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Presented at SMME Awards 21st Oct 2010

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Presented at SMME Awards 21st Oct 2010 Purpose of BDS BDS are designed to serve individual businesses, as opposed to the larger business community. – PowerPoint PPT presentation

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Title: Presented at SMME Awards 21st Oct 2010


1
Presented at SMME Awards 21st Oct 2010
  • The Role of BDS in MSME Financing Should it be
    deliberate or coincidental?


2
Paper Plan
  • Business Development Services Defined Global
    View
  • Purpose of BDS
  • Business Development Services Core Components
  • Business Development Services NYDA Perspective
  • Real Life Situation Case Studies Two Cases
  • Role of BDS Taking A Position

3
BDS DEFINED THE GLOBAL VIEW
  • Business Development Services (BDS) are generally
    defined as
  • services that improve the performance of the
    enterprise, its access to markets, and its
    ability to compete.
  • Source Committee of Donor Agencies for Small
    Enterprise Development, 2001)

4
Purpose of BDS
  • BDS are designed to serve individual businesses,
    as opposed to the larger business community.
  • Individuality of BDS

5
BDS CORE COMPONENTS
  • The definition of business development
    service includes an array of business services
    (core components)
  • Training
  • Consultancy
  • Marketing
  • Information
  • Technology development and transfer
  • Business linkage promotion

6
Key Components Defined
  • 1. Market access
  • Market research
  • Market information
  • Trade fairs
  • Product exhibitions
  • Advertising
  • Packaging
  • Marketing trips and meetings
  • Subcontracting and outsourcing, etc.

7
2. Infrastructure
  • Storage and warehousing
  • Transport and delivery
  • Business incubators
  • Telecommunications
  • Internet access
  • Computer access
  • Secretarial services, etc.

8
3. Policy and advocacy
  • Training in policy advocacy
  • Analysis of policy constraints and opportunities
  • Direct advocacy on behalf of MSMEs
  • Sponsorship of conferences
  • Policy studies, etc.

9
4. Input supply
  • Linking MSMEs to input suppliers
  • Improving suppliers capacity to deliver quality
    inputs
  • Facilitating establishment of bulk buying groups
  • Information on input supply sources, etc.

10
5. Training and technical assistance
  • Mentoring
  • Feasibility studies
  • Business plans
  • Franchising
  • Management training
  • Counselling / advisory services
  • Legal services
  • Financial and tax advice
  • Accountancy and bookkeeping
  • Technical training, etc.

11
6. Technology and product development
  • Technology transfer /commercialization
  • Linking MSMEs and technology suppliers
  • Facilitating technology procurement Quality
    assurance programmes
  • Design services, etc.

12
7. Alternative financing mechanisms
  • Factoring companies providing capital for
    confirmed orders
  • Equity financing
  • Facilitating supplier credit
  • Equipment leasing and rental,etc.

13
BDS NYDA PERSPECTIVE
  • Entrepreneurship Education An Entrepreneurship
    Training programme aimed at developing Personal
    Entrepreneurial Competencies (PEC) of aspiring
    and existing entrepreneurs.
  • Business Consultancy Services/Voucher Programme
    A one-on-one support service, normally over a
    three month period, where a voucher is issued to
    a client or a group of clients, which entitles
    them to buy business support services from NYDA
    approved, suitably qualified and experienced
    Service Providers.
  • Mentorship Programme (Volunteer In Action
    Mentorship Programme) This is a mentorship
    support programme which is aimed at linking young
    entrepreneurs with experienced business mentors.
  • BUY YOUTH CAMPAIGN (Business Opportunities
    Support Programme)The Buy Youth Campaign is an
    initiative aimed at assisting youth entrepreneurs
    to access identified business opportunities
    thereby increasing the participation of young
    people in the countrys mainstream economy and
    also advancing the governments objective of
    broadening economic empowerment among the
    historically disadvantaged individuals

14
CASE STUDIES
  • Case Study One Mentoring
  • Dibete Financial Services
  • Sindi, the owner of Dibete who is herself now a
    mentor, is a mentorship product. She was facing
    high personnel costs in that she was employing
    experienced accountants in her business who were
    getting very high salaries. After enrolling in
    our mentorship programme, she was advised to use
    university 3rd year accounting students and she
    was able to cut her salary costs by over 50.
    This enabled her to easily service her loan.

15
CASE STUDY TWO BOSS
  • NYDA youth financed businesses are linked with
    markets whereby their products are exposed to
    pontential buyers including government
    departments. This enables them to have a ready
    market for their products and therefore remain
    competitive and able to service their loans.

16
THE ROLE OF BDS TAKING A POSITION
  • GIVEN THE COCKTAIL OF ACTIVITIES IN BDS
    PROGRAMME, WHICH ARE ALL KEY IN BUSINESS
    SURVIVAL, IT IS EVIDENT THAT BDS SHOULD BE
    DELIBERATE RATHER THAN COINCIDENTAL IN ASSISTING
    MSMEs in SERVICING THEIR LOANS!!!
  • TAKE OFF FINANCIERS MUST BEGIN TO INCORPORATE
    BDS IN THEIR FINANCING PROGRAMS

17
END OF PRESENTATION
  • THANK YOU!
  • VISIT WWW.NYDA.GOV.ZA
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