The BLCF is a cost sharing grant scheme i.e. it gives grants to enterprises to achieve DFID's objective of development commercially sustainable business linkages that bring benefits to the poor. It is a way of working in partnership with the private sector towards the goal of poverty eradication.

The Fund encourages and supports the formation of business linkages by enterprises in developing countries with each other and/or with international partners. These linkages must bring enhanced competitiveness and generate clear benefits for the poor. The linkages involve an investment of resources by all members of the linkage -skills, technology, information, facilities, supplies and access to markets. The linkages, in turn, bring benefits t all members and to poor people.

Bidding is competitive and grants are allocated according to the degree to which bids meet BLCF criteria and objectives.

Funding comes from the UK Government's Department for International Development (DFID). The BLCF offers grants of between £50,000 to £1,000,000 (larger grants may be considered in some cases if they will make a special contribution to achieving the BLCF's objectives).