BDS market development guide.pdf - PACA

More documents

Recommendations

Info

26 services they want. This requires that some form of market analysis should precede intervention. 2. Markets are formed through the interaction of supply and demand, which, even though they affect each other, are independent. This means that to understand why a market fails to serve SME one must understand the weaknesses in both supply and demand. 3. Interventions should be tailored to the weaknesses of supply and/or demand, and should minimize long-term distortions by limiting subsidies and planning exit strategies. 4. Sustainable access to BDS is not organization driven, but market driven. This means that measuring sustainability should be based on a dynamic BDS market where transactions are ongoing and increasing, not on the success or failure of an individual organization. Microenterprise Best Practices Development Alternatives, Inc.
27 CHAPTER THREE WHERE DO WE WANT TO GO?—DEVELOPING A CLEAR PICTURE OF SUSTAINABILITY We’ve always been interested in generating longer-term SME sector change and growth through our short-term interventions. The picture of BDS sustainability was clear: the state would continue to offer and pay for services because it was good for the country. Or is it: the picture depends on continued subsidy, and it blurs expectations between SMEs and suppliers. A more-focused picture for the future is one where the capacity of markets is strengthened to ensure sustainable access to BDS. Developing sustainable markets is not just concerned with transactions between BDS consumers and suppliers but with a range of functions—information, research, product development, and regulation—without which transactions won’t take place. This chapter defines sustainability in BDS and sets out the reasons why an explicit view of sustainability in BDS is so important. The chapter sets out a framework for sustainability, linking key actors (and their core areas of competence) with supply-side functions, and summarizes what this sustainability picture might look like. Key Questions: 1. What are core market functions? 2. Who are the key market players? 3. Which player performs what function best? 4. Who pays for this function to be performed? WHAT DOES SUSTAINABILITY MEAN IN BDS MARKET DEVELOPMENT? The starting point in any intervention is an understanding of the market in which we’re interested and, in particular, of the constraints that inhibit market development. Parallel with this analysis, however, it is important to develop a clear view of where an intervention is going—that is, of how it is envisaged that BDS markets will operate in a sustainable manner in the longer term. Although sustainability has long-held a prominent place in development vocabulary and is generally seen to be important, it is seldom defined tightly or operationalized into tangible objectives and activities. This has been especially so in BDS interventions, and it is a flaw that needs to be remedied if BDS interventions, are to become more successful. To make sense of sustainability, we need to think through the implications flowing from a general definition. In general, sustainability is: 19 19 From Sustainability in NGO development projects; ODA, 1995. Chapter Three—Where Do We Want to Go?— Developing a Clear Picture of Sustainability
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 14 and 15: 4 • Potentially, a range of provi
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: 25 Figure 10: Matching Market Analy
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
Page 67 and 68: 57 C Informal, and C Individuals. T
Page 69 and 70: 59 The drawbacks of tender-based se
Page 71 and 72: 61 CHAPTER FIVE HOW DO WE ASSESS OU
Page 73 and 74: 63 • How well?—the quality dime
Page 75 and 76: 65 day income * This highlights key
Page 77 and 78: 67 Beyond SMEs—Unchanged Indicato
Page 79 and 80: 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
show all

BDS market development guide.pdf - PACA

Create successful ePaper yourself

Delete template?

Save as template?