Ethiopian Business
Development Services (BDS) Network
Contact:
info@bds-ethiopia.net
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Mobile
0911-24.42.70
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Addis Ababa
BDS - Newsletter
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No. 8 - December 2005
New Business Support Project of UNIDO - Cluster Development
On September 29, 2005 UNIDO launched the second phase of its MSME support project “Unleashing the Potential of MSMEs in Ethiopia”. The project will be running for four years and is focusing on Cluster Development as the tool to support the MSME (Micro, Small and Medium Enterprises) sector.
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Having achieved great success in many other countries, UNIDO will initially introduce its methodology in the sub-sectors of textiles, leather, footwear and metal/woodwork in selected regions. The project will be implemented in close collaboration with the Federal Micro and Small Enterprise Development Agency (FeMSEDA) and benefit intermediary institutions like the Regional Enterprise Development Agencies as well as entrepreneurs directly. |
Contacts: Katharina Swirak, Associate Expert, UNIDO Ethiopia, katharina.swirak@undp.org, Telephone: +251 11 5444040. Tezer Ulusay de Groot, Project Manager, Vienna, T.Ulusay-de-Groot@unido.org, Telephone: +43-1-260265359
More about Business Development Services and the BDS-Training workshop programme:
"BDS-Toolkit. Demand-driven Business Develop-ment Services"
and Powerpoint Presentation:
"Demand-driven BDS"
for Download under
How to put BDS into Practice
What are
demand-driven Business Development Services (BDS)?
Business Development Services (BDS)
are non-financial services provided by private BDS
providers and public support institutions to
entrepreneurs who use them to efficiently operate and make their businesses
grow. The types of services in a demand-driven BDS system are determined by
the demand articulated on the part of the businesses: Marketing access and input
supply services, technology and product development, tender guide,
import-export guide, business planning, business management and technical
assistance, policy and advocacy and access to finance.
Steps of a
6-month BDS-Cycle Approach
BDS facilitators hold regular contact with selected business owners - common situation
and problem analysis - action-planning -
and delivery of demand-based services to business
owners in collaboration
with competent service providers.
Needs Assessment
and Action Planning
Each of the BDS facilitators selects 15 business owners for support in the
next 6-month period. The facilitator in the first month
assists the business owner
in identifying the main business problems and in proposing his own
solutions.
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Situation analysis (for 15 enterprises) |
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Name, Activity, Place, Equipment |
Products + Services |
Supply, Sales, Clients, Marketing |
Staff / Business Management |
Costs per month |
Problems/Solutions identified by the owner himself |
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Business 1 |
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Business 2... |
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Then, the BDS facilitator helps the business owner to refine his/her own proposals in an Action Plan and makes additional suggestions.
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Action Plan (for 15 enterprises) |
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Name, Activity |
Problems identified |
Proposal for Action |
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Self-help of the owner |
Additional BDS support |
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Business 1 |
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Business 2 ... |
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BDS Delivery
Finally in the following 5-month period,
the facilitator not only provides the business with
on-the-spot advice in bookkeeping, business
planning and other support needed
but also links the business to competent service
providers (training centres, trade fair
promotors, tax advisors, export department and financial
institutions) in order to get the necessary support. With this approach 500 BDS facilitators supported about 9,600
business owners in 2005 with a success rate of 75%.
Training of BDS Facilitators
Only participants of organisations that are willing to put BDS immediately
after the training workshop into practice, are admitted. The 5-day BDS
training workshop, after an introducive part, includes training in the
field: Participants by groups of two contacting a business owner and doing a
situation analysis. In the plenum about ten enterprises are put together in
an action plan. Insufficiencies are discussed and modified after a second
field visit. At the end, the first BDS cycle time table will be prepared and
the date of the real beginning agreed.
BDS Success Story: Municipal Garbage Collection
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Impact: ● 137 jobs secured with regular income; |
Problems: ● 137 unemployed youth (90% women); ● Cleaning jobs despised; ● Cleaning services in short supply;
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Lack of start-up capital and Support provided for by BDS facilitator:
● Organised the 137 youth into two
● Raised the awareness of the youth to
● Credit facilitated by linking them to a
● Linked to 1,200 households for
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● Residents of Addis Ababa Ketema receiving cleaning services;
● 1,200 clients are paying 3-20 Birr/month each to the cleaning cooperatives;
● Members want to expand their activity with heavy duty transport facilities.
Ethiopia Trade Expo
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December 28/2005 -
January 6/2006
Venue: Addis Ababa Exhibition Centre. Organizer: Century
promotion
Participants: 300 companies including 90 participants from abroad, 60 companies in manufacturing (leather, textile and other sectors)
Contact: Tel 251-1-12 765182/ 251-1-12 777557/58. Email: century@ethionet.et
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