Facilitation of BDS networks What is a BDS

Facilitation of BDS networks

What is a BDS Categories of BDS Strategic BDS Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks What is a BDS? A BDS is a non-financial service meant to assist entrepreneurs to start, better manage and grow their businesses

What is a BDS Categories of BDS Strategic BDS Two categories of BDS 1. Operational BDS 2. Strategic BDS Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks

Strategic BDS What is a BDS Categories of BDS Strategic BDS Networks Supply chain of BDS 1. Management training 2. Vocational training 3. Business consultancy and advisory services 4. Marketing assistance 5. Technology transfer 6. Business information Overlap of roles Purpose of BDS network How to facilitate BDS Networks

What is a BDS network Categories of BDS Strategic BDS Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks A BDS network is system of informal and/or formalized linkages between institutions involved in the supply chain for BDS

The supply chain for BDS What is a BDS Categories of BDS Strategic BDS BDS spons ors fund Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks BDS facilit Gover provide ators nment technical coordinates support to BDS provi ders subsidize pay physically deliver services to link BDS broker s …and sets the political and legal framework CLIE NTS

Players in BDS market What is a BDS Categories of BDS 1. Government Strategic BDS 2. BDS facilitators 3. BDS providers 4. BDS brokers 5. BDS sponsors 6. BDS clients BDS Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks

What is a BDS Categories of BDS Strategic BDS The overlap of roles in the supply chain for BDS in Sri Lanka BDS sponsor s fund BDS subsidize Networks subsidize Supply chain of BDS facilitat ors Govern -ment coordinates Overlap of roles Purpose of BDS network How to facilitate BDS Networks provide technical support to BDS provide rs pay physically deliver services to link BDS brokers CNT S physi cally delive r servic es to

Emerging best practices in the delivery of BDS Traditional approach New approach Focus on products Focus on customer needs and wants Focus on sponsors Towards full recovery of training costs from the client Delivery of services for free or at a nominal charge Self-perception as a welfare/ development institution Reliance on public sector/non-profit institutions Monopolistic or oligopolistic markets Self-perception as a service provider Reliance on private and public sector institutions, operating with or without profit interest Competition among service providers 9

Opportunities and Threats of the new BDS paradigm Threats Opportunities Fewer subsidies Increased competition Pressure to innovate Pressure to professionalize services } Income no longer subject to donor-conditionality Entrepreneurial management of BDS organizations 10

What is a BDS Categories of BDS The purpose of a BDS network § To enable MFI to add value to it’s MF products to better position their offer § To enable clients to make an educated choice and to receive more impact-oriented Strategic BDS Networks Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks

What is a BDS Categories of BDS Strategic BDS How to facilitate BDS networks 1. Networks Supply chain of BDS Overlap of roles 2. 3. Purpose of BDS network How to facilitate BDS Networks 4. Carry out market research about the local supply chain for BDS Classify the institutions intervening in the market exchange Group institutions with complementary mandate Initiate and moderate network linkages between these institutions.

A sample BDS networks Master trainer: Network Moderator What is a BDS Categories of BDS SIYB training organizati on B (provider) Strategic BDS Pay back Networks Donor (Sponsor) Supply chain of BDS Overlap of roles Purpose of BDS network How to facilitate BDS Networks Subsidize, where needed provides follow-up after training Subsidize, where needed SIYB training organizati on A (provider) pay SME’s (Client) Other BDS providers Provide more BDS on demand train link District Chamber (broker) …and evaluate customer satisfaction = communication grid Pay back with interest Give loans after training, provided feasible business plan Credit provider