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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/710

Title: BUSINESS DEVELOPMENT SERVICES (BDS) FOR MICRO AND SMALL ENTERPRISES (MSEs): Performance and Sustainability of Selected Programs in Addis Ababa
Advisors: Dr M.D.Bavaiah,
Keywords: Business Development Services
Micro and Small Enterprises
MSE Operators
BDS Providers
Copyright: 2006
Date Added: 21-Apr-2008
Publisher: Addis Ababa University
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.
Description: A Thesis submitted to the school of graduate studies of Addis Ababa University in partial fulfillment of the requirements for the degree of Master of Arts in Regional and Local Development Studies (RLDS)
URI: http://hdl.handle.net/123456789/710
Appears in:Thesis - Regional and Local Development

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