This document discusses business development services (BDS) for rural micro-enterprises. It outlines that rural micro-enterprises are usually small, informal operations that are often family-owned and engaged in agriculture or skilled trades. BDS provides support services to start and strengthen these enterprises in areas like technology, marketing, raw materials, and enterprise management. BDS services are currently provided by family, friends, development workers, private companies, and banks. The document also discusses the different types of BDS services, approaches to delivery, pricing options, challenges, and potential models for improving access to BDS for rural micro-enterprises.

1. Business Development Services (BDS)
for Rural micro Enterprises….
Jitesh Panda
Vrutti Livelihoods Resource Centre
1st April 09

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. 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. Who provides BDS Services to micro
Enterprises?
Family Members
Friends
Relatives
Money Lenders
Village based Key Informants
Other Entrepreneurs

5. Who provides BDS Services to micro
Enterprises?
Development Workers (CSOs and Govt.)
PRI Functionaries
Buyers/ Traders
Private Companies
Banks

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. 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. 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. 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. 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. 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. 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. 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. Thank you