Business Development Services (BDS)
for Rural micro Enterprises….



                                   Jitesh Panda
     ...
What are features of Rural micro Enterprises?

 Usually Small

 Largely Informal

 Many a times - Owner as Employee

 Agri...
What is BDS for micro Enterprises?


 Support Services to start and/or strengthen
 micro Enterprises

 May relate to
   Ac...
Who provides BDS Services to micro
Enterprises?
 Family Members

 Friends

 Relatives

 Money Lenders

 Village based Key ...
Who provides BDS Services to micro
Enterprises?

 Development Workers (CSOs and Govt.)

 PRI Functionaries

 Buyers/ Trade...
What are different types of BDS Services?


 Operational BDS Services
   Direct support in managing enterprises
   Support...
What are different types of BDS Services?


 Strategic BDS Services
   Support in improving performance & be
   competitiv...
What are broad approaches to provide
BDS Services?
 Stand alone BDS Services

 Bundle BDS Services
   Combining technology...
How to Price BDS Services?

 Direct
    Fee for specific Services

 Indirect

   Part of Cost
       Buying Inputs at high...
What are the challenges in providing
BDS Services to Rural micro Enterprise?
 Inadequate appreciation of informal BDS serv...
What are the challenges in providing
BDS Services to Rural micro Enterprise?
 Sustainability/Profitability
   Inadequate a...
What are potential options for BDS Services to
Rural micro Enterprise?
 Independent Village based BDS Providers

 Independ...
What are potential options for BDS Services to
Rural micro Enterprise?
 Corporate (Input supply/Procurement Companies) led...
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BDS for Rural micro Enterprises 010409

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BDS for Rural micro Enterprises 010409

  1. 1. Business Development Services (BDS) for Rural micro Enterprises…. Jitesh Panda Vrutti Livelihoods Resource Centre 1st April 09
  2. 2. What are features of Rural micro Enterprises? Usually Small Largely Informal Many a times - Owner as Employee Agriculture and allied sector; and/or skill based In most cases – part of family At times – not visible Difficult to get similar profile of micro Enterprises
  3. 3. What is BDS for micro Enterprises? Support Services to start and/or strengthen micro Enterprises May relate to Accessing Technology Accessing Market Accessing Raw Material Also managing the Enterprise
  4. 4. Who provides BDS Services to micro Enterprises? Family Members Friends Relatives Money Lenders Village based Key Informants Other Entrepreneurs
  5. 5. Who provides BDS Services to micro Enterprises? Development Workers (CSOs and Govt.) PRI Functionaries Buyers/ Traders Private Companies Banks
  6. 6. What are different types of BDS Services? Operational BDS Services Direct support in managing enterprises Support day to day needs Examples of Operational BDS Services Counseling Maintaining accounts Audit (if required) Information services relating inputs, market, technology and quality
  7. 7. What are different types of BDS Services? Strategic BDS Services Support in improving performance & be competitive Focus on Medium/Long-term needs Examples of Strategic BDS Services Developing Business Plan Locating Technology Designing Products Support in setting up production facilities Credit Linkage Identifying Markets
  8. 8. What are broad approaches to provide BDS Services? Stand alone BDS Services Bundle BDS Services Combining technology, design and training Embedded BDS Services Along with Business Through informal/formal Associations
  9. 9. How to Price BDS Services? Direct Fee for specific Services Indirect Part of Cost Buying Inputs at higher price Selling produce/products at higher price Accessing Credit at higher Cost Commission While buying Inputs While selling Produce/Products While accessing Credit (Add on Interest)
  10. 10. What are the challenges in providing BDS Services to Rural micro Enterprise? Inadequate appreciation of informal BDS services Perceived to be exploitation Demand for facilitation services (doing) THAN just providing services Low Literacy Level – amongst micro Entrepreneurs Ability to acquire different skills relating to Business/BDS Services Varying needs of micro Enterprises Even with in the same Value Chain
  11. 11. What are the challenges in providing BDS Services to Rural micro Enterprise? Sustainability/Profitability Inadequate appreciation on financial sustainability of BDS providers Inadequate focus of mainstream development organizations on BDS Both Civil Society Organizations (CSOs) and Government Near absence of interface between private sector (having access to technology and market) and development sector (having resources to facilitate BDS Absence of Models relating to BDS Services
  12. 12. What are potential options for BDS Services to Rural micro Enterprise? Independent Village based BDS Providers Independent Value Chain based BDS Providers Village Livelihood Facilitation Centre led BDS Providers CBO (including SHG/SHG Federation) led BDS Services Government Extension Department led BDS Services Agriculture Retail Outlet led BDS Services
  13. 13. What are potential options for BDS Services to Rural micro Enterprise? Corporate (Input supply/Procurement Companies) led BDS Services As embedded service Trader led BDS Services Local CSO led BDS Services Micro Enterprise Peer Network led BDS Services ICT initiative led BDS Services Industry Association led BDS Services
  14. 14. Thank you

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