu Mengesha, Belay Terefe Berkhout, Ezra microenterprises food supply health small and medium enterprises Micro, small, and medium enterprises (MSMEs) constitute the vast majority of firms operating in the food system, particularly so in LMICs (Reardon et al., 2021). In sub-Saharan Africa (SSA), MSMEs are strongly involved in each stage of the food value chain; at the retail stage, between 70% and 100% of food is sold by MSMEs (Demmler, 2020). Harnessing the potential of food related MSMEs and informal businesses is suggested as one of the pathways to improve the availability, accessibility, and affordability of healthy foods, especially for lower income consumers (IFAD, 2021). This is because MSMEs have the potential to, among others, produce differentiated products that are highly local and traditional; adapt to high transaction costs; and innovate and offer complementary services such as inputs, information and logistics to small-scale producers in informal arrangements (Reardon et al., 2021; Liverpool-Tasie et al. 2020). Further, MSMEs are often located closer to the consumer, in villages and street markets, and can facilitate increased consumption of healthy foods while also contributing to the reduction of food loss and waste by engaging in food processing and other activities (Mekonnen et al., 2022). A study in Tanzania found that the proximity of informal vegetable vendors to a household was associated with a higher likelihood of vegetable purchases and lower consumption of carbohydrates (Ambikapathi et al., 2021). Another study in Kenya found strong associations between longer travel times to markets and lower diet quality for both vendors and consumers (Demmler et al., 2025). It is believed that MSMEs, often being close to consumers, can be agents of change for increasing consumption of healthy foods, if they possess sufficient innovative capacity. 2025-12-31 2026-01-20T20:41:45Z 2026-01-20T20:41:45Z Report https://hdl.handle.net/10568/180247 en Open Access application/pdf International Food Policy Research Institute Mekonnen, Daniel A.; Nguyen, Trang; Teklehaimanot, Welday Hailu; Mengesha, Belay Terefe; and Berkhout, Ezra. 2025. Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia. CGIAR Research Program on Better Diets and Nutrition. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/180247
spellingShingle microenterprises
food supply
health
small and medium enterprises
Mekonnen, Daniel A.
Nguyen, Trang
Teklehaimanot, Welday Hailu
Mengesha, Belay Terefe
Berkhout, Ezra
Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title_full Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title_fullStr Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title_full_unstemmed Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title_short Building MSME innovative capacity for healthier food supply: Learning from three MSME support mechanisms in Ethiopia
title_sort building msme innovative capacity for healthier food supply learning from three msme support mechanisms in ethiopia
topic microenterprises
food supply
health
small and medium enterprises
url https://hdl.handle.net/10568/180247
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