BDS market development guide.pdf - PACA

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4 • Potentially, a range of providers offers these services to SMEs. In the most entrepreneurial situations, private-sector companies and formal and informal networks are the most important players. Traditionally a Low Priority… • The crucial role of services in successful economies is now beginning to be appreciated after a history of neglect. Services are referred to conventionally as the tertiary sector following the primary (extractive—agriculture, fishing, mining, and so on) and secondary (manufacturing) sectors. 3 • The implied priority—with services least important—has been commonly accepted. Economic writers from Smith to Marx have labeled services as unproductive. They were referred to as residual—a leftover category of minimal importance compared with the “real” endeavor of producing commodities and manufacturing goods. • This sense of what was important has been one that <strong>development</strong> agencies and governments have often adopted without much critical attention. The perceived intangibility of services can be easily (and understandably) interpreted as nebulous and weak in comparison with the tangible certainties of physical commodities and goods. For many, production is associated with a kind of moral wholesomeness that renders it positive—sometimes irrespective of its cost, quality, or appropriateness. …Despite Their Obvious (and Increasing) Importance • This lack of priority for services is especially surprising, given their importance in successful economies. In 1998, services accounted for 61 percent of value added in the world economy (up from 56 percent in 1980). In high-income countries, this figure was 65 percent (up from 59 percent); in low-income economies, it was 38 percent (up from 30 percent). 4 Focusing on Business Services • One main reason for agencies’ and governments’ reluctance to make services a priority is the absence of a pleasingly tight definition. Figure 2 shows one common classification using the following services: − Public Administration Services—“core” state functions, such as health, education, security, and some types of infrastructure; 3 4 The discussion on services draws considerably from Riddle (1992). Figures are from the World Bank (1999). Microenterprise Best Practices Development Alternatives, Inc.
5 Chapter One—Why <strong>BDS</strong> Market Development? Why It Is Important and What Is New about It
Page 1 and 2: BDS Market Development: A Guide for
Page 3: Alan Gibson is a co-founder of The
Page 6 and 7: ii CHAPTER FOUR HOW DO WE GET THERE
Page 8 and 9: iv Table 1 Implications of Differen
Page 10 and 11: vi How to Use This Guide: A Quick R
Page 12 and 13: 2 • To address poverty, governmen
Page 16 and 17: 6 Figure 2: Flows of Services in th
Page 18 and 19: 8 • Efficiency—The cost bases o
Page 20 and 21: 10 • Advocacy: for the business c
Page 23 and 24: 13 CHAPTER TWO WHERE WE ARE NOW—A
Page 25 and 26: 15 The flow diagram of an effective
Page 27 and 28: 17 KEY CHARACTERISTICS OF EFFECTIVE
Page 29 and 30: 19 Figure 7: Quadrant of Supply-sid
Page 31 and 32: 21 • Consumers—such as female-o
Page 33 and 34: 23 WHERE SHOULD INTERVENTIONS FOCUS
Page 35 and 36: 25 Figure 10: Matching Market Analy
Page 37 and 38: 27 CHAPTER THREE WHERE DO WE WANT T
Page 39 and 40: 29 Markets are institutions. Develo
Page 41 and 42: 31 What Needs to Be Done?—Key Sup
Page 43 and 44: 33 Box 7: Key Considerations in Ass
Page 45 and 46: 35 Figure 12: Functions of the Stat
Page 47 and 48: 37 Table 2: Sustainability Framewor
Page 49 and 50: 39 CHAPTER FOUR HOW DO WE GET THERE
Page 51 and 52: 41 Figure 13: Where to Intervene to
Page 53 and 54: 43 • Consistent Policies and Appr
Page 55 and 56: 45 • Have been developed to be pe
Page 57 and 58: 47 Avoiding overloading may involve
Page 59 and 60: 49 C For new product development, a
Page 61 and 62: 51 • Precisely, what are they goi
Page 63 and 64: 53 Existing MARKET (sub-sector, ent
Page 65 and 66:
55 To Reach Female-Owned Businesses
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57 C Informal, and C Individuals. T
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59 The drawbacks of tender-based se
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61 CHAPTER FIVE HOW DO WE ASSESS OU
Page 73 and 74:
63 • How well?—the quality dime
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65 day income * This highlights key
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67 Beyond SMEs—Unchanged Indicato
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69 Figure 16: Measurement Methods i
Page 81 and 82:
71 • Donors may be interested in
Page 83 and 84:
73 and poverty reduction? Or is the
Page 86 and 87:
A-3 KEY REFERENCES Anderson, Gavin,
Page 88 and 89:
A-5 Hitchins, R and Gibson, A; "The
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