This document outlines a strategy for promoting demand-led business development services (BDS4ME) to support microenterprises. It describes BDS4ME as non-financial and non-transactional facilitation services to help start and strengthen microenterprises. The key aspects of the strategy include selecting field partners, identifying target villages and households, understanding microenterprises' needs, enlisting demand for BDS, facilitating the supply of BDS through village-based providers, and using monthly BDS cycles to continuously deliver and monitor services. The goal is to provide demand-driven BDS to 400 microenterprises across 20 villages in one block through 40 village-based BDS providers.

1. Promoting
Demand led BDS4ME
-An Inclusive Livelihoods Promotion Strategy
Jitesh Panda & Rajib Mohanty
Vrutti Livelihoods Resource Centre
18th June 2010

2. What is BDS4ME?
BDS4ME refers to
Non Financial and Non Transactional Services
for
Promotion, Sustenance and Growth
of
a micro Enterprise

3. How is BDS different from Business
Services?
Business Services relate to
Direct Transactional Services for day to day functioning
of
micro Enterprise
while
BDS4ME
relate to facilitation services
for
Starting and/or Strengthening
micro Enterprise

4. What are broad typology of BDS4ME
Services?
BDS4ME relates to
Information or Linkage Services
Information is initial stage of Linkage Services

5. What is Demand led BDS4ME?
Demand led BDS4ME
refers to
provision of BDS Services
based on
Demand of micro Enterprise
BDS4ME could be
Supply led or Market (strengthening both Demand and Supply) led

6. What are key features of Demand led
BDS4ME?
BDS4ME
Led by Demand of micro Enterprises
provided through
Village based Individual BDS Providers
and
monitored through Monthly BDS Cycles

7. What are key steps in promoting
Demand led BDS4ME?
1. Selection of BDS Manager
2. Identification of Field based NGOs
3. Interaction with Chief Functionary of NGOs
4. Identification of Block (s)
5. Selection of BDS Executive (s)
6. Identification of Clusters/Gram Panchayat
7. Selection of BDS Field Facilitator (s)
8. Identification of Village (s) for Interventions

8. What are key steps in promoting
Demand led BDS4ME?
9. Selection of Village based Individual BDS
Providers
10. Identification of Poorest Households
11. Identifying and understanding micro Enterprise
to be supported with BDS
12. Enlisting Demand for BDS for 1st Cycle
13. Facilitating Supply of BDS for 1st Cycle
14. Assessing impact of BDS on micro Enterprise
15. Enlisting Demand for BDS for 2nd Cycle -
Continues

9. What are attributes of a
BDS Manager?
Post Graduate
Local Language Skill
At least 1 year experience of working in a
Field based NGO
At least 5 years experience relating to
promotion of Livelihoods
Proficiency in Computer mainly MS Office

10. What are key features of a
Field based NGO?
Experience in promotion of micro Enterprises
and/or Self Help Groups (SHGs)
Established Linkages with micro Enterprise
related Stakeholders
Having Office in the Block Headquarter (s)
Having at least one On-Going Grant
supported Livelihood Promotion Project
Experience of providing services on fee basis
and/or being involved in marketing of
produces

11. What to interact with
Chief Functionary of NGO?
On experience of working with community in
different Block (s)
On experience in promoting micro Enterprise
in different areas
Developing common understanding on
BDS4ME
Briefing strengths and limitation of Demand
led BDS4ME as a model
Willingness to pursue Demand led BDS4ME
on long term basis

12. What aspects to be looked in while
identifying a Block?
NGO having at least 2 years of experience of
working in the Block
NGO having Field Office in the Block
Headquarter
NGO having established rapport with
community
Prevalence of Poverty compared to other
blocks in the district
Stakeholders supportive to the idea of
promoting Demand led BDS4ME

13. What are key attributes of a
BDS Executive?
Post Graduate
Local Language Skills
Communication Skills
One year experience in promotion of
Livelihoods
Understanding of Markets/Business in the
proposed Block

14. What aspects to be considered in
identifying Cluster?
Presence of Traditional Hat
Presence of small regular Market
Physical proximity of the villages to a Nodal
Point (on same route)
Preferably covering one or two Gram
Panchayats
Cluster having one/two Aggregation point for
key commodities in the Cluster

15. What are attributes of a
BDS Field Facilitator?
Matriculate
Local Language Skills
Communication Skills
Willingness to Travel (Having own mobility)
At least 1 year experience in Development
and/or Business Sector

16. What aspects to be covered in
identification of Villages?
Linkage with key informants
Rapport with community
Understanding of occupation profile in the
village
Understanding of poverty profile in the village
Experience of NGO working in the Village

17. What are attributes of a Village based
Individual BDS Provider?
Under matriculate
Residing in the Village
High Local Communication Skill
Willingness to extensively travel outside the
village
Aware about key business players in the
cluster/block

18. What aspects to look for in identifying
the Poorest HHs?
Opinion of BDS Provider
Discussion with Key Informants in the village
Physical condition of House
Observation at HH level
Confidence of HH to access services from
BDS Provider

19. What to look for in identifying mE?
HH considering the Micro Enterprise as one
amongst the 3 major contributor to income at
HH level
Profile of micro Entrepreneur (Male BDS
Provider may focus on Male Entrepreneur
and Female with Women Entrepreneur)
History of micro Enterprise
Understanding unique features of the mE
Current Market and Profile of Buyers

20. What to discuss to support HH to be
able express Demand for BDS?
Understanding day to day problems faced in
managing the Enterprise
Sharing instances when they thought their
Enterprise did not perform well; and reason
there of
Key opportunities to strengthen their
Enterprise
Potential threat to their Enterprise
Better performing Enterprises in the village
and reason for better performance

21. What would enable supply of BDS?
Clarity in understanding of profile of
Entrepreneur
Clarity in understanding of profile of mE
Clarity in understanding of Demand for BDS
Experience of supplying/facilitating BDS
Linkages with other BDS Providers, Business
Service Providers and Business Players

22. What are Unique features of BDS
Cycle approach?
A cyclical process – Assessing Profile of mE,
Enlisting Demand, Ensuring Supply,
Assessment of mE, Enlisting Demand…..
Facilitate continuous delivery of BDS
Facilitate for BDS4ME to remain Demand led
A tool for Monitoring
Facilitate continuous Capacity Building of
BDS Providers

23. How BDS4ME is financed?
Fee for Services from HH/mE
Livelihood Program Support
Payment from Buyers and/or Input Suppliers

24. What is coverage of Demand led
BDS4ME Program?
One Block (Associated with one NGO)
Four Clusters (Four Clusters per Block)
Twenty Villages (Five Villages per Cluster)
Forty BDS Providers (2 – One Male and One
Female in a Village)
400 Households (10 HHs per BDS Provider)
400 micro Enterprises (1 mE per HH)

25. Thank you