Enabling private sector adaptation to climate change among small businesses in developing countries: What role for multi-stakeholder partnerships? Experiences from Kenya

Abstract 

This paper investigates the role of multi-stakeholder partnerships (MSPs) in supporting the development  of enabling conditions for adaptation to climate change among micro, small and medium enterprises  (SMEs) in developing countries. Specifically, through thematic analysis of key informant interviews, we  explore the ways in which such partnerships are being mobilised to support SME adaptation in Kenya and the rationales underpinning interest in MSPs as a model to structure the delivery of adaptation resources  in development practice. This study finds that a wide range of private sector actors can be mobilised to  produce adaptation resources for SMEs through partnerships, including to support adaptation among  groups, regions and sectors that would otherwise fall outside of market inclusion. MSPs are consequently  often seen to present an exciting opportunity to plug gaps in adaptation and development finance and to  upscale adaptation. Further analysis, however, suggests that, dependence on market mechanisms for delivering adaptation resources means MSPs may exclude the poorest groups, expose businesses to new risks and reproduce existing inequalities. Additionally, despite expectations that market-based  approaches will support partnership sustainability, MSPs often remain heavily dependent on donor-led organisations for both resources and momentum. In Kenya, opportunities to develop more integrated  responses to supporting the adaptive capacity of SMEs are being missed through a disconnect between  the practice of MSPs and the national governing public private partnerships framework. By paying  particular attention to the ways in which stakeholders represent the distributional outcomes of MSPs, in  this paper we identify opportunities to enhance the strategic design of MSPs to support more inclusive  adaptation.

Enabling private sector adaptation to climate change among small businesses in developing countries: What role for multi-stakeholder partnerships? Experiences from Kenya

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