Ethiopian Business Development Services (BDS) Network
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BDS - Newsletter

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Special Edition 2 -  April 2006

Two Special Editions on innovative Methods in BDS Market Development
This is the last of two special editions in April 2006 dealing with innovative methods for BDS market development. No. 1 "Creation of non-financial services funds in collaboration with banks" is still available on www.bds-ethiopia.net/news.htm

BDS Innovations

Link technical Trainers and Training Centres to Micro and Small Enterprises for on-the-spot Advise with immediate Impact

Offer-oriented training packages and class-room trainings dominate demand-driven business consultancy approaches. Standardized class-room trainings can have a good impact to acquire basic technical and management skills but in general they do not respond on concrete problems of individual enterprises. Demand-driven approaches discuss constraints on individual enterprise level and only AFTER that develop specific trainings or give specific advice. The following method based on business consultancy on the ground is near to the business owners' everyday problems and can provide immediate assistance.

Implementation: The one-month pilot proposal has been developed in collaboration with WEYDA consult Kumasi, Ghana. The idea is to identify three technical trainers in three different sub-sectors like textile, wood and metal works. Every trainers visits six enterprises of his sector one day per week (3 trainers x 6 enterprises x 4 weeks = 72 enterprises in a one-month pilot) providing on-the-spot advice. We know that an experienced trainer will immediately identify existing technical constraints in production, product development, quality, material supply and workshop organization when visiting an enterprise of his sector. The technical expertise can be completed by a specific additional input of the consultant on management level, e.g. introduction of a simple cashbook.

Documentation: The consultant will prepare the visits and document the problems identified and technical advice given. He will write a report on the pilot experience that will be the main tool for further marketing of this approach.

Marketing: Marketing can be organized in close collaboration with the respective sector business organization and commercial training centres. Once the first experience made, this approach can be offered to organizations involved in MSME development. Cost sharing models can be developed, such as participation fees paid by the business organization or/and by the business owners themselves who want subscribe for the visits.

Conclusion: This approach is action-oriented and will have immediate impact on enterprises level because responding on specific everyday business constraints. Finally, this intervention once implemented can be developed on cost sharing basis.

Company Re-Engineering  Module (CREM)
for Medium and Large Enterprises

The "Company Re-Engineering Module (CREM)" is also a demand-driven approach but focussing on medium and large enterprises with a medium-term intervention of six months. A detailed diagnostic of 10-15 enterprises on different management levels will be the basis for specific business consultancy and company re-engineering.

Approach: The “Company Re-Engineering Module (CREM)” has been developed with EDC consulting, Accra, Ghana. In difference to the standardized offer-oriented training packages of most of the Ghanaian consultants, the CREM develops concrete steps for demand-oriented needs assessment: talks/interviews are held on all business management levels: staff management division, supply and sales divisions, accounting division, production and product development and top management level. The main constraints are identified on each level before designing a six-month action plan for business consultancy, on-the-spot advice, business to business linkages, experience exchange and business trainings. The detailed program depends on the main problems identified. Individual advice and business consultancy will respond on specific individual business constraints. Problems that are common to the businesses involved can be treated by group trainings and business-to business experience exchange and networking.

Six-month cycle implementation: The intervention is intended to be implemented by a consultant with three business advisors and 15 enterprises in a six-month period. After a one month period of problem analysis and needs assessment in each of the enterprises involved, a detailed action plan will be elaborated for individual business consultancy and group trainings as well as networking and experience exchange between business owners. Additional service providers like training centres, accountants, export and marketing specialists must be identified in time and hinzuziehen can be called in if necessary.

Target clients: Target clients are medium enterprises and the upper small enterprises with the capacity and willingness to pay for regular medium-term business development services as well as small enterprises being members of business associations like women entrepreneurs’ associations.

Marketing: For the implementation of this approach it is recommended to collaborate with partner organizations willing and able to finance first pilot experiences. Once, this first intervention documented and spread, advertizing with the results achieved may develop next interventions on a cost sharing basis in collaboration with business associations.

Conclusion: We call this demand-oriented and needs assessment based approach innovative because offer-oriented standardized packages dominate not only the Ghanaian consultancy community but also most of the MSE development projects in Ghana and in other countries.

Previous BDS Newsletters please visit www.bds-ethiopia.net/news.htm.

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