CITY BUSINESS PLAN

City Business Plan for Muzaffarpur Municipal Corporation
State Government and Local Government through sustainable partnerships with business
communities, non-government organizations and local communities. Due to the institutional
limitations of urban local bodies to engage private sector investments to cities, the main operational
strategy to promote economic development of urban local economies is to align the Bihar urban local
economic development vision and strategies formulated under the Support Program for Urban
Reforms (SPUR) in Bihar with the national urban (and related) development programmes primarily
for creating enabling environments for the private sector to invest in cities in areas of their core
economic sectors, leverage municipal lands, where available (as well as other government and private
land) for economic development, promote pro poor businesses, enterprise development, and
rehabilitate and promote informal sector growth. An important aspect of improving the business
climate of cities is to establish the comparative advantages of the various urban centres and economic
clusters through market analyses of investment potential and identification of value chains for
establishing where public and private sector interventions can unlock unexploited opportunities. The
City (Municipal) Business Plan (CBP) is recommended as an operational tool:
to conceptualize and guide the private sector and business community to identify the core
economic competitiveness of cities and facilitate a productive investment dialogue with local
governments and communities
to isolate the comparative advantages of the cities to provide the required basic information
and investment perspectives on the economic development potential and guide potential
investors to direct their resources to realize maximum economic returns
to study the value chain linkages of local enterprises and strategic interventions to enhance
profitability and sustainability orientation; identify viable investment plans for improving the
business linkages between small and micro enterprises
to identify the procedural reforms needed at municipal and district levels to reduce the
investment transaction costs to prospective private investors4
1.7 Approach and Methodology
The approach and methodology of the study involved extensive group consultations (that is Focus
Group Discussions) as well as individual consultations with officials representing the support system
and entrepreneurs representing individual enterprises (partly using a questionnaire schedule, which in
effect served more as a discussion format), industry associations and Chambers of Commerce
involved in manufacturing, trading, retail and wholesale, as well as related critical service sector
activities like cold store and training operations. In addition, street vendors were also directly
consulted.
4 LED Operations manual
Final Report
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