Forest Connect: linking small and medium forest enterprises to markets and services

Small and medium forest enterprises (SMFEs) are critical to the poor. They generate local wealth, help to secure local resources and environmental accountability, promote local creativity and help to preserve indigenous cultures and market niches. But while the number of SMFEs starting up in least developed countries is high, keeping them going sustainably is a major challenge. They face problems such as too much bureaucracy, unstable policies and regulations, insecure land rights, lack of bargaining power, insufficient business knowledge and difficulties accessing credit, market information and technology.

Many SMFEs work together in associations to reduce transaction costs, adapt to new market opportunities and shape the policy environment in their favour. But in least developed countries, support structures for such forest associations either do not exist or fail to reach those who need help most.