Promoting business linkages with small enterprises as an incentive to formalize
This document is part of a series of case studies by the Enterprises Department of the ILO. Each case study presents one or several approaches that contribute to enterprise formalization across the world.
Promoting business linkages with small enterprises can be a strong incentive to encourage entrepreneurs to formalize their businesses. When along a value chain, buyers are looking for suppliers to obtain goods and services, while governments and other stakeholders back up business linkages by providing capacity building to SMEs, informal enterprises are encouraged to register. In Chile, this has taken the form of efforts to create and consolidate stable subcontracting relationships between a private or public entity and its suppliers, through both public and private procurement combined respectively with supplier development support and productivity enhancement.