Profile of Business Development Services (BDS) across Enterprises in India
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