Small and medium forest enterprises and associations
The forestry sector in developing countries is dominated by small and medium sized forest enterprises. But the diverse range of these enterprises makes it difficult to understand the contribution they make to sustainability and poverty reduction.
As a result, good information is scarce and often inconsistent between sources. But rough estimates from existing information suggest the following:
- in many countries about 80-90% of forestry enterprises are SMFEs
- in many countries over 50% of all forest sector employment is in SMFEs
- worldwide over 20 million people are employed by SMFEs
- worldwide over US$130 billion/year of gross value added is produced by SMFEs.
Association lies at the heart of attempts by SMFEs to foster pro-poor growth – fighting scale disadvantages and political marginalisation to capture the benefits of globalisation. If SMFEs are strengthened and the external policy environment improved, there is a great potential for SMFEs to attract more investment and make a bigger contribution to poverty reduction.
Through this project we are aiming to:
- develop ways in which SMFEs can better contribute to sustainable poverty reduction
- lobby policy makers and practitioners to help establish and support sustainable SMFE associations
- encourage and enforce greater sustainability in private sector forestry.
One of the major impacts of our work has been an increased recognition of the role of SMFEs by donor and civil society development organisations. This has led to a willingness to pursue SMFE support programmes and further explore the opportunities and challenges they face.
This project has enabled IIED to place SMFE issues at the forefront of the international agenda (for example through events at the Food and Agriculture Organisation, United Nations Forest Forum and International Timber Trade Organisation meetings and through the convening of a Tropical Forest Forum meeting by IIED in London).
There is some evidence that national forest programmes are beginning to take SMFEs seriously in policies and regulations covering the use of forest land. There is now considerable momentum behind the idea of channelling consumer purchasing power towards small community forest enterprises through fair trade.
Unlocking barriers to financing sustainable SMEs: uphill struggle or attainable ambition?
Briefing, November 2016
We have published over 20 reports, including country case studies and international studies, on the role of forestry in poverty reduction in IIED's Small and medium forest enterprise series.
8 October 2007 press release by IIED: Who wants fair trade timber?
Department for International Development, Ministry of Foreign Affairs of Denmark, Swiss Agency for Development and Cooperation and Netherlands Ministry of Foreign Affairs, Directorate General for Development Cooperation.
China World Agroforestry Centre and Research Center of Ecological and Environmental Economics
Guyana Guyana National Initiative for Forest Certification and Guyana Forestry Commission
South Africa Upstart Business Strategies and Institute of Natural Resources
Uganda Sustainable Development Centre and Uganda Forest Sector Co-ordination Secretariat
Team Leader - Forests