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Addis Ababa University Libraries Electronic Thesis and Dissertations: AAU-ETD! >
Institute of Regional and Local Development >
Thesis - Regional and Local Development >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/123456789/3010
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| Title: | BUSINESS DEVELOPMENT SERVICES (BDS) FOR MICRO AND SMALL ENTERPRISES (MSEs): Performance and Sustainability of Selected Programs in Addis Ababa |
| Authors: | PHILIPOS, AGEZE |
| Advisors: | Dr M.D.Bavaiah |
| Keywords: | Business Development Services, Micro and Small Enterprises, MSE Operators, Impact
BDS Providers
Sustainability
Outreach |
| Copyright: | Jul-2006 |
| Date Added: | 11-May-2012 |
| Publisher: | AAU |
| Abstract: | Micro and Small Enterprise (MSEs) are the main income generating activities operating in Ethiopian cities and towns. Their contribution to local
economic developments is significant. MSEs are the basic means of survival, particularly in urban areas, and contribute to employment
generation and poverty alleviation. To help MSEs to operate effectively and contribute to economic growth, they need a wide range of Business
Development Services (BDS). BDS includes short-term training, business counselling and advising, market opportunity creation, product deign
and technology, and market premises, among others.
The objective of this research was measuring performance level of BDS providers, in terms of achieving increased impact, expanded outreach and
sustainability. This research covered three institutions that are involved in providing and facilitating support for MSEs in Addis Ababa. The
institutions represent government, nongovernmental organisation (NGO) and a microfinance institution (MFI); and three sub cities. An
assessment guide used in this research was a Performance Measurement Framework (PMF 2001) that proposes a set of quantitative and
qualitative indicators and methodologies for collecting and reporting performance information for BDS programs focused on MSEs. The sample
size was 114 MSE operators. The number of MSE operators in each sub city, and in each of the three selected BDS providers was 38, with equal
representation of sectors. Sample MSE operators in each of sub cities and institutions were selected through a stratified multistage cluster
sampling method, after purposeful determination of sub cities and institutions. Consumer survey, focus group discussions, and key informant
interview were major instruments used to collect primary data.
The results of the study revealed good performance in one component, and inadequate performance in another area. The BDS services are at an
infant stage of development in Addis Ababa. The selected programs enabled big majority of their target groups to acquire, apply and benefit from
their services. Their performance is high in expanding the market for BDS and increasing access of underserved groups to BDS. Level of their
performance in achieving BDS providers’ sustainability is very low. In most cases BDS are donors or supply driven in nature. Not all benefits of
the BDS interventions gained by MSE operators were as intended by the programs. Outreach of the selected programs is low in developing high
quality, diverse and competitive BDS market. The programs did not achieve good level of performance in developing high-quality, diverse and competitive market. BDS programs' challenges include: low level of MSE operators' awareness for majority of BDS, unwillingness to pay for BDS,
lack of diversity of BDS providers and services, sustainability of programs and services, distortion of BDS market, and limited knowledge of BDS
intervention. In general terms, the position BDS market in Addis Ababa might be roughly rated as having weak demand and weak supply status.
The currently practiced approach of the selected BDS providers in Addis Ababa was traditional. The institutions should understand their position
in the market and develop strategic directions for their interventions accordingly. The programs can also capitalize on their strengths as they are
performing well in attaining increased access to underserved groups. The interventions should be designed based on market development
principles to stimulate BDS demand and supply conditions. |
| URI: | http://hdl.handle.net/123456789/3010 |
| Appears in: | Thesis - Regional and Local Development
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