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Framework for promotion for micro Enterprises 240709Document Transcript
Framework for promotion of Business Development Services
for micro Enterprises (BDS4ME)
Jitesh Panda & Rajib Mohanty1
Micro Enterprise Development contributes towards economic, community and human
development of individuals, households, community and an area. Promotion of micro
Enterprises centres on both strengthening enterprises leading to Economic Development
(ED) and eradication of poverty focusing on Community Development (CD). While
promoting enterprises, there is always thrust on enhancing entrepreneurial skill and attitude
of the entrepreneur, which can be referred as Human Development (HD). This further
contributes towards inclusive pro poor livelihood promotion efforts.
Business Development Services (BDS) comprises of different support services related to
technology, management, marketing and sourcing raw material that help in effective
functioning and growth of an enterprise. Most of the micro Enterprises is in need of BDS
services. However, there is only very limited availability of BDS for micro enterprises. With
increasing realization on need for BDS, micro Enterprise development programs have started
promoting BDS for micro Enterprises. However, as BDS market (both demand and supply) is
yet to develop, it has been quite challenging to design and implement BDS promotion
A simple flexible framework for promotion of BDS for micro Enterprises would be useful for
donors, BDS facilitating organizations and also the BDS providers. It is desirable that the
framework relate to key aspects of micro Enterprise Development i.e. economic, community
and human development. The following diagram (in shape of a triangle) details a simple
framework for promotion of BDS for micro Enterprises. This has been developed based on
review of literature and interaction with BDS practitioners.
Vrutti Livelihoods Resource Centre
19, 1st Main, 1st Cross, Ashwath Nagar, RMV 2nd Stage, Bangalore 560 094, India
Email: firstname.lastname@example.org email@example.com
BDS promotion efforts may consider three key aspects of micro Enterprise development i.e.
economic, community and human development. The focus on all these three aspects need to be
at all levels viz. individual (micro Entrepreneur), household, group, habitation and geographical
area. Economic Development mainly centres on growth of the micro Enterprise. It relates to
increase in turnover and profit finally contributing economic development at different levels.
Community Development centres on contribution of the project in shape of income generation
and employment opportunities leading to eradication of poverty, with focus on marginalized
communities. It also relates to access to livelihood resources, social issues (gender equity),
environmental issues and other cross cutting issues like HIV/AIDS and climate change.
Similarly, Human Development would centre on promotion of entrepreneurial attitude at
individual level to creation of entrepreneurial culture at an area level. This also includes skills
and expertise to manage an enterprise. The emphasis on each of the aspects would vary with
enterprise, entrepreneur and area.
For example, in an area where there is prevalence of enterprise culture the BDS promotion efforts
may not focus more on human development. Similarly, if a person already has traditional skill
(human development at higher level), it is desirable to focus on economic development which
may include BDS efforts related to market linkage. In a vibrant micro Enterprise cluster, where
human development and economic development is likely to be at higher level, it may be relevant
to focus more on community development i.e. to orient the micro Enterprises so that it
contributes in eradicating poverty and inclusive development. This framework can help in
identifying the critical gaps linked to these three aspects of micro Enterprise Development at
different levels be it individual, family, group, community or an area. Further such assessment
can be made on a scale of 1 to 5 with 1 being very low and 5 being very high. This would lead
different shape of triangle as base line of BDS promotion efforts.
Further the baseline triangle would also indicate the need for expertise to take up BDS promotion
efforts. For example, where there is need for more of human development linked to developing
entrepreneurial attitude, a management institute or a successful entrepreneur would be in a
better position to offer BDS. If there is need for intervention relating to economic development
(exploring market linkage), BDS as an embedded service from the buyer would be more
successful. In case, there is concern that micro Enterprises are not contributing to poverty
alleviation and inclusive growth, involvement of a Civil Society Organization would be
desirable. However, in practice it would be difficult to involve variety stakeholders (with
different expertise) in facilitating/providing BDS services; which may also depend on
availability of resources. This framework broadly indicates to be conscious and be aware of the
need for BDS, so that effective BDS can be provided.
Micro Enterprises prefer to receive BDS in a personalized manner. They need services in
mentoring, counselling and hand holding mode. Hence, BDS promotion efforts focus on
promoting cadre of BDS providers at community level. Depending on profile of micro
Enterprises to be served (i. e. shape of the triangle), this framework can also support in
identification/selection of BDS providers, training them and in designing micro enterprise BDS
This framework for promotion of BDS for micro Enterprises is more at an idea level. The
framework is simple, flexible and can be adapted to specific context of BDS facilitators and
providers. BDS practitioners may use this with further detailing and modification. Detailing the
framework may include sub points linked to each of the key aspects. Modification of the
framework may relate to other areas like looking at processes, influencing factors and policy
support relating to micro Enterprise Development. Overall, this framework may be useful for
planners, donors, facilitators, providers and more specifically at persons working on BDS at
community level in designing and implementing BDS promotion efforts for micro Enterprises.