Framework for promotion for micro Enterprises 240709


Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Framework for promotion for micro Enterprises 240709

  1. 1. 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 projects. 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. HD BDS4ME ED CD 1 Vrutti Livelihoods Resource Centre 19, 1st Main, 1st Cross, Ashwath Nagar, RMV 2nd Stage, Bangalore 560 094, India Email:
  2. 2. 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 intervention plans. 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.