Making BDS Market Work For MSEs
Amit Kumar,
GIZ Private Sector Development
13/04/2015
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
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FICCI MSME Workshop 2013
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GIZ – Outline of our Work
Priority Areas in India of German Development Cooperation
Energy
Environment
Contributing to improvement of both
quality and quantity of energy supply in a
resource efficient manner
Conservation and sustainable use of
natural resources as well as sustainable
urban & industrial development
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FICCI MSME Workshop 2013
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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FICCI MSME Workshop 2013
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Business Development Services (BDS)….
Product
Development
Training
Inputs &
Infrastructure
Technology
Technical Assistance
Market Access
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BDS Market Functioning
Supply
Transactions
Limited
understanding
of service
needs and
benefits
Lacks ability /
willingness to
pay
Don’t know
where to get
from
Limited MSME
information
Inappropriate/
Standard
Solutions
High cost of
Client acquisitions
Non Availability
at Cluster
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Demand
FICCI MSME Workshop 2013
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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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FICCI MSME Workshop 2013
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Role of Market Facilitators:
Targeted Intervention to address
specific bottleneck after understanding
and assessing the market
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
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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
FICCI MSME Workshop 2013
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Business Model of Service Delivery and MSME
(FICCI – SIDBI-GIZ –IFC)
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FICCI MSME Workshop 2013
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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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FICCI MSME Workshop 2013
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Approach and Methodology
Open
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Handpicked
FICCI MSME Workshop 2013
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Select Cases
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CAPSULE
Franchise
India
Google
MSME
Soln. Cent.
Indiamart
IamSME
Sanblue
redBus
RBC
FICCI MSME Workshop 2013
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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
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FICCI MSME Workshop 2013
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THANK YOU
Contact
amit.kumar@giz.de
13/04/2015
FICCI MSME Workshop 2013
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