BDS for micro Enterprises across the World 220709
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BDS for micro Enterprises across the World 220709 Presentation Transcript

  • 1. Business Development Services for micro Enterprises (BDS4ME) across the World Jitesh Panda Vrutti Livelihoods Resource Centre 22nd July 2009
  • 2. References from the Document….. BDS UPDATE Fourth Annual BDS Seminar, Turin, Italy September 2003 By: Alexandra O. Miehlbradt and Mary McVay for the Small Enterprise Development Programme of the International Labour Organization (ILO)
  • 3. Azerbaijan… Organization: Mercy Corps Background: International NGO Clients: Small scale livestock farmers Services: Training veterinarians with training and assistance in marketing, business planning, and Management; who in turn proving services to small scale livestock farmers Payment: Grant Funded by USAID Learning: Veterinarians could access new skills; Beneficiary including women could access service in groups
  • 4. Bangladesh…. Organization: KATALYST Background: Funded by a donor consortium and implemented by Swisscontact and GTZ International Services Clients: SMEs through Partner Organizations Services: develop Cross-sector business services markets; Industry and Rural business services markets; Media services markets and Conducive Business Environment Payments: NA (likely to be grant project linked) Learning: Able to integrates crosscutting issues such as environmentally responsible business, socially responsible business and gender
  • 5. Bulgaria…. Organizations: UBDP, ILO, Ministry of Labour and Social Policy Background: A development project Clients: micro Entrepreneurs Services: Setting up Business Centres, Incubators and Business Information Centres Payment: 33 to 84 % cost recovered by Business Centres Status of Service: Project completed; BDS available through Business Centres Learning: Building on existing local initiative, focusing on ICT and on simplicity of model led to success of the project
  • 6. Guatemala… Organizations: Aid to Artisans and AGEXPRONT Background: Aid to Artisan (NGO); AGEXPRONT (An association of Exporters) Clients: Artisans Services: Organizing Trade Shows, Training and Product Development Payment: Earlier subsidized services; Planned to provide fee for services Learning: Stimulating market demand may work; Possibility of developing business plan for BDS facilitation (as developed by AGEXPRONT, income coming through membership fees and proceeds from workshop/events
  • 7. Egypt…. Organization: FfIT Background: Development project supported by CIDA and Government of Egypt Clients: Potential Entrepreneurs belonging to marginalized population groups Services: Developing innovative, new small and medium sized Enterprises through Regional enterprise Development Centres Payment: Focus was on self sufficiency of Regional Enterprise Development Centres Learning: Model could be replicated through other facilitating NGOs; Small Enterprise Development programs can focus on women and take care of concern for environment and child labour
  • 8. El Salvador… Organization: GTZ Background: International Organization Clients: NA Services: BDS Market Assessment Payment: NA Learning: There is a limit to outreach of BDS - Even in well developed market consulting services reach about 40% of small enterprises; Relative prices for BDS is higher where market penetration for BDS is lower; BDS program need to focus on awareness and appreciation of BDS and on improving service quality of BDS Providers
  • 9. Ethiopia… Organization: ACDI/VOCA Background: A USAID funded Horticulture Development Project Clients: Small Scale Farmers growing Fruits and Vegetables Services: Strengthening ties between exporters and cooperatives; Introducing embedded services to farmers such as training and quality control standards along the market chain Payment: Embedded Service (indirectly paid as part of business transaction) Learning: NA
  • 10. Honduras… Organization: Fintrac Background: USAID-funded Agribusiness Project Clients: Small Farmers and Agri Businesses Services: Increasing the demand for BDS; Enhanced availability of BDS through local commercial service providers; Also facilitated Custom Clearance and Marketing Services Payment: Commercial Service – fee for service Learning: BDS helped to reach out to more farmers than was originally covered under the project
  • 11. Honduras…. Organization: FINTRAC Background: USAID funded horticulture development program Clients: Small Scale Farmers Services: Linking farmers with better input supplies and market; Information services to farmers through input suppliers Payment: Free during project; Difficulty to sustain service after the project Learning: Able to reach more farmers at lower cost; It has become difficult to continue the research and publication service in the long run
  • 12. India… Organization: SEWA Background: NGO and MFI Clients: Salt Workers Services: Organized Workers; Social (health, childcare and water) services; Market linkage services; and micro Finance services Payment: NA Learning: Holistic services has supported improvement of lives of salt workers
  • 13. India…. Organization: EDA Rural Systems Background: NGO Clients: NA Services: BDS Market Assessment (Leather Footwear Cluster) Payment: NA Learning: Important to use Entrepreneur own language in assessment process; Assessment process was educational for the Entrepreneurs; Entrepreneurs identified fee-for service, embedded, and informal BDS experienced by them
  • 14. Kenya…. Organization: World Bank Background: Kenya Training and Business Development Services Voucher Program Clients: Small Enterprises Services: Training Services through BDS Providers Payment: NA Learning: BDS had indirect benefit to economy and Employees associated with different Enterprises
  • 15. Kenya…. Organization: DTTEM Ltd Background: USAID funded Kenya Business Development Services Program Clients: Rural micro and Small Enterprises Services: Services like product assembly and grading, quality assurance, market information, financial brokering, research and development, appropriate technology, business skills training, and material input supply were identified through a step by step process; Related BDS was provided BDS Facilitators (both NGOs and Private Firms; International and National) identified through selection process Payment: Small Grant from Project Learning: Step by Step implementation of the project facilitated BDS
  • 16. Kenya… Organization: ITDG Background: INGO Clients: Small Entrepreneurs unable to access internet Services: Enhance access to internet information through Informal Business Advisers; ITDG provides sector specific business tips in Internet Payment: NA Learning: Helped develop intermediary BDS Market
  • 17. Kenya…. Organization: Twendelee Background: Women Handicraft Group based at Nairobi; supported by EU Micro Enterprise support program Clients: Women associated with production of Handicrafts Services: Services related to use of Internet to strengthen business (like deciding color choice and design) Payment: Free service through Technical Service Provider; Payment for use of Internet Learning: Able to get idea on new designs
  • 18. Kyrgyzstan… Organization: Helvetas Swiss Association for International Cooperation Background: Support to Private Initiatives Project (SPIP), supported by SDC and GTZ Clients: Small and Medium size Agri Processors Services: Project facilitated links between food processors, Kyrgyz traders, and buyers in Russia by hosting workshops and buyer-seller meetings; This led to demand for BDS; Later a Private Company led Information and Technical Center sold information about markets, equipment, and finance to food processors and traders Payment: Initial effort through Grant Project; Later BDS Services to businesses on fee for service basis Learning: Voucher type BDS Intervention did not work as Processors did not experience previous consulting services
  • 19. Kyrgyzstan… Organization: Helvetas Swiss Association for International Cooperation Background: INGO Clients: Rural Food Processors Services: Overall focus was to link Rural Food Processors to Urban Management Consultants; Urban Management Consultants formed Association of Consulting Companies (ACC) to develop the market for consulting services, increase competence of consultants; and defend the consulting market from “market distortion” and “improper” interventions by donor agencies Payment: Urban Management Consultants offered services on fee basis Learning: Initial Meeting between Consultants with Food Processors was useful to develop BDS Market in the long run
  • 20. Malawi…. Organization: GFA and GTZ Background: Establishing Franchise for Training Products Clients: Small Entrepreneurs Services: Initially, GFA established BEED, a private company, as the franchiser and license holder. BEED trained trainers who were to sell training to entrepreneurs and pay a licensing fee to BEED, which would re-invest profits in further capacity building of franchisees; Later, BEED became a broker for training contracts to trainers and the payers were government and parastatal organizations, with contributions from participants. Payment: Grant from Govt. and Contribution from Beneficxiaries Learning: Initially, trainers were not able to sell training directly to SEs, due to high costs, lack of marketing skills, and highly distorted training markets
  • 21. Mali… Organization: Action For Enterprise (AFE) Background: USA based International NGO focusing BDS Market Development Client: Exporters (indirectly benefiting Artisans) Services: Facilitator and Action Research – linking Artisan to international Market Payment: Grant project of USAID Office of Micro Enterprise Development - Implementation Grant Program for BDS Status of Service: Grant Project already Implemented Learning: Could built Exporters capacity to offer quality control services to Artisans
  • 22. Nepal…. Organization: Business Service Adhar Background: Promoter is Entrepreneur in Business Service Market Clients: DTP Units serving small Enterprises Services: Services DTP Units to become Advertising Firms for small Enterprises Payment: Fee for Service Learning: NA
  • 23. Nepal…. Organization: GTZ Background: International Organization Clients: Micro and Small Enterprises Services: Accounts Training Service through Commercial Accounting Firm Payment: Mainly Fees from Participants, supported by Grant from GTZ Learning: Demand for accounting services from micro and small enterprises to comply with Value Added Tax; In the long run service was profitable to accounting firm; Possibility of replicating the service through Franchise was explored
  • 24. Peru… Organization: Swisscontact Background: INGO Clients: Small Enterprises Services: Information about Trainers and Training Market through Information Magazine on the BDS Market Payment: Magazine is funded by advertising from BDS Suppliers Learning: Found to be potential “exit strategy” from the information function of a voucher program; Trainers could know trends in BDS Market
  • 25. Peru…. Organization: Chemonics and ITDG; Mennonite Economic Development Agency (MEDA) Background: USAID-funded Project to Reduce and Alleviate Poverty (PRA) Clients: Farmers Services: Advice, inputs, markets, and finance to Farmers; Input suppliers, agro-processors, buyers, and an MFI co-finance loans to farmers and share collateral. If the crop is good and sale successful, buyers pay the MFI, which then pays all parties. In case of disaster, all parties take a loss. Agromonitor – An information gathering system support this system Payment: Embedded with Loan Learning: Combination of finance and BDS shows promise for improving the agricultural production and market chain to the benefit of all parties
  • 26. Philippines… Organization: Strategic Development Cooperation–Asia Background: USAID-funded program to develop BDS markets for micro Enterprises Clients: Small Enterprises Services: Brand and market space rental services to Small Enterprises with support of local firm Payment: Fee for Services Learning: NA
  • 27. Philippines… Organization: GTZ Nepal and Strategic Development Cooperation - Asia Background: As part of Projects focusing on BDS Market Development Clients: Small Entrepreneurs Services: Assisting existing BDS providers to develop and commercialize new products; Conducts regular BDS Market Assessment Payment: Fee for Services by BDS Providers Learning: Incidence of “copycat” BDS providers delivering the BDS products; More enterprises are purchasing the BDS, particularly groups such as women-owned enterprises; Target enterprises are using business services Systematic market monitoring helped in adjusting the interventions to changing conditions in BDS markets
  • 28. South Africa… Organization: GTZ Background: International Organization Clients: Small Enterprises in Urban Areas Services: BDS Market Assessment to identify service markets Payment: NA Learning: Analysis of the Market Assessment data using different tools helped in identifying unmet demand and pinpointing BDS service features and benefits that Small Enterprises want
  • 29. South Africa…. Organization: World Education Background: NGO Clients: micro Enterprises in Construction Sector Services: Facilitated BDS services such as information, compliance, project management, and transaction financing for both large and small firms through existing BDS Providers; Developed new service products; Strengthened linkage between small and large firms Payment: NA Learning: With BDS services, micro Enterprises could win higher value sub contracts; Initial BDS Market Assessment was useful in designing the program
  • 30. South Africa… Organization: Triple Trust Organization (TTO) Background: NGO Clients: Spaza (Hidden) shop Owners Services: Assessed potential for offering BDS Services using idea of BDS Product concept like “What If “ specific BDS was made available Payment: NA Learning: NA
  • 31. Srilanka…. Organization: SEEDS Background: NGO operating mFI and BDS Program Clients: mFI Clients Services: Training, counseling and technology access through Business Advisers Payment: Fee for BDS Learning: Instead of providing BDS, mFI will link to external BDS providers
  • 32. Srilanka… Organization: GTZ, FINTRAC/USAID, ILO/FIT Background: Donor supported BDS Project Clients: Small Enterprises Services: Supported Organizations to sell Business Information Services i.e. General Business Information, Business Contacts, Market Opportunities, Sector Statistics, Business Mapping; through Email, Phone, Mail, Visit and Fax Payment: Offered on Fee for Service to Small Enterprises Status of Services: On going; Service Providers are offering Services Learning: More demand for General Business Service followed by Information on Business Contact; With this track record of effective sales, BIS suppliers are now seeking profitability
  • 33. Srilanka…. Organization: Southern Province, Srilanka and CBTD Background: Initiative of Southern Province Rural Economic Advancement Project (SP-REAP) and ILO SIYB; CBTD – A Development Consulting Group Clients: Small Entrepreneurs Services: Technical and managerial training relating to construction Payments: Entrepreneurs pay 30 % of cost of training Status of Service: On going Learning: Implementation through BDS Organization was successful; Role of CBTD as BDS facilitator was important; Small Entrepreneurs could participate in construction tender and offer quality services
  • 34. Tanzania…. Organization: FAIDA Small Enterprise Program in Tanzania Background: SNV project supporting rural micro Enterprises Clients: Rural micro Enterprises Services: Business training and counselling services; FAIDA provides services through BDS Training and Consulting Firms that offer services through network of Grass root Promoters Payment: Fee for services to Clients Status of Service: On going – Market led Learning: Initially difficult for micro Enterprises to pay full cost; Outreach and cost-effectiveness improved dramatically with market led approach
  • 35. Uganda…. Organization: Creative Business Development Group Background: Promoter worked in Donor funded Project Clients: Small Enterprises Services: Training Package and Consulting Services Payment: Fee for specific Service Status of Service: Planning Stage Learning: NA
  • 36. Uganda… Organization: DFID/ILO Background: Business Service Market Development (BSMD) Project Clients: Small Farmers Services: Publishing information in local media on existing businesses providing embedded BDS to Small Farmers Example – Training provided as embedded service by Exporter Payment: NA Learning: It is possible to strengthen BDS as embedded service
  • 37. Ukraine…. Organization: Intron - A Private Sector Firm Background: USAID funded Newbiznet Project Clients: Enterprises Services: Replication of valuable accounting service (Guarantee against Tax Inspection Fine) developed by Intron, through other BDS Provider Payment: Monthly Fee for Service at BDS Provider level Learning: It is desirable to replicate existing proven BDS
  • 38. Vietnam…. Organization: Training for Women Micro and Small Enterprises – Phase 2” (TWMSE2) project Background: A Development Project Clients: Women Entrepreneurs Services: Management Training courses offered through local trainers Payment: Grant Project Learning: New management practices were observed in the Enterprises; Women who received training enjoyed higher sales and personal income
  • 39. Learning Points…. International BDS4ME efforts focuses on: Developing BDS Market Both enhancing Demand and facilitating Supply Conducting BDS Market Assessment Before taking up BDS Intervention Exploring option to work with existing BDS Providers Preferably CSOs, Private Companies and Individual BDS Providers Facilitation of BDS (than providing BDS) Through Franchising/Working through local Organizations Commercialization of BDS Services
  • 40. Thank you