How Small Businesses Can Support Climate-Resilient Value Chains: Lessons from Uganda

This briefing note examines how micro-, small- and medium-sized enterprises (MSMEs), specifically domestic seed companies, can support climate risk management (CRM) within agricultural value chains. Using a case study of Equator Seeds in northern Uganda, the document illustrates how investments in quality, climate-resilient seeds and complementary services like agronomic training can reduce the vulnerability of farmers and other value chain actors to climate hazards such as droughts.

• Small agricultural businesses can enhance climate risk management (CRM) by developing new products, such as climate-resilient seed varieties, and providing complementary services that mitigate climate change impacts for their clients and suppliers.
• In Uganda, the use of quality seeds—specifically newly released varieties with attributes like heat tolerance and shorter maturation times—reduces the sensitivity of farmers to climate hazards compared to traditional home-saved seeds, which are more susceptible to pests, diseases, and climate risks.
• The delivery method of products is as critical as the products themselves; consistent, flexible, and timely supply of seeds allows farmers to plan production and recover more quickly from climate-induced harvest losses.
• Private agricultural extension services provided by small businesses, such as capacity building in agronomic practices and quality monitoring, fill gaps left by limited public services and improve the overall business ecosystem's capacity to handle climate risks.
• To further support CRM, small seed companies should prioritize three interlinked investment areas: helping farmers and agro-dealers make informed seed choices based on trade-offs, raising awareness of the benefits of climate-resilient varieties, and strengthening quality control systems through standards and partnerships to combat counterfeit seeds.
• MSMEs face significant barriers to investing in CRM, including limited access to affordable climate finance and a lack of understanding of the seed sector by commercial banks, which can lead to delays in seed multiplication and supply.

APA

Dekens, J., & Dazé, A. (2016). How Small Businesses Can Support Climate-Resilient Value Chains: Lessons from Uganda. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/how-small-agricultural-business-support-crv-chains-equator-seeds-uganda.pdf

Chicago

Dekens, Julie, and Angie Dazé. How Small Businesses Can Support Climate-Resilient Value Chains: Lessons from Uganda. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/how-small-agricultural-business-support-crv-chains-equator-seeds-uganda.pdf.

Wikipedia

{{cite report |last1=Dekens |first1=Julie |last2=Dazé |first2=Angie |title=How Small Businesses Can Support Climate-Resilient Value Chains: Lessons from Uganda |publisher=International Institute for Sustainable Development |date=October 2016 |url=https://www.iisd.org/system/files/publications/how-small-agricultural-business-support-crv-chains-equator-seeds-uganda.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{dekens2016how, author = {Dekens, Julie and Dazé, Angie}, title = {{How Small Businesses Can Support Climate-Resilient Value Chains: Lessons from Uganda}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = oct, url = {https://www.iisd.org/system/files/publications/how-small-agricultural-business-support-crv-chains-equator-seeds-uganda.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }