Project Design

Market Assessment of Business Development Services, South Africa, GTZ, 2004

    Description
    The German South African programme on Business Development Services and Local Economic Development (BDS/LED) is helping to develop functioning markets for BDS that benefit local SMMEs by assisting them to realise their growth potential and create employment. Like many other agencies, GTZ believes that developing markets for business services is the best way to enable a large number of small enterprises to obtain the business services they need and want. Vibrant private sector BDS markets also stimulate the growth and competitiveness of local economies.

    Methods for info gathering
    SE interviews, focus group discussions, quantitative, qualitative

    Summary of results
    BDS interventions are intended to improve the performance of SMMEs. Reliance on the private sector to provide services to more enterprises demands a better understanding of how BDS providers can become financially self-sustainable and profitable. It also necessitates a better understanding of the actual demand for BDS in specific markets.

    GTZ and South African SMME support institutions worked together on a pilot program to identify interventions that could promote development of markets and demonstrate the validity of this concept in South Africa.

    In a follow-up to the market assessment, GTZ and its partners analyzed the data and created service profiles with information on the current and expected status of each service, market characteristics, and possible options for intervention.

    Many of the gaps between supply and demand of the services the study focused on can be narrowed by stimulating interaction between small companies and service providers. Ultimately it would be ideal if service providers could learn to be more aware of the demands and specific requirements of consumers and if these customer could understand better their options and the characteristics of various service offerings.

     
    Associated Activities and Documents
    Programme Design
    »German-South African BDS and LED Programme, 2004