Institutional approaches to the delivery of business development: A review of recent literature

Part of a body of research dedicated to enhancing understanding of the non-farm rural economy in India and Central and Eastern European countries. This paper specifically looks at the international experience of institutional approaches to the delivery of Business Development Services.

Main findings

• An important challenge for business development services providers, especially for serving small, poor enterprises at local levels, is to develop low-cost products suited to their clientele’ needs.
• Given the diversity of small enterprise clients and local contexts, no single type of delivery model fits all.
• In order to improve impact of business development services on clientele and attain self-sufficiency, internal institutional systems need to be in place.
• Having a highly motivated and professional staff is crucial for the effectiveness of Business Development Services provision.

Intervention description

Business development services in this context include training and capacity building, technical assistance in productive investment, consultancy and marketing training, business information sharing, network development and improved links with strategic partners.

Evidence methodology

• Analyses three institutional Business Development Services-delivery models, i.e.: the government-driven approach; forging partnerships between donors and national institutions; and the promotion of independent Business Development Services providers.
• There was no clear framework for judging success. Cases varied from 'improved trust' to 'higher exports' to 'cost recovery' to 'poverty reduction'. These were often not quantified.

Useful for:

The report is useful for anyone interested in learning more about business development services, including donors, NGOs, incubators, consultancies, researchers and policy makers. It is particularly interesting for anyone seeking specific advice about the implementation strategies required to secure the best chance of success in business development services projects.