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Models for the Design, Delivery

and Monitoring of BDS


Building Capacities of Growth-Oriented
Microentrepreneurs
National Conference on Business Development Services
May 21 - 22, 2009
Challenges in Delivering BDS
• Establishing priorities, making choices
• Effective delivery
• Sustaining programs
• Monitoring impact
The BDS Process
Designing
and
Selecting

Monitoring
Delivering
Selecting BDS
Types of BDS
• Market Access – marketing business, trade fairs, market info, subcontracting
and outsourcing, showrooms, packaging, advertising
• Infrastructure – storage and warehousing, transport and delivery, business
incubators, telecoms, money transfer, internet access, etc.
• Policy/Advocacy – training in policy advocacy, conferences, policy studies,
etc.
• Input Supply – linkages to suppliers, facilitating bulk buying groups,
improving supplier capacity, etc.
• Training and Technical Assistance – mentoring, feasibility studies and
business plans, franchising, management and technical training, legal services,
advisory services, accountancy and bookkeeping
• Technology and Product Development – technology
transfer/commercialization, facilitating technology procurement, design
services, quality assurance programs, etc.
• Alternative Financing Mechanisms – factoring, equity financing, facilitating
supplier credit, etc.

Source: Small Enterprise Education and Promotion Network


Organization Issues
• Organizational capacity
• Other providers
• Sustainability
Capacity Issues
• Extent that BDS is part of core business?
• Available human and organizational
resources (staff, teams, systems) to provide
BDS?
• Financial resources?
• Business models?
Beneficiary Issues
• Stages of enterprise development
• Needs/demand for specific services
• Ability/willingness to pay
Determinants of
Resources Beneficiary Needs
Basic Services
Infrastructure Experience
Market Knowledge
Accessibility Personal/ Entrepreneurial
LGU/ Other Geographic Institutional Skills
government Area Circumstances
Management
programs Abilities
Culture Networks
Access to capital
Values
Existing and Nature of the
Potential Business
Markets
Competitors
Technologies
Inputs
Support
Services
Supply Chain
Program Models
• Sub-sector led – choose subsectors that show promise of
high MSE growth or that generate significant levels of
employment
• Demand led – Demand for specific services determine the
programs
• Target population led – program is focused on a target
population
• Services led – Replication of services already provided
successfully
• Supplier led – Direct providers determine what services
will be provided
• Broad economic development – driven by cross-sector
situations
Selection Tools
• Client/beneficiary information, profiles and needs
analysis
• Subsector analysis, value chain analysis
• Market assessment tools – secondary research,
interviews of key informants, consumer surveys,
focus group discussions, supplier interviews
• Demand analysis
• Action Research (test marketing)
• Participatory Rural Appraisals
Delivering BDS
Types/Categories
• Training and technical assistance
• Marketing support – input supply,
technology and product development,
market access
• Business environment – infrastructure,
policy/advocacy, alternative financial
mechanisms
Delivery Approaches
• Direct service provision – Implementing agency
provides services directly to MSEs.
• Facilitation/ market development – Promoting
the commercial provision of services through local
markets.
• Systemic – support provided to entire market
systems (analysis of BDS markets and value
chains, integration in local and international
markets), increasing development of embedded
and bundled services.
Direct Service Provision
• Services: Training courses, advisory services,
technical services (accounting, legal, etc.)
• Institution Examples: PBSP, Notre Dame
Business Resource Center (BRC), UP-ISSI,
INSOL, various MFIs, government agencies,
commercial providers, etc.
• Advantages: Providers tailor services to the needs
of clients/beneficiaries
• Shortcomings: 1) limited reach, 2) often requires
subsidies (given weak market in many areas), 3)
cost to impact ratio is high
Shifts in International BDS Trends

• 1980s to late 1990s: Traditional – direct


provision with full or partial subsidies
• Late 1990s to early 2000s: BDS market
facilitation
• Post 2002: Incorporation of systems
approaches – value chains, “Making
Markets Work for the Poor”
Facilitation/Market Development
 Services: B2B directories, magazines/publications
promoting BDS services, forming
clusters/associations, support for MSEs to
participate in trade fairs, fostering linkages with
bigger firms
 Institution Examples: Planters Bank, Pinoy ME,
PEF, PDAP, PBSP
 Advantages: If successful, long-term
sustainability and wider access by MSEs to these
services.
 Shortcoming: Difficult in weak markets (market
can not and will not pay for services).
Systemic Market Development
• Services: engaging MSEs in value chains, product
development, input supply development,
packaging, marketing
• Institution Examples: SDC Asia , UMFI,
PEF/PCCI, Normin Veggies, PDAP, Hapinoy
Stores, Echo Stores
• Advantages: MSEs recognize value, efforts are
aligned with the market, sustainable
• Disadvantages: Requires greater management
effort (relationship building and maintenance, trust
and confidence, communication, transparency,
etc.)
Sustainability
• Fee for services
• Embedded services
• Third-party payment
• Piggybacking on Other Services
Monitoring Impact
• Outreach
• Sustainability and Cost Effectiveness
• Impact
Lessons Learned
• Need for market research (who needs what, who
will buy/pay, who already provides)
• Critical need to know your clients/beneficiaries
(what are their needs, where are they going, how
can we help)
• Systems approaches are becoming increasingly
favored
• Value of partnering and networking
• Need to improve performance monitoring and
evaluation

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