BDS Market Development A Workshop Presented by the SEEP Network and the International Labour Organization’s SEED Program BDS Market Development WORKSHOP GOAL To help enterprise development specialists understand commercially oriented business development services (BDS) initiatives.
A Workshop Presented by the SEEP Network and the International Labour Organization’s SEED Program
To help enterprise development specialists understand commercially oriented business development services (BDS) initiatives.
5 Guiding Principles
Discussion: Risks & Rewards
Mrs. Jane Ondiek, small-scale farmer
BDS: Access to technology
Mrs. Jane Ondiek, Small-scale farmer, Kenya
Mrs. Jane Ondiek, small-scale farmer, Kenya
After the death of her husband, Jane’s 6 children almost dropped out of school due to lack of school fees, but with irrigation she now makes enough money to send them to college.
"I’m making enough money now to support my family fully without begging from relatives since my husband died!"
Market Development Approach
Principle 1: Impact-Centered Programs
The focus of BDS programming is to create a POSITIVE IMPACT.
The delivery of business services and the development of service markets are means toward that goal.
What kind of impact does your program seek to achieve?
Who does your program serve?
Micro, Small, and Medium- Sized Firms
and Small-Scale Farmers
Principle 2: Specific, Focused, Tailored Services
Business Development Services must:
Business Development Services?
Are More than...
Business Development Services
They Are Also...
Inputs & Infrastructure
Sector: Jeans manufacturing
Strategy: Help MEs improve quality
Services: Buttonholing, embroidery, input and equipment supply.
Outreach: 4,450 in the year 2000
Sustainability: Break-even in 2000
Principle 3: Demand-Driven Services
SEs pay fees for the services
Acquire services such as advice from buyers or suppliers as part of a business deal.
Veterinary Services in Nepal
PROARTE, a Nicaraguan handicraft company initiated by MEDA
Mutually Beneficial Services…
FIT Business Connect Magazine
Principle 4: Sustainable Services
BDS should be made available to SEs over the long run through financially sustainable delivery mechanisms, institutions, and markets –
In sum, through the PRIVATE SECTOR.
Sustainability Depends On…
Institutional Sustainability More Likely When Subsidized and Commercial Activities Are Separated
Principle 5: Develop Vibrant, Competitive, BDS Markets
...SEs choose to patronize.
Subsidized Program Model
BDS Market Development is new and many questions remain…
Research and development …Product development … Delivery of services …Information Co-ordination …
Skills enhancement … Regulation… Advocacy
3. Who does?
4. Who pays?
Business membership organisations
2. Key supply-side players
Start with understanding the existing
market for services.
BDS MARKET ASSESMENT
Why assess markets?
What do we do with this information?
Constraints To Interventions
Product development &
Promotions, financing, discounts
Linkages & information services
ApproTEC introduced appropriate technology
Seven BDS Market Development Strategies
FIT Uganda SE Radio Program
SE Cluster and Network DevelopmentUNIDO
Manicaland Business Linkage Project
Technical Assistance to Suppliers
ACDI/VOCA Training and Technical Assistance to Polish Business Support Organizations (BSOs)
Product Development and Commercialization
IDE Irrigation Technology: Treadle Pumps
Social Venture Capital
MEDA & PROARTE in Nicaragua
From this experience, and applying basic market thinking, a set of guiding principles has emerged.
Although not all examples represent all principles,
these are the principles to strive for!
Target interventions to address BDS market constraints.
Minimize interventions to avoid BDS market distortions.
Provide market assessment, training, TA – not direct services.
Develop a range of suppliers and service products in the same market – offer SEs choice.
Develop business relationships with suppliers,
mutually beneficial contracts, not grants for direct services to SEs.
Remain Flexible to Rapid Change,
in SE markets and in BDS markets.
Coordinate with other BDS Stakeholders.
Suppliers offering subsidized services undermine efforts to develop BDS markets.
Develop a clear exit strategy.
Plan to leave behind a vibrant, competitive, BDS market.
Risks & Rewards of BDS Market Development
What are some of the risks and rewards of a BDS Market Development Strategy?
THE MARKET DEVELOPMENT APPROACH
A Training Presented by:
The SEEP Network
The International Labour Organization’s SEED Program