Making BDS Market Work For MSEs

24/04/2020 Amit Kumar, GIZ Private Sector Development

FICCI MSME Workshop 2013

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GIZ in Brief Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH •

100% federally owned, public-benefit enterprise

, supporting the

German Government

in achieving its objectives in the field of international cooperation for sustainable development • promoting international cooperation for

sustainable development

and

international education work

.

• > In

130 countries

worldwide; >

17,000

staff members German Federal Ministry for Economic Cooperation and Development (BMZ) 

Promoting MSME Growth

= a priority area of GIZ Private Sector Development 24/04/2020

FICCI MSME Workshop 2013

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GIZ – Outline of our Work Priority Areas in India of German Development Cooperation

Energy Contributing to improvement of both quality and quantity of energy supply in a resource efficient manner Environment Conservation and sustainable use of natural resources as well as sustainable urban & industrial development Sustainable Economic Development Private Sector Dev.

Financial System Social & Econ. Policy

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Business Development Services (BDS)

Wide range of services

used by entrepreneurs to help them operate efficiently and grow their businesses with the broader purpose of contributing to economic growth, employment generation, and poverty alleviation

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Business Development Services (BDS)….

Product Development Inputs & Infrastructure Technical Assistance Training Technology Market Access

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BDS Market Functioning

Supply Transactions

 Limited MSME information  Inappropriate/ Standard Solutions  High cost of Client acquisitions  Non Availability at Cluster 24/04/2020

FICCI MSME Workshop 2013 Demand

 Limited understanding of service needs and benefits  Lacks ability / willingness to pay  Don’t know where to get from Page 6

Making BDS market work for MSEs  Not a subsidized models of service provisioning  Focus on building vibrant, commercial and sustainable service markets

Strengthening the ability of a range of profitable BDS providers to offer demand-driven, affordable, and strategic services to a large number of MSEs”

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Role of Market Facilitators: Targeted Intervention to address specific bottleneck after understanding and assessing the market     Connect BDS providers and MSEs, Designing affordable and customized service products Building MSEs’ awareness of services and their benefits Modeling new payment and delivery mechanisms 24/04/2020

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Business Model of Service Delivery and MSME

(FICCI – SIDBI-GIZ –IFC)

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Objective

To identify, analyze, describe and disseminate business models of service delivery to MSME; to stimulate thinking and enhance learning among different stakeholders.

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Approach and Methodology

Open Handpicked

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Select Cases

CAPSULE MSME Soln. Cent.

Franchise India Indiamart Sanblue redBus Google IamSME RBC

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Learning: Common Key Operating Principles  MSME is a price and value sensitive market , which requires building trust and transparency  Need to create collaborative ecosystem for last mile connectivity  Focus on offering need based end to end solutions , rather than offering standardized solutions  Leverage the innovative use of technology for offering cost effective solutions 24/04/2020

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THANK YOU

Contact [email protected]

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