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Business Development Services

Our goal is that small enterprises in poor communities are accessing the business development services they require to operate effectively from sustainable service providers.

  • Small enterprises play a vital role in the economic growth of developing countries, typically accounting for over 90% of business establishments. In many developing countries SMEs account for as much as 70% of the labour force. For many women a small enterprise is the only means of earning money.

  • Small enterprises, however, face increased risks as they seldom have sufficient reserves, face strong competition and only have limited productive capacities.

  • In a majority of situations, small enterprises do not have access to the full range of services at the right price or quality they need to increase their competitiveness and attract fair prices for their goods and services.

  • Our goal is that small enterprises in poor communities are able to effectively access the business services they require from sustainable service providers. Our vision of success is that, through the use of such services, small enterprises are able to grow sustainably, becoming less vulnerable to economic and environmental stresses and shocks.

Goals for 20009

Target

Target figure

Status

Develop an integrated programme with targets

N/A

Achieved - programme including targets developed.

Review the Business Development Services programme and report on recently completed and current Traidcraft Exchange projects and services to capture learning and identify gaps in current practice

Report to be presented to the Traidcraft Exchange conference towards end of 2008

Achieved – impact assessments carried out and learning fed into planning process.

Develop at least one new/major service area in each region

3 in total

Achieved - projects carried out in each region.

Progress and activities

Goal

Activity

Review the Business Development Services programme and report on recently completed and current Traidcraft Exchange projects and services to capture learning and identify gaps in current practice

Antonella Mancini, an impact assessment expert was commissioned to facilitate a thematic review of the BDS programme. The aim was to support Traidcraft staff to critically reflect and analyse the achievements, challenges and lessons to date on this theme and to see how the work contributes to the key changes that Traidcraft Exchange is seeking to achieve through its strategic themes and goals. The review has comprised the following key activities:

self assessments by Traidcraft Exchange staff in the UK and in the regional offices (East Africa, India, Bangladesh, Cambodia)

information gained from consultations with stakeholders in Bangladesh

an internal Business Development Services review (1.5 days) held on 11-12th September 2008 during the Traidcraft Exchange Annual Conference

A report summarising the above activities was compiled and circulated to staff in Traidcraft Exchange and Traidcraft Board members. The review highlighted the following successes:

• Building the capacity of local service providers

• Change at level of individual “I have the confidence that I can be a better guide for enterprise development”

• Formation of new groups and networks

• Relationship building with the private sector

• Signs of sustainable service provision in Kerala

Challenges identified during the review were:

• How to achieve impact at scale

• Identifying leverage points

• Ensuring we have appropriate partners/service providers

• How to achieve sustainability

• Ensuring focus

• Monitoring and evaluation

• Sharing experience and learning

The key lessons highlighted by participants were:

• We have strong methodologies but need to develop a coherent, holistic approach across the organisation including market assessments

• Realistic project design

• Sustainable service providers need technical, service delivery and business skills – sufficient attention hasn’t been paid to the business model

• Small businesses will pay for services if they can see the benefits

Three end of project evaluations have been completed this year:

Samruddhi (India)

Sarthee (India)

STSE (Cambodia)

Reference is made to each of these evaluations below.

Develop at least one new/major service area in each region

Traidcraft Exchange has long been committed to the capacity development of local service providers to meet the needs of small enterprises. This has been an exciting year for the BDS programme building on lessons from 2007-08. In this period our projects have:

supported the development of 693 service providers across each of the Traidcraft regions. 19 in East Africa, 644 in South Asia and 30 in South East Asia.

Worked with service providers from the private sector, public sector, NGOs and supply chain actors

Facilitated the development of services in five key areas including traditional services of business counselling, business training and product development; and new services in fair trade training and agricultural services

Actively worked to build sustainable service provision by both building the skills of service providers and by encouraging the demand, and the willingness to pay, for services. This is a challenging area where we beginning to see successes.

East Africa

The Rwanda Producer Training programme (a consultancy for Shared Interest) has built the capacity of 19 business consultants to provide training and business counseling services to Rwandan crafts producers. The consultants have been trained to work with businesses at different stages of development from start up to those exploring export markets.

To date the trainers have worked with 30 producers co-operatives and will work with another 30 in the next twelve months.

South Asia (India and Bangladesh)

In Bangladesh, the Sustainable Livelihoods for Poor Producers (SLIPP) project has built the capacity of local traders and farmers to provide vital technical services for agri-businesses involved in duck rearing, fish rearing and vegetable production in Netrokona and Mymensingh districts.

The project originally intended to train 60 independent business service providers to develop and deliver appropriate services to 1,200 small agri-businesses (duck, fish and vegetables). However, in-depth research in the regions showed that although agri-businesses needed technical services they were either unable or unwilling to pay for services. The project team therefore decided to build service provision into existing trading relationships working with input sellers and farmers. This has proved highly successful in delivering services and in increasing demand for services.

Key results to date:

231 input retailers trained as service providers

Trained retailers have seen sales of beneficial inputs such as nutrients increase by 100% (compared to only 35% for non-trained retailers)

60 producers have been trained as soil testers for the vegetable sector and producers are paying for this service

The EC delegation (which funds this project) has recognized the success of this approach to service development in poor rural communities and invited our local team to give a presentation.

The Fair Trade Plus project aims to increase the impact of fair trade on poverty in India. The project has developed the capacity of 9 trainers to support enterprises to understand fair trade, the rights and responsibilities of different actors in the fair trade supply chain and then operate in accordance with these requirements. The project has started this work with 50 crafts producers but will extend this to a further 50 producers over the life of the project.

The Sarthee project has developed the capacity of 13 business counsellors/trainers (based in 10 separate non-governmental organisations) to assist pro-poor micro and small enterprises to improve their business performance.

The external evaluation of the Sarthee project concluded that,

“SARTHEE project has made positive difference in instituting a number of changes in the business operations of Business Development Services providers and through them for Medium Sized Enterprises (MSE’s). Instilling a businesslike approach in the staff members and enabling them inculcate the same among thousands of MSEs is a significant move. There has been a noted change in the management systems including financial controls, application of business counselling skills have contributed to instilling good entrepreneurial practices, improvement in the quality; and strengthening of value chain.”

The Samruddhi project has developed the capacity of 15 master trainers working with the Keralan government’s Kudumbashree project to train 316 community based micro enterprise consultants.

The external evaluation of the Samruddhi project, which was completed during 2008 concluded that,

“Samruddhi has contributed, substantially, to strengthening the enterprise support mechanisms... The project has achieved most of the results that it had planned to. The team of Master Trainers developed by the project were able to conduct training programmes, for creating a pool of Counsellor Micro Enterprise Consultants in all the districts of Kerala, as part of the project... After completion of the training, both the Master Trainers and Micro Enterprise Consultants took to identifying enterprises for providing counselling support. The number of units provided with counselling support has exceeded the target set for the project.”

South East Asia (Cambodia and Vietnam)

The Sustainable Trade for Social Enterprises (STSE) project has built the capacity of 17 local private sector consultants in the areas of business counselling and product development and the Market Access Programme in Vietnam has worked with 13 business counsellors.

The external evaluation of the STSE project concluded that the project had created a pool of local consultants with many of the skills needed to assist handicraft social enterprises. Assessment by the Social Enterprises of the input provided to them shows a high level of satisfaction. The overwhelming majority felt the consultancies were relevant and useful and had helped them. Several had developed new market outlets, others instituted better stock control and improved their accounting procedures One Social Enterprise interviewed by the evaluator was unhappy with the consultancy support, claiming the consultant’s level of expertise was inadequate to fulfil their needs indicating the consultant may have been mismatched.

In May 2009 SNV (a Dutch development organization working in Cambodia) contacted three of local consultants to provide in-depth consulting to handicraft producers in Kratie province. If successful, SNV have indicated that they would be interested in funding further work.

Stakeholder views

Set out below is feedback from the STSE project and two participants of a training course in Rwanda.

STSE Project

KNN – Chedra Heng

We became a member of AAC in 2005, because we wanted help in productions and marketing.

Through the Project, we got training in a range of areas including: design, costing, marketing and capacity building for export. I went to some of the training given and some of my staff went to others.

On the whole, the training was good. I would say around 60% was useful to our business, but some was too general. The trainers were good and experienced.

I found the Export training particularly useful. It covered understanding export procedures, how to contact buyers, and the importance of quality control. It helped us grow our export sales and enabled our business to grow quickly.

We also got a local business consultant from the Project who came 3 or 4 times. I felt the person was too inexperienced, lacked analytical skills, and worked at a level that was too low for our business.

I think it would be good if LBC skills were upgraded, so they can meet the needs for bigger SEs like ours. This could be done through training, internships and mentoring.

Watthan

We are founding members of AAC. We had a Local Business Consultant through the Project. They helped us set up an accounting and bookeeping system. The consultant was good: the only problem was agreeing a schedule with her. She always seemed busy.

The new system saves us time on doing the books. It provides reports and allows us to analyse costs, income and profit/loss.

We attended training on Understanding the Market and how to Design to Meet Market Needs. We also had a PDC work with us from December 2008-January 2009. She helped us create 5 new products and do one re-design. These were exhibited at the (January 2009) Craft Fair in Siem Reap. The consultant had good skills. However, it would have been good if she had had more knowledge about the international market.

Our sales have doubled from $20k in 2006 to $40k in 2008. We sell 40% through our shop,40% export and 20% wholesale.

Homeland Handicrafts

We had a Product Design Consultant work with me and three staff from December 2008-February 2009. We worked together on new product design (especially for the export market), how to access dyes that meet EU market requirements, and designing a new product line: toys for children made from silk.

As a result, we have 10 new bag designs, have improved the colour combinations of our scarves, and have 5 toy designs.

Our sales, which were $100/month in 2006 are now $500/month, and increased to $1,000 (in January 2009) when we exhibited at the Craft Fair in Siem Reap.

Rajana Association

I and some of my staff attended training organised by the Project on Product Design, Costing and Marketing. We learnt about the importance of colour combinations in product designs and also the importance of developing original designs that were nevertheless distinctively Cambodian . We also were introduced to a range of tools to promote Rajana and our products.

Training in Rwanda

Hubert Cyiteretse, a business trainer in Rwanda

I gained two times from the training : Your methodology is the highest, It avoids people to get biased. I hope I will be one day able to use some of them. On the other hand I learned many things from the training. All of them will help me to improve my service. Note that I am a consultant in business plan issues, accounting, auditing, etc. I conduct sometimes trainings also. We promise that we will keep in touch with the lessons we learnt and we will strive to achieve the highest results as for the works we have to do.

Alice Umurisa, runs a business in Rwanda – received training given by a business trainer

I would like to thank you with your colleagues for the training you organised for us. It was very interesting and learned a lot of things which surely will help us to develop our daily work and lives in our homes and our associations. Thank for your kindness and sacrifice. God bless you.

Goals for 2010

Target

Target figure

Develop an integrated programme with targets

N/A

Successfully implement existing projects

6 projects

Develop new project proposals

5 proposals

Develop new/major service areas in TX regions

6 new areas

Develop and build the capacity of networks of service providers

6 networks

Develop new services/tools which support the development of sustainable service provision

4 new services/tools

Learning from each service market is disseminated within TX and informs the development of future projects

4 quarterly BDS updates produced and circulated

Social accounts 2009 - audited by Just Assurance