Profile of BDS across Enterprises in India 020409


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Profile of BDS across Enterprises in India 020409

  1. 1. Profile of Business Development Services (BDS) across Enterprises in India Jitesh Panda* Access to inputs/raw material, technology, skill/professional expertise, markets and also credit is critical for functioning and growth of an enterprise. It is difficult for any enterprise, to build in internal capacity in these areas. Building internal capacity increases the cost of operation. At times, it is also desirable to access such latest inputs/knowledge from out side. This would make the enterprise competitive in the market place. Business Development Services (BDS) refers to all types of support services required to start or strengthen an enterprise. Support services may relate to technology, marketing, sourcing raw material or even credit linkage. Demand for BDS would vary with size of enterprise, availability of internal expertise and also the nature of business. Usually, large enterprises are associated with high investment and have more number of employees, including having professional skills. These are mainly formal organizations and are registered. These enterprises require occasional BDS which is strategic in nature. Currently BDS services are provided by both Government and Consulting Firms. Small and Medium Enterprises (SMEs) have medium level of investment, with less number of employees. Usually, entrepreneur is involved in day to day activities. Demand for BDS from SMEs is high. These enterprises require periodic BDS, mainly for operational services. Currently, SME Associations and also Government is offering BDS services. Micro Enterprises are associated with low investment and have only few employees. These are informal unregistered entities. In case of micro Enterprises, the need for BDS is quite high. However, as the micro Entrepreneurs are ignorant and not vocal, their need do not get translated as demand. Currently they access BDS mainly from family members and/or other entrepreneurs. Government has limited focus on providing BDS to micro Enterprises. In absence of paying capacity with micro Enterprises, consulting firm is unable to provide BDS. Most of the Civil Society Organizations (CSOs) working with such micro Entrepreneurs (being poor and marginalized) have inadequate capacity and resources to be able to meet their demand for BDS. Most of the micro Enterprises operates in isolated manner. There is hardly any association/network of micro Enterprises to aggregate/pool demand for BDS. There is an urgent need to facilitate BDS supporting the micro Enterprises. This would contribute to process of industrialization and eradication of poverty in India. Senior Consultant, Catalyst Management Services (CMS), Bangalore Email: