1. Business Development Services for
micro Enterprises (BDS4ME)
across the World
Jitesh Panda
Vrutti Livelihoods Resource Centre
22nd July 2009

2. References from the Document…..
BDS UPDATE
Fourth Annual BDS Seminar, Turin, Italy
September 2003
By: Alexandra O. Miehlbradt and Mary McVay for the
Small Enterprise Development Programme
of the
International Labour Organization (ILO)

3. Azerbaijan…
Organization: Mercy Corps
Background: International NGO
Clients: Small scale livestock farmers
Services: Training veterinarians with training and
assistance in marketing, business planning, and
Management; who in turn proving services to small scale
livestock farmers
Payment: Grant Funded by USAID
Learning: Veterinarians could access new skills;
Beneficiary including women could access service in
groups

4. Bangladesh….
Organization: KATALYST
Background: Funded by a donor consortium and
implemented by Swisscontact and GTZ International Services
Clients: SMEs through Partner Organizations
Services: develop Cross-sector business services markets;
Industry and Rural business services markets; Media services
markets and Conducive Business Environment
Payments: NA (likely to be grant project linked)
Learning: Able to integrates crosscutting issues such as
environmentally responsible business, socially responsible
business and gender

5. Bulgaria….
Organizations: UBDP, ILO, Ministry of Labour and
Social Policy
Background: A development project
Clients: micro Entrepreneurs
Services: Setting up Business Centres, Incubators and
Business Information Centres
Payment: 33 to 84 % cost recovered by Business Centres
Status of Service: Project completed; BDS available
through Business Centres
Learning: Building on existing local initiative, focusing
on ICT and on simplicity of model led to success of the
project

6. Guatemala…
Organizations: Aid to Artisans and AGEXPRONT
Background: Aid to Artisan (NGO); AGEXPRONT (An
association of Exporters)
Clients: Artisans
Services: Organizing Trade Shows, Training and Product
Development
Payment: Earlier subsidized services; Planned to provide fee
for services
Learning: Stimulating market demand may work;
Possibility of developing business plan for BDS facilitation (as
developed by AGEXPRONT, income coming through
membership fees and proceeds from workshop/events

7. Egypt….
Organization: FfIT
Background: Development project supported by CIDA and
Government of Egypt
Clients: Potential Entrepreneurs belonging to marginalized
population groups
Services: Developing innovative, new small and medium sized
Enterprises through Regional enterprise Development Centres
Payment: Focus was on self sufficiency of Regional Enterprise
Development Centres
Learning: Model could be replicated through other facilitating
NGOs;
Small Enterprise Development programs can focus on women and
take care of concern for environment and child labour

8. El Salvador…
Organization: GTZ
Background: International Organization
Clients: NA
Services: BDS Market Assessment
Payment: NA
Learning: There is a limit to outreach of BDS - Even in well
developed market consulting services reach about 40% of small
enterprises;
Relative prices for BDS is higher where market penetration for BDS
is lower;
BDS program need to focus on awareness and appreciation of BDS
and on improving service quality of BDS Providers

9. Ethiopia…
Organization: ACDI/VOCA
Background: A USAID funded Horticulture Development
Project
Clients: Small Scale Farmers growing Fruits and Vegetables
Services: Strengthening ties between exporters and
cooperatives;
Introducing embedded services to farmers such as training and
quality control standards along the market chain
Payment: Embedded Service (indirectly paid as part of
business transaction)
Learning: NA

10. Honduras…
Organization: Fintrac
Background: USAID-funded Agribusiness Project
Clients: Small Farmers and Agri Businesses
Services: Increasing the demand for BDS;
Enhanced availability of BDS through local
commercial service providers;
Also facilitated Custom Clearance and Marketing
Services
Payment: Commercial Service – fee for service
Learning: BDS helped to reach out to more farmers
than was originally covered under the project

11. Honduras….
Organization: FINTRAC
Background: USAID funded horticulture development
program
Clients: Small Scale Farmers
Services: Linking farmers with better input supplies and
market;
Information services to farmers through input suppliers
Payment: Free during project; Difficulty to sustain service
after the project
Learning: Able to reach more farmers at lower cost;
It has become difficult to continue the research and
publication service in the long run

12. India…
Organization: SEWA
Background: NGO and MFI
Clients: Salt Workers
Services: Organized Workers;
Social (health, childcare and water) services;
Market linkage services; and
micro Finance services
Payment: NA
Learning: Holistic services has supported improvement of
lives of salt workers

13. India….
Organization: EDA Rural Systems
Background: NGO
Clients: NA
Services: BDS Market Assessment (Leather Footwear
Cluster)
Payment: NA
Learning: Important to use Entrepreneur own language in
assessment process;
Assessment process was educational for the Entrepreneurs;
Entrepreneurs identified fee-for service, embedded, and
informal BDS experienced by them

14. Kenya….
Organization: World Bank
Background: Kenya Training and Business
Development Services Voucher Program
Clients: Small Enterprises
Services: Training Services through BDS Providers
Payment: NA
Learning: BDS had indirect benefit to economy and
Employees associated with different Enterprises

15. Kenya….
Organization: DTTEM Ltd
Background: USAID funded Kenya Business Development
Services Program
Clients: Rural micro and Small Enterprises
Services: Services like product assembly and grading, quality
assurance, market information, financial brokering, research and
development, appropriate technology, business skills training, and
material input supply were identified through a step by step process;
Related BDS was provided BDS Facilitators (both NGOs and
Private Firms; International and National) identified through
selection process
Payment: Small Grant from Project
Learning: Step by Step implementation of the project facilitated
BDS

16. Kenya…
Organization: ITDG
Background: INGO
Clients: Small Entrepreneurs unable to access
internet
Services: Enhance access to internet information
through Informal Business Advisers; ITDG provides
sector specific business tips in Internet
Payment: NA
Learning: Helped develop intermediary BDS Market

17. Kenya….
Organization: Twendelee
Background: Women Handicraft Group based at
Nairobi; supported by EU Micro Enterprise support
program
Clients: Women associated with production of
Handicrafts
Services: Services related to use of Internet to strengthen
business (like deciding color choice and design)
Payment: Free service through Technical Service
Provider; Payment for use of Internet
Learning: Able to get idea on new designs

18. Kyrgyzstan…
Organization: Helvetas Swiss Association for International
Cooperation
Background: Support to Private Initiatives Project (SPIP), supported
by SDC and GTZ
Clients: Small and Medium size Agri Processors
Services: Project facilitated links between food processors, Kyrgyz
traders, and buyers in Russia by hosting workshops and buyer-seller
meetings; This led to demand for BDS;
Later a Private Company led Information and Technical Center sold
information about markets, equipment, and finance to food processors
and traders
Payment: Initial effort through Grant Project; Later BDS Services to
businesses on fee for service basis
Learning: Voucher type BDS Intervention did not work as Processors
did not experience previous consulting services

19. Kyrgyzstan…
Organization: Helvetas Swiss Association for International
Cooperation
Background: INGO
Clients: Rural Food Processors
Services: Overall focus was to link Rural Food Processors to Urban
Management Consultants;
Urban Management Consultants formed Association of Consulting
Companies (ACC) to develop the market for consulting services,
increase competence of consultants; and defend the consulting
market from “market distortion” and “improper” interventions by
donor agencies
Payment: Urban Management Consultants offered services on fee
basis
Learning: Initial Meeting between Consultants with Food
Processors was useful to develop BDS Market in the long run

20. Malawi….
Organization: GFA and GTZ
Background: Establishing Franchise for Training Products
Clients: Small Entrepreneurs
Services: Initially, GFA established BEED, a private company, as the
franchiser and license holder. BEED trained trainers who were to sell
training to entrepreneurs and pay a licensing fee to BEED, which would
re-invest profits in further capacity building of franchisees;
Later, BEED became a broker for training contracts to trainers and the
payers were government and parastatal organizations, with
contributions from participants.
Payment: Grant from Govt. and Contribution from Beneficxiaries
Learning: Initially, trainers were not able to sell training directly to
SEs, due to high costs, lack of marketing skills, and highly distorted
training markets

21. Mali…
Organization: Action For Enterprise (AFE)
Background: USA based International NGO focusing BDS
Market Development
Client: Exporters (indirectly benefiting Artisans)
Services: Facilitator and Action Research – linking Artisan to
international Market
Payment: Grant project of USAID Office of Micro Enterprise
Development - Implementation Grant Program for BDS
Status of Service: Grant Project already Implemented
Learning: Could built Exporters capacity to offer quality
control services to Artisans

22. Nepal….
Organization: Business Service Adhar
Background: Promoter is Entrepreneur in Business
Service Market
Clients: DTP Units serving small Enterprises
Services: Services DTP Units to become Advertising
Firms for small Enterprises
Payment: Fee for Service
Learning: NA

23. Nepal….
Organization: GTZ
Background: International Organization
Clients: Micro and Small Enterprises
Services: Accounts Training Service through Commercial
Accounting Firm
Payment: Mainly Fees from Participants, supported by Grant
from GTZ
Learning: Demand for accounting services from micro and
small enterprises to comply with Value Added Tax;
In the long run service was profitable to accounting firm;
Possibility of replicating the service through Franchise was
explored

24. Peru…
Organization: Swisscontact
Background: INGO
Clients: Small Enterprises
Services: Information about Trainers and Training
Market through Information Magazine on the BDS
Market
Payment: Magazine is funded by advertising from BDS
Suppliers
Learning: Found to be potential “exit strategy” from the
information function of a voucher program; Trainers
could know trends in BDS Market

25. Peru….
Organization: Chemonics and ITDG; Mennonite Economic Development
Agency (MEDA)
Background: USAID-funded Project to Reduce and
Alleviate Poverty (PRA)
Clients: Farmers
Services: Advice, inputs, markets, and finance to Farmers;
Input suppliers, agro-processors, buyers, and an MFI co-finance loans to
farmers and share collateral. If the crop is good and sale successful, buyers
pay the MFI, which then pays all parties. In case of disaster, all parties take
a loss.
Agromonitor – An information gathering system support this system
Payment: Embedded with Loan
Learning: Combination of finance and BDS shows promise for improving
the agricultural production and market chain to the benefit of all parties

26. Philippines…
Organization: Strategic Development
Cooperation–Asia
Background: USAID-funded program to
develop BDS markets for micro Enterprises
Clients: Small Enterprises
Services: Brand and market space rental
services to Small Enterprises with support of
local firm
Payment: Fee for Services
Learning: NA

27. Philippines…
Organization: GTZ Nepal and Strategic Development Cooperation - Asia
Background: As part of Projects focusing on BDS Market Development
Clients: Small Entrepreneurs
Services: Assisting existing BDS providers to develop and commercialize
new products;
Conducts regular BDS Market Assessment
Payment: Fee for Services by BDS Providers
Learning: Incidence of “copycat” BDS providers delivering the BDS
products;
More enterprises are purchasing the BDS, particularly groups such as
women-owned enterprises;
Target enterprises are using business services
Systematic market monitoring helped in adjusting the interventions to
changing conditions in BDS markets

28. South Africa…
Organization: GTZ
Background: International Organization
Clients: Small Enterprises in Urban Areas
Services: BDS Market Assessment to identify service
markets
Payment: NA
Learning: Analysis of the Market Assessment data
using different tools helped in identifying unmet
demand and pinpointing BDS service features and
benefits that Small Enterprises want

29. South Africa….
Organization: World Education
Background: NGO
Clients: micro Enterprises in Construction Sector
Services: Facilitated BDS services such as information, compliance,
project management, and transaction financing for both large and
small firms through existing BDS Providers;
Developed new service products;
Strengthened linkage between small and large firms
Payment: NA
Learning: With BDS services, micro Enterprises could win higher
value sub contracts;
Initial BDS Market Assessment was useful in designing the program

30. South Africa…
Organization: Triple Trust Organization (TTO)
Background: NGO
Clients: Spaza (Hidden) shop Owners
Services: Assessed potential for offering BDS
Services using idea of BDS Product concept like
“What If “ specific BDS was made available
Payment: NA
Learning: NA

31. Srilanka….
Organization: SEEDS
Background: NGO operating mFI and BDS Program
Clients: mFI Clients
Services: Training, counseling and technology access
through Business Advisers
Payment: Fee for BDS
Learning: Instead of providing BDS, mFI will link to
external BDS providers

32. Srilanka…
Organization: GTZ, FINTRAC/USAID, ILO/FIT
Background: Donor supported BDS Project
Clients: Small Enterprises
Services: Supported Organizations to sell Business
Information Services i.e. General Business Information,
Business Contacts, Market Opportunities, Sector Statistics,
Business Mapping; through Email, Phone, Mail, Visit and Fax
Payment: Offered on Fee for Service to Small Enterprises
Status of Services: On going; Service Providers are offering
Services
Learning: More demand for General Business Service
followed by Information on Business Contact;
With this track record of effective sales, BIS suppliers are now
seeking profitability

33. Srilanka….
Organization: Southern Province, Srilanka and CBTD
Background: Initiative of Southern Province Rural Economic
Advancement Project (SP-REAP) and ILO SIYB; CBTD – A
Development Consulting Group
Clients: Small Entrepreneurs
Services: Technical and managerial training relating to construction
Payments: Entrepreneurs pay 30 % of cost of training
Status of Service: On going
Learning: Implementation through BDS Organization was
successful;
Role of CBTD as BDS facilitator was important;
Small Entrepreneurs could participate in construction tender and
offer quality services

34. Tanzania….
Organization: FAIDA Small Enterprise Program in Tanzania
Background: SNV project supporting rural micro Enterprises
Clients: Rural micro Enterprises
Services: Business training and counselling services;
FAIDA provides services through BDS Training and
Consulting Firms that offer services through network of Grass
root Promoters
Payment: Fee for services to Clients
Status of Service: On going – Market led
Learning: Initially difficult for micro Enterprises to pay full
cost;
Outreach and cost-effectiveness improved dramatically with
market led approach

35. Uganda….
Organization: Creative Business Development
Group
Background: Promoter worked in Donor funded
Project
Clients: Small Enterprises
Services: Training Package and Consulting Services
Payment: Fee for specific Service
Status of Service: Planning Stage
Learning: NA

36. Uganda…
Organization: DFID/ILO
Background: Business Service Market Development
(BSMD) Project
Clients: Small Farmers
Services: Publishing information in local media on existing
businesses providing embedded BDS to Small Farmers
Example – Training provided as embedded service by
Exporter
Payment: NA
Learning: It is possible to strengthen BDS as embedded
service

37. Ukraine….
Organization: Intron - A Private Sector Firm
Background: USAID funded Newbiznet Project
Clients: Enterprises
Services: Replication of valuable accounting service
(Guarantee against Tax Inspection Fine) developed
by Intron, through other BDS Provider
Payment: Monthly Fee for Service at BDS Provider
level
Learning: It is desirable to replicate existing proven
BDS

38. Vietnam….
Organization: Training for Women Micro and Small
Enterprises – Phase 2” (TWMSE2) project
Background: A Development Project
Clients: Women Entrepreneurs
Services: Management Training courses offered through local
trainers
Payment: Grant Project
Learning: New management practices were observed in the
Enterprises;
Women who received training enjoyed higher sales and
personal income

39. Learning Points….
International BDS4ME efforts focuses on:
Developing BDS Market
Both enhancing Demand and facilitating Supply
Conducting BDS Market Assessment
Before taking up BDS Intervention
Exploring option to work with existing BDS Providers
Preferably CSOs, Private Companies and Individual BDS Providers
Facilitation of BDS (than providing BDS)
Through Franchising/Working through local Organizations
Commercialization of BDS Services

40. Thank you