UNIDO recognizes the numerous constraints that stand on the way of profit making and long-term growth, such as:

• Lacking conducive regulatory environment and market information,
• Inadequate institutional and technical support infrastructure disabling industrial performance and competitiveness of SMEs,
• Weak knowledge and skills on the side of entrepreneurs in developing countries,
• Difficult access to financial services, and
• High up-front investments and transaction costs.

UNIDO seeks, through a combination of advisory and capacity building services, to strengthen national capacities for the creation and continuous improvement of a business environment.  This allows the private sector to make a greater contribution to growth, employment and income generation.

UNIDO also supports the creation and/or strengthening of the institutional infrastructure required for the formulation and implementation of SME and private sector development policies and strategies. Working with policy makers to identify constraints in the market environment and finding ways to address them, UNIDO strives towards enhancing of productivity and competitiveness within a market development perspective.

CBU provides advisory and capacity-building services to create and/or strengthen the institutional, operational, legal, and regulatory infrastructures required for the formulation and implementation of strategies for industrial upgrading.  Industrial upgrading programmes enhance productivity and competitiveness of industries. CBU is also the seat of UNIDO’s Gender Mainstreaming Steering Committee (GMSC). 

CBU’s portfolio includes:

• Industrial upgrading services for enterprises, capacity building services for support institutions and policy advice for Governments to improve the productivity and competitiveness of industries at regional, national and local levels
• Policy advice to create enabling business environments for SMEs and the private sector
• Promotion, in cooperation with numerous public and private partners, of local manufacturing of pharmaceutical products in Africa and beyond
• Promotion of public-private and business partnerships between global and national public and private institutions with the aim of integrating domestic industries into global value chains
• Assistance and advice to governments and enterprises on deployment of foresight methodologies as a decision-making tool in strategy formulation and implementation of long-term industrial development strategies
• Global forum activities to facilitate an exchange of experiences and to disseminate information on good practices related to enabling business strategies for the private sector
• Capacity building services for UNIDO on gender mainstreaming in programming and throughout its organization