CHAPTER ONE: INTRODUCTION 1.1 Background Large scale industrialization schemes have been practiced in many parts of African and the developing countries. Under this type of industrialization strategies, most of the experiences, know how, equipments and inputs were imported form abroad similarly, most of the profits also left the countries in different forms. The strategy left hardly a sustainable effect on indigenous micro and small enterprises/informal organizations (ECA, 1998). In recent years the development of micro and small enterprises/informal sectors is getting more and more attention in filling in the development process. MSEs in many developing countries result in higher employment per unit of scarce capital that exceeds their large scale counterparts. Similarly, output per unit of capital is also found out to exceed that which is generated by the larger enterprises (Liedholm and mead 1999). The extent to which these advantages of MSEs development are achieved depends on the nature and degree of support they receive. These enterprises have lower prospects to grow and play an important role in urban areas in general and small towns in particular unless they are supported effectively. If these firms are supported with effective financial and 1
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CHAPTER ONE: INTRODUCTION
1.1 Background
Large scale industrialization schemes have been practiced in many parts of African and
the developing countries. Under this type of industrialization strategies, most of the
experiences, know how, equipments and inputs were imported form abroad similarly,
most of the profits also left the countries in different forms. The strategy left hardly a
sustainable effect on indigenous micro and small enterprises/informal organizations
(ECA, 1998).
In recent years the development of micro and small enterprises/informal sectors is getting
more and more attention in filling in the development process. MSEs in many developing
countries result in higher employment per unit of scarce capital that exceeds their large
scale counterparts. Similarly, output per unit of capital is also found out to exceed that
which is generated by the larger enterprises (Liedholm and mead 1999).
The extent to which these advantages of MSEs development are achieved depends on the
nature and degree of support they receive. These enterprises have lower prospects to
grow and play an important role in urban areas in general and small towns in particular
unless they are supported effectively. If these firms are supported with effective financial
and non financial services currently known as business development services (BDS),they
could play a significant role in addressing unemployment problem and poverty and
serving as springboards for large scale industrial development.
The government of Ethiopia designed MSEs development strategy in 1997, and set up the
Federal micro and small enterprise development agency (FEMSEDA). The regional
states also developed MSE promotion strategies based on their context, and in tandem
with the federal MSEs development strategy. The government of Ethiopia has also
launched the implementation of MSEs development by promoting all rounded supports.
According to Wolday and Gebrehiwot (2004) BDS provision for MSE is a new concept
and approach in Ethiopia. Therefore, the authors clearly denote that BDS services are
needed for viable MSEs development. However, BDS in Ethiopia is very limited, and
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often services are less effective as they are not tailored to the needs of individual business
as (Zewede and Associates, 2002).According to Liedholm (1999) there are three
categories of constraints ; these include lack of capital , problem of market and access to
raw materials and intermediate inputs. Research findings of Wolday (2004) which
focused on MSEs in major urban centers of Ethiopia revealed that access to markets and
finance are the most dominant constraints of this sector. The report of Africa
Development Bank (AFDB) and Organization for Economic Cooperation and
Development (OECD) (2005) denoted entrepreneur and know how is also another
constraints in Ethiopia. This paper aims to review the nature and effectiveness
sustainability modalities challenges and problems of the BDS initiatives in Ethiopia in
promoting MSE development by under taking a case study in Mekelle city.
1.2 Statement of the problem
Ethiopia designed a Micro and small enterprises development program was designed in
2006 to be implemented across all the Ethiopian cities and towns. According to the
Ministry of Works and Urban Development ( MWUD:2006), there were about 1, 273,
408 unemployed people in urban areas and this figure is believed to reach 1, 501, 974
people by 2002 Eth.cal. The Ethiopian government to address this unemployment
problem through promoting the development micro and small enterprise. The micro and
small enterprise development program is therefore designed to expand employment
opportunities in cities and towns by providing support to micro and small enterprises.
Accordingly a full support package that contains organization, land supply, credit service
market, technology, training and other supports has been prepared for micro and small
enterprises operating in selected fields. This is provided in the form of a BDS with the
help of extension agents. In addition, a minimum support package is prepared to micro
and small enterprises engaged outside the selected priority areas (WUD: 2006).
In addition to the government various organizations and associations and engaged in
offering BDS in Ethiopia. These include Women Enterprise Promotion center (WEPC),
FeMSEDA, GTZ, International labor Organization (ILO), Enterprise Ethiopia, UNDO.
Although the BDS is still at low level in Ethiopia, the service has been growing on the
past few years. The range of services provided are also widen substantially from time to
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time. The Trade and Industry, Office of Mekelle city has scaled up the interventions in
accessing business development services (BDS) for micro and small Enterprises since
2003.
The governments, donors and intermediary organizations involved in BDS delivery have
become increasingly concerned about the impact, effectiveness, out reach, efficiency and
sustainability of the BDS services provision. In light of the scaling up of the BDS and
MSE development program in Mekelle and in across all cities in the country, it is
essential to provide an assessment of the nature and effective ness of the BDS initiatives
experimented in Mekelle. Such an assessment could help to improve the design and
modalities with the effectiveness of BDS delivery .
But the number of researches that analyzed the issues of nature and effectiveness of BDS
programs is few. Little is known about the initiatives and their outreach in Ethiopia in
general and in Mekelle city in particular. Therefore, BDS has not been entirely analyzed
so far.
Thus this paper attempts to contribute towards the filling the knowledge gab about the
BDS outreach, nature and modality of delivery; and effectiveness in terms of
employment expansion ,asset creation and sales increase of BDS using enterprises.
services.
1.3 Objectives of the Research
1.3.1 General objective
The general objective of this research is to assess the approaches, effectiveness,
outreach and sustainability of BDS provision by the government of Mekelle city.
1.3.2 Specific objectives
1. To assess the status of BDS program with regard to outreach to MSE operators.
2. To evaluate the modalities of BDS delivery.
3. To review the effectiveness of BDS in terms of improving the performance of MSEs.
4 .To review the sustainability of BDS services.
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5. To identify the roles of MSEs operators, providers and facilitators in delivering the
BDS effectively.
1.4 The Research Questions
This research attempts to answer the following questions:
1. What is the level of BDS preprogram and outreach with the regard to MSE operators?
2 .What type of modalities has Mekelle city been pursuing to deliver BDS and what are
the experiences with these modalities?
3. What are the opportunities and challenges of BDS?
4. What are the roles of MSEs operators, providers and facilitators in promoting the BDS
market?
5. What are the main problems encountered in delivering BDS?
What has been the effectiveness of BDS on the performance of MSEs
7. What are the possible strategies available to improve the effectiveness of BDS?
1.5 Research Hypothesis
Null Hypothesis: Providing BDS (short term trainings, and technical assistance, access
to market, facilitation for inputs, technology and product development, infrastructure and
working premises, information and consultancy and financial facilitation) to MSEs have
not significant contribution in generating employment opportunities, asset creation and
sales increases This hypothesis would be tested by comparing to BDS users with non
users as well as before and after the BDS services provision within the enterprises
themselves.
Alternative Hypothesis: Providing BDS (short term trainings, and technical assistance,
access to market, facilitation for inputs, technology and product development,
infrastructure and working premises, information and consultancy and financial
facilitation) to MSEs have significant contribution in generating employment
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opportunities, asset creation and sales increases as compare to BDS users with non users,
as well as before and after the BDS services provision with in the enterprises them selves
1.6 Significance of the Research
The research will help policy makers; BDS facilitators and providers as well s donors to
develop a sustainable program, and to clearly identify their roles on effective BDS market
in the future. The intention is that policy makers and implementers of MSE support
programs may use the research for designing more effective interventions on BDS.
Mekelle city is also expectedly to use the findings of this research to improve its BDS
delivery to its clients when they develop the strategic framework.
Moreover, the results of this research can be used as an input in understanding the status,
challenges and prospects of the new paradigm BDS in Mekelle city. On the other hand,
the findings of the research may contribute to the enrichment and development of MSE
strategies. The research may also solve as additional references for further research and
investigation on business development services for micro and small enterprises in the
major urban centers.
1.7 Scope of the Research
Though there are informal business development service providers, they were not the
focus of this dissertation. This research gave due attention to the BDS provided by the
government of Mekelle city. Trade, Industry and cooperative promotion office of Mekell
city has provided various supports for the MSEs. However this research is restricted only
to the special and business development services users. The research focused on
examining the practices, approaches, performance sustainability of marketing of BDS
delivered by the city administration of Mekelle.
1.8 Structure of the paper
There are five chapters in this research that include introduction, literature review, design
and methodologies, the discussion and findings of BDS and conclusion and
recommendation in that order. Even though the major chapters contain subtitles, they are
generally implicitly represented within the major titles of the chapters.
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1.9 Limitations of the Research
Adequate data on micro and small enterprises in general and business development
services in particular was difficult to get in Mekelle city. Besides, there were
inconveniences to estimate and specify the numbers of operators who have been
supported and getting BDS by the government.
Since the current BDS delivery is supply driven, this research could not conduct an depth
BDS market and demand analysis. The paper rather evaluated the effectiveness and
outreach of BDS using indicators of employment asset creation and increased sales.The
thesis could not separate the impact of BDS from other economic growth effects on the
performance of MSEs. The overall manuals, periodic reports of the Mekelle Trade,
Industry and cooperative promotion office did not include any BDS services costs. The
costs and benefits of the BDS service was not explicitly recorded and estimated that
affected negatively the attempt to measure the efficiency of BDS and the MSE
development.
Similarly, some respondents of this research were not interested to spend more time and
to tell about sales and asset creation because all data related with business information
were concealed for fear of use of such data for other purposes (e.g to avoid government
taxes, charges and fee). Therefore the business enterprises are likely to have
underestimated their sales and asset creation. This undermined the objective of the paper
to examine the impact of the BDS on the performance of the enterprises.
1.10 Description of the Study Area
Tigray Regional National state (TNRS) is located in the Northern part of Ethiopia.
According to the central statistical authority, the total land area of the region is about 50,
780 km square with a total population of 4.23 million. The urban population is 18.5% of
the Regional population (Urban Instituted :2006). The urban population is fast growing at
4.6%.
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Mekelle is the capital city of Tigray region. It is found at a distant of 783 km to the
Northern direction of Addis Ababa. The population of Mekelle is about 177090 and
annually increasing by 4.5% which is driven natural fertility and migration (CSA:2006).
The city has a total area of 74km square in 2004.
The city of Mekelle is found within the circumscribed boundary of Enderta Woreda
which is found in the southern zone of Tigray Region, Ethiopia. Geographically the city
is enclosed within the limit of 13o 18’ 3” _ 13 o 39’ 52” North latitude and 39 o 22’30” _
390 39’ 33” East longitudes. The altitude of Mekelle varies from 2150 to2270 meters
above sea level. This elevation makes the city under the category of Weinadega of agro-
climate zone.
Mekelle experiences mild climate condition with annual average maximum temperature
of 24.1 o c and annual average minimum 11.11 o c. There is one short rainy season, which
comprise months of June, July and August. This rainy season is characterized by erratic,
unreliable and unevenly distributed through out the year. The city has annual average rain
fall 618.3mm/year.As indicated in proclamation number 65/2002 of the Tigray National
Regional state, Mekelle city shall administer or follow the mayor-council system of
governance. In the new reform the city is divided in to seven one stop shop service
centers.
There is also a high rate of migration which doesn’t match with the socio-economic
growth and infrastructure service requirement of the urban population. This growth rate
is creating negative impacts on the country’s social and economic development at large.
It is there fore imperative to devise and implement strategies and programs that would
enable urban growth to contribute to the country’s social and economic development and
promote good business environment.
.
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CHAPTER TWO: LITERATURE REVIEW
2.1 Theoretical Literature
2.1.1 Definitions of Business Development Services (BDS)
In the late 1990s enterprise development community were searching for a term to replace
non financial services, i.e. any business services that were not micro finance. BDS
emerged and become the standard terminology for what used to be as non-financial
services (Frank: 2004). The Donor Committee introduced the term BDS in 1997 into the
development glossary and initiated a process of substantial analysis and reflection among
the development community (Bear: 2003).
Business development services can be defined as the services that improve the
performance of the enterprise, its access to markets, and its ability to compete in the
market. BDS often includes seven categories of services that enable growth and
development of enterprises. These are training and technical assistance, access to
markets, input supply, technology and product development, infrastructure, policy and
finance resources accessed to address specific constraints to MSE growth and
development (GTZ,ILO,EC: 2001).
GTZ,ILO,andEC (2001) further identify distinction between operational (narrower) and
strategic (broader) BDS. Operational business development services are those needed for
day to day operations, such as information and communications, management of accounts
and tax records and compliance with labor laws and other regulations. Strategic services,
on the other hand, are used by the enterprise to address medium, and long term issues in
order to improve the performance of the enterprises, its access to markets, and ability to
compete. There is still a debate as to whether a narrower (in terms of knowledge, skills
or information services) or a broader interpretation of the term is preferable. Both the
BDS primer 2003 of International Labor organization (ILO) and the small enterprise
education and promotion (SEEP) Network distinguish between seven categories of
Business Development Services, namely; a) market access (e.g. marketing linkages
advertising packaging), b) infrastructure (e.g. storage and ware housing
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telecommunications, couriers), c) policy/Advocacy (e.g. training in policy advocacy), d)
input supply (e.g. linking firms to input suppliers), e) Training and technical assistance
(e.g. management training), f) Technology and product development (e.g design
The highest percent (46.68%) of the total 102 MSEs operator fallen between the age
group of 18 to 29. This is higher compared to (30.62%) of the total Mekelle city MSEs
Census. Thus the BDS users are mainly young MSE Operators.
Table 4.2.3 Age range of the sample BDS user Operators
S.N Age level of the sample Respondents
Number of Respondents %
1 Less than 18 years old 1 0.982 18-29 18 years old 47 46.083 30-40 18 years old 38 37.254 41-60 18 years old 16 15.69
Total 102 100Source: Own Sample Survey: 2008
4.2.2.2 Enterprises by age
The sample MSEs operators have started operation in different time. Business with the
age of only five years (2003-2008) is 77.5%. And only 5.9% MSE businesses were
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established before 1998.Thus most of the BDS users are young forms which they get
important supports. The young are more dynamic and lead to utilize the resources.
Table 4.2.4 Age range of the sample Enterprises
S.N Year Number of Respondents %1 Before1998 6 5.92 1998__2002 17 16.663 2003_2008 79 77.54 Total 102 100
Source: Own Sample Survey: 2008
4.2.3 Legal Status of MSEs Sample BDS Users
Most of the MSEs BDS users that covered by the sample survey are legally registered.
Accordingly, 81 enterprises (79.41%) were registered legally and 21 enterprises (20.59%)
were not legally registered during the establishment time (See figure 4.2.2). This implies
the government is promoting MSEs who don’t have legal licenses. This discourages
directly to legal MSEs.
Figure 4.2.2
The legal status of the survey sample Enterprises
81, 79%
21, 21%
Legally Registered
Not Registered
Source: Own Sample Survey: 2008
As can be seen from figure 4.2.2, the unregistered BDS user enterprises may face
challenges when they are linked to and operate in the formal market. Therefore there is a
problem to deliver the BDS services because some of the BDS services providers may
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place preconditions. So the enterprises should full fill the legal registration in order to
compete in the free market.
4.2.5 Level of Education
The majority of sample BDS user operators (60.8%) were between grade five and ten
during the survey. Enterprise owners who do not read and write were only 3.9%.
This is the highest number when we compare with total MSEs census of the city. We can
see the trend of the education level BDS users target groups, as indicated below in figure
4.2.3 below.
The Highest Education Level of Sample BDS user Respondent Enterprises
The Highest Education Level of the Respondents
0
5
10
15
20
25
30
35
40
Level of Education
Nu
mb
er
of
res
po
nd
en
ts
Number of respondents
Source: Own Sample Survey: 2008
Figure 4.2.3
As the level of education go up it is obvious that contributes positively to the
development of MSEs by using modern way of business management and transferring
appropriate technology like BDS services.
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4.3 Approach and Modalities of BDS Delivery
4.3.1 Modalities of BDS Delivery
In order to benefit MSEs over the long run, it is important for MSEs to have access to
high quality BDS services (MCvay et al: 2001). The market development thinking
supports the idea of not only increasing the availability and consumption of BDS services
but also help MSE access to increasing better services over time. The larger the
commercial BDS providers, the more the market options for the BDS user operators.
According to Zewede eta,l ,the government is involved as the main BDS provider in
MSEs in a market where it fails. The authors also emphasized that BDS services are
mostly government initiated and supply driven. According the consultative discussion
with BDS provider especially government, there were two ways of providing BDS that
practiced in the Mekelle city. These were partial and full supports. The partial support
concentrated on seasonal like providing trainings and credit (example for large number of
MSEs who included in the package).How ever, full supports refers to BDS.
Though in the last few years, BDS services have been grown significantly in accessing
and scaling up, there is almost no BDS services on the basis of market or commercial
basis that are determined by demand and supply. Likewise, almost all the Mekelle Trade,
Industry and cooperative promotion office was delivering BDS service with out payment.
Additionally, The BDS services in general and short term training in particular was
provided with the help of perdaim for BDS users. We can observe table 4.3.1 below to
know the level of availability of BDS services with payment mechanism
Table 4.3.1 Availability of BDS Services
Type of Services Free Paid Total1 Short term training and assistance 76 76
2 Access to market 13 133 Input supply facilitation 4 1 54 Technology and product development 9 9
5 Infrastructure and working premise 20 1 21
6 Information and consultancy 95 95
7 Credit facilitation 85 85Source: Own Sample Survey: 2008
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According to census of MSEs conducted by Trade, Industry and Transport Bureau 2007,
there were 23,642 MSEs enterprises in which 25888 family, and 10,505 hired employees
in Mekelle City. The total employment created by the MSEs was 36,393 People.
The MSE operators were asked about their needs. As clearly stated in the census
document, there was about 10676 MSEs operators need training, 9772 MSEs operators
demanded for credit access, 12, 1122 MSEs needed working premises and 10,138 MSEs
need for market linkage. However the BDS providers in general and Trade, Industry and
cooperative in particular focus only on their annual plan with out considering the actual
demand of the MSE operators.
According to the impact assessment of MSEs Conducted in Mekelle city, out of the
total 3815 interviewees who were targeted and supported by the office of Trade,
Industry and cooperative promotion, only 2017 MSEs operators approved that they were
supported but the remaining 1798 MSEs were not.
In other way, the BDS market and program level of support indicators are used to
measure BDS and other support performance. Both an annual report figures and/or a
current status show, how ever, that BDS services were not delivered on the commercial
or market basis rather the services were delivering on the subsidy terms which were
initiated only from the side of the government as the survey and reports indicated. There
are two approaches of delivering BDS: traditional interventions (Supply driven approach)
and market development intervention (demand driven approach) (Gibson eta,l
2001).Traditional approach of BDS services are characterized and mostly delivered
through the government and donors. Such an approach of delivering BDS may crowd out
the existing and/or potential commercial providers of services.
Although there is broad support for the market development approach, there is still debate
as to whether it is appropriate for the poorest entrepreneurs. The approach is particularly
questioned by those inaccessible MSEs that are in remote rural area where market often
to deliver BDS effectively fails.
To achieve the integrated BDS for MSE operators the government promotion office has
designed various approaches and modalities to deliver the services continuously and
smoothly. The manuals and directives of the Bureau of Trade, Industry and Transport of
Tigray Region clearly indicate the criterion, steps and responsibilities of the government
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extension workers .The government aims to provide BDS to MSEs through its extension
agents. The government also aims to support the private BDS providers. However, there
were no yet strong BDS providers in the city. Therefore the whole BDS services
provision is loaded on the responsibility of the government. So, the government has
placed necessary standards and criteria that must be fulfilled by the BDS beneficiaries.
These are:-
The MSEs BDS user candidate should have the interest to need BDS service.
The MSE operator must provide reliable data and information about his/her
business.
The BDS user candidate should take his own responsibility and share that are
agreed and given by the extension worker.
The MSEs operator should have introductory experiences and exposures in the
business in which the it is engaged.
Any MSE operators these fulfill this criteria can be supported by the government.
Before delivering the BDS service, there are steps that have to be followed by the
government BDS extension workers.
The BDS services should be promoted to the public in general and MSEs in
particular by using various mechanisms such as formal and informal medias.
Based on the criteria given above the recruitment of BDS user candidates take
place accordingly. This is the directives but the implementation is done with
out the recruitment of BDS user candidates.
The government extension worker should prepare the situation analysis of the
targeted enterprises.
Based on the above situation analysis of the enterprise, there should be an
action plan designed to solve and implement predetermined duties and
responsibilities.
The extension worker must provide appropriate BDS service twice per week
for about five months based on the agreed and shared responsibilities.
The situation analysis and action plan should be implemented based on the
agreed program with in the scheduled.
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Finally the impact of the BDS services delivered with in the five months is
then assessed so that corrective measures can be taken.
In addition to these criteria, there are other factors that determine the recruitment of BDS
services users. The candidate should engage in sector of food and food processing,
metal and wood works, leather and leather products, construction or urban agriculture.
Further more, the BDS services that are provided by the government focused on human
development and management, preparation of business plan, market management, record
keeping, credit and saving facilitation, customer handling management ,selection of
appropriate technology and information with consultancy. These are directly integrated
with the BDS elements.
To deliver and provide the above types of BDS services, the office of Trade Industry and
cooperative promotion follows as indicated in figure 4.3.1 below.
BDS Approach and Delivery system in Mekelle City.
1st Step 2nd Step
3rd Step
Figure 4.3.1
As explained that the BDS user operators can’t get all the services in one institution. In
the first step, the BDS users may need support of either one or all the BDS service, and
then next go to the office of Mekelle Trade, Industry and cooperative promotion office to
communicate with respected experts and managers. Thirdly the BDS operators were
pushed to go in order to get the services from various organizations like (Credit from
microfinance, working premises from municipality etc...). There fore the process of BDS
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MSEs BDSUser operators who fulfilled
criteria
The gov.t of Mekelle Trade, Industry and cooperative
promotion office
Training Institution Micro finance and banks Mekelle municipality Other government and non
government organizations.
service delivery is time consuming. The GTZ approach of BDS service delivery adopted
by Mekelle Trade, Industry and Transport Bureau indicated that an extension worker
should provide only for 10 to 15 MSEs operators in one cycle (five months).According
the data collected from the Trade, Industry and Cooperative promotion, 10 BDS users
were served by 1 extension agents and 50 BDS users were served by 2 extension agents
in 2002/3, 2003/4 respectively. This shows the GTZ approach was followed during the
mentioned period. But starting from 2005/6 the BDS users were more than the extension
agents. This implies the GTZ approach, was violated. In addition, the implementation and
practices of the BDS service are different from the above criteria. The extension agents
did not go frequently as par the schedules. the consultative discussion with extension
workers and annual reports clearly indicated, there were many problems related with
BDS approach and delivery process that include trainings were not need based, credit was
not available and time taking and getting working premises was long process. Similarly,
the MSEs’ market was not linked with other organizations and private sectors because
MSEs operators are assumed inferior to other competitors.
In the same way, the extension workers who provide information and consultancy have
limited capacity and unable to solve the problems which are identified in the situational
analysis.
Even though the manuals, directives, standards and criterions of BDS delivery process
were available in the Regional Trade Industry, and Transport bureau, the administrators
of the one stop shop service centers along with their experts were not fully aware and
trained about the approach and delivery process of the BDS. The situation analysis and
action plans of BDS users were decided by the regional and Mekelle Trade, Industry
offices with out involvement and participating of the lower administration level like one
stop shop services centers. The extension workers seem less motivated because of low
salary, lack of transportation and unavailable training and appropriate careers. The
sample survey respondents were asked whether the BDS services were delivered
continuously or not, almost in all types of services (more than 50% of the BDS users
responded that the services were not delivered continuously as par the program. There
fore the BDS delivery services were not continuous and smoothly achieved as per the
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objective of the government, because the written directivities, plans, criterions and
standards were decided with out participation of the BDS beneficiaries (See table 4.3.2).
Table 4.3.2 Are The BDS Services Delivered Continuously As Par The Program?S.N Service type No Yes Total
1 Short term training and technical assistance 40 36 76
2 Access to market 12 1 133 Input supply facilitation 4 4 54 Technology and product development 6 3 9
5 Information and consultancy 50 45 95
6 Infrastructure and working premises 14 7 21
7 Credit facilitation 45 40 85Source: Own Sample Survey: 2008
The BDS services were not properly delivered to the MSEs operators as per the action
plan because both the extension workers and MSEs operators were not motivated and
interested respectively. There fore need based with full involvement and participation of
the MSEs and extension workers is mandatory to implement the BDS service and market
development. The survey BDS users were also asked why the BDS services were not
delivered properly. The reasons were ranked as 50% unsatisfaction with BDS services of
government and 32.2% time frame for the services is too long.
The current BDS delivery problems that are related with Mekelle Trade industry and
cooperative promotion office are elaborated with the help of chart in figure 4.3.2 below.
The first rank problem of BDS was unable to delivery smoothly and continuously and
second poor on time delivery of BDS. See figure 4.3.2 below.
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Figure 4.3.2
Probelms of BDs Delivery by ,Trade Industry and Cooperative Promotion Office in Mekelle
0 5 10 15 20 25 30 35
Poor ability to Identity customerneeds
Poor on time delivery of BDS
Failure to use current approachesof BDS
Lack of business experience andknowledge
Unprofessional behavior,including lack of confidentiality
Unable to Delivery smoothly andcontinuously
Other
Typ
es o
f p
rob
lem
Percentage of Respondents
Series1
Source: Own Sample Survey: 2008
4.3.2 Approach, Sustainability and Efficiency of BDS Delivery
4.3.2.1 Approach and Sustainability of BDS Delivery
Developing BDS market is one of the ensuring Sustainability of services delivery from
both an institutional and financial point view. The market development approach stresses
on the viability of individual services with respect to the commercial basis. Further more
if the BDS services are available, providers will carry out the delivery of the services
sustainability. BDS market approach clearly recommends that the government and non
government organization should focus on the facilitation of BDS a market development.
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Sustainability may be perceived in many ways. The BDS services are sustainable if the
following questions are answered correctly.
1. Are BDS providers generating their revenues primary from MSEs?
2. What portion of BDS providers’ revenue come from MSEs or related commercial
and other subsidy sources?
3. Are BDS Providers profitable based on the MSE revenue?
4. How do the providers compare with each other in terms of quality and prices?
5. .Are Every BDS services profitable or how they compare each other?
6. To what extent the different services are helping to cover the providers’ costs?
Although the above questions are basic indicators for measuring the institutional and
financial sustainability, the final expenses and revenues collected from BDS services
are not available in the office of Trade, Industry and cooperative promotion because
the BDS services are delivered with the other services like trade licenses, inspection
and monitoring of the construction in one stop shop services centers. The Trade,
Industry and cooperation promotion office has only from the government budgetary
sources. Likewise, the Trade and Sectoral Association and Mekelle women
Entrepreneur Association provided insignificant BDS services and have not any
revenue generation from the services they provided. This is a major challenge for
continuing the services of the BDS, if the single and subsidy source of government
budget is cut unexpectedly.
We know that the government intervene his hands where the market is not operate
correctly but the degree of intervention should be limited and gradual transformation
of the delivery to overtake by the private providers in order to develop BDS Market
development. The sustainability of the BDS services is not achieved with out the alive
of the micro and small enterprise. On the other hand, MSEs are more unstable and
entry and exist are at high rate. As the impact assessment survey revealed, that the
MSE operators were asked whether their enterprises are sustainable or not. Out of the
total 3825 MSEs operator survey respondents about 81.5% (3120) MSEs operators
responded that their business will continue and sustainable . However 18.5% (705)
MSE operators were challenged by many problems like lack of market access
unavailable of credit, lack of skilled and working premises. See table 4.3.3 below.
59
Table 4.3.3 Is Your Business Or Enterprise Sustainable.
S.N Type of Answer Number of Respondents %1 Yes 3120 81.52 No 705 18.53 Total 3825 100
Sources: Bureau of Tigray Trade, Industry and transport Impact assessment survey: 2007.
The sustainability of MSEs strengthened through the continuous skilled and
experienced expertise supports. The support services were not only provided during
the establishment of enterprises but also were important after the establishment in
order to be sustainable. Majority of the BDS users responded that BDS services were
not delivered continuously and smoothly as explained in the previous tittles. To
approve this idea and indicated in the MSEs assessment, out of the total 3818 (63%)
MSEs Operators responded that they did not get continuous supports from one stop
shop service centers in general and extension worker in particular.
Table 4.3.4 Are the over all Services provided by the Office of Trade, Industry and
Cooperative Promotion Continuous and Smooth.
S.N Type of Responds Number of Respondents %1 Yes 599 162 No 2411 633 Some times 806 214 Total 3816 100%Sources: Bureau of Tigray Trade, Industry and transport Impact assessment survey:
2007.
About 3816 sample, MSEs operators were asked from all kebelles of the city if they get
continuous supports. Even though continuous supports for MSEs operators were low at
city level, kebelle Quiha and Sewhinugus were better with compare to kebelle Addis
Alem and Aieder. We can see the level of continuous support distribution by each kebelle
in table 4.3.5 below.
60
Table 4.3.5 the Level of General Percentage Support Distribution for MSEs by
Kebelle
S.N Name of the Kebelle Are you supported continuously Total %
Total 4142 9947 23652 7134 55,901 32570 Source: Regional Trade, Industry and Transport Bureau Annual Report and Census Compiled By Researcher: 2008.
As table 4.4.2 indicated, the current needs of MSEs for training was 10,676. About 9772
MSEs demanded credit access 12,122 working premises. Therefore, there was about
32570 MSEs operators gab to be satisfied by partial service provider (especially
government).
4.4.2 Trends of BDS Sample Out Reach to MSEs( Full Supports)
The total population of MSEs operators were 23642 in the city. This implies the BDS or
full supports reach to MSEs operators is only 1028 (4.35%) of the total MSE enterprises
located in the city.
How ever, the BDS out reach or full supports is growing gradually in terms of quality and
diversification. Yet, all types of the services were not equally achieved as par the
objective of government. As table, 4.4.3 shows and frequently mentioned previously the
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performance of BDS service delivered to the MSEs concentrated on information and
consultancy, credit facilitation and training provision.
Table 4.4.3 Number of BDS Users by Year and Types of Services
S.N Types of BDS servicesYear
2003 2004 2005 2006 2007 total
1 Short term training and technical assistance
3 6 9 8 55 81
2 Access to market 0 2 0 3 9 14
3 Input supply facilitation 0 0 1 0 3 4
4 Technology and product development
0 1 1 1 7 10
5 Infrastructure and working premises
2 1 6 4 8 21
6 Information and consultancy
3 6 7 9 75 100
7 Financial facilitation 3 6 9 8 69 95
Total 11 22 33 33 226 335
Source: Own Sample Survey: 2008
All MSEs operators who had information about the BDS were not users in each type of
BDS services. Even supposing the BDS services were provided on the individual
enterprise needs, diversification with qualification of the services were not attained based
on their interests to all currently inaccessible MSEs operators. To explain more, the types
of service like input supply facilitation, technology and product development, access to
market and working premises should be used and promoted to all MSEs operators. See
figure 4.4.2 below.
69
Number of BDS Users by Type of Services
Number of BDS Users by Service Type
76
13
59
21
95
85
26
89
9793
81
7
17
0
20
40
60
80
100
120
Short term traingand technuccal
assistance
Access to market Input SupplyFacilitation
Technology aandproduct
development
Inrastreture andproduct
development
Information andconsultancy
finacialfacilitaation
Type of BDS services
Nu
mb
er
of
Resp
on
den
ts
Yes
No
Source: Own Sample Survey: 2008
Figure 4.4.2
4.4.3 Types of BDS Services and Awareness
The sample survey BDS users were asked whether they know about the various types of
BDS service or not. Most of them have more information about financial facilitation,
information and consultancy and short term training. In contrast BDS users have
relatively less information about technology and product development, input supply
facilitation and access to market. This is because Trade, Industry and Cooperative
promotion office has delivered BDS services concentrated on the above mentioned
services. The other BDS services were relatively forgotten through out the BDS users.
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Table 4.4.2 the Level of Respondents’ Awareness to Wards the BDS by Service Type
Type of services
Number of sample Respondents and awareness to wards the BDS
Extremely not well
Some what not well
Some what well
Extremely well Total
Short term training and technical assistance 0 2 15 69 86Access to market 3 3 15 17 38Input supply facilitation 3 3 12 13 31Technology and product development 4 5 6 15 30Infra structure and working premises 0 2 12 33 47Consultancy and information 0 1 11 82 94Financial Facilitation 0 2 13 81 96
Source: Own Sample Survey: 2008
4.5 BDS Effectiveness in Promoting MSEs Development
According to Frank Waltring 2004, the impact and effectiveness of the BDS services
have not been conducted because BDS is relatively new field that is still under going
innovation and experimentation and is thus evolving in terms of its approach and
paradigm. The author emphasized that most of the BDS evaluations have been more on
program design and implementation than the success and impact.
According to the conducted by World Bank in Kenya, BDS improved profits, sales and
investment (capital) in a significant proportion of BDS users. Besides, the BDS increased
the potential demand for business services. This research also shows that the BDS
services have enhanced sales, employment and asset creation significantly.
4.5.1 BDS and Sales of the Sample MSEs Operators
According the impact assessment of MSE conducted in 2007, out of the total 2699
sample respondents of MSEs operators 657 (24%) of them got monthly sales above birr
1000. And 613 (22.7%) MSEs Operators got below birr 300 sales monthly on average.
This implies the majority of the MSEs operators monthly sales concentrated on the
extremely high and low monthly sales of the range. Therefore the income equity or
71
distribution among the business enterprises is negatively affected we can observe the
details from table 4.5.1 below.
The Range of Monthly Average Sales by Number of respondents
Table 4.5.1
S.N Monthly average sales (Birr) Number of Respondents
Employment Created After and Before the BDS Services
0
10
20
30
40
50
60
70
80
Before After Before After Before After
Only 1 2_5 6_10
Number of Employment created
Nu
mb
er
of
Resp
on
den
ts
Food and Drinks
Production
Trade activities
Service
Total
Source: Own Sample Survey: 2008
As table 4.5.7 above shows Production industry grew at faster rate followed by food and
drinks with compared to trade activities and service sectors. This may directly related
with process of economic development theory that stated production grow first then
services.
The researcher has applied here also the wilcoxon signed test ranks to measure whether
the employment created by the MSE BDS users is statistically significantly acceptable or
not. The result shows that out of the total 102 sample MSEs BDS users 39 enterprises
changed their position to the next category of employment interval, however, there were
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about 63 sample BDS users remained of the same size before and after the BDS services
provision.
The researcher has tested change of employment before and after by the help of Z-value
based on the wilcoxon signed test ranks. As the result indicates, the absolute -5.891 Z-
value calculated is greater than 1.96 Z- value tabulated. There fore, we are more than
95% sure that the sample MSEs BDS users improved their employment generation status
when they were compared before and after the BDS services provision. See Annex 6.
The researcher also compared the BDS users with those who did not use the services
based on wilcoxon signed rank test. Out of the total four major grouped business types
which include food and drinks, production, trade activities and services, three of them
changed to the positive direction in terms of employment generation as compare to the
non similar BDS users located with in the same kebelle. How ever one major category of
business lagged behind the non BDS users.
Even though sample MSE BDS users changed in employment generation to the right
position with relation to the non BDS users that is not much significant. There fore the
change is not statistically significant. Correspondingly the magnitude of improvement is
not so strong. The statistical calculated out put is attached in annex 6.
To summarize the above discussion and findings, BDS appears effective in improving
sales employment and asset of operators. However, the results of employment and
capital, improvement are not as such satisfactory when the researcher compare between
BDS users and non BDS users.
4.6 Problems and Challenges of BDS in Promoting MSEs
4.6.1 Challenges of BDS and MSEs
Even though there are improvements and changes of the BDS performance like delivery,
scale and out reach, effectiveness in terms of employment and capital creation to develop
the private sector in general and micro and small enterprises in particular, it is not with
out challenges and problems of high quality diverse competitive and sustainable BDS
delivery. The government is the only BDS provider that implies, BDS service provision
is not market oriented and demand derived. Because the private sector has not developed
to provide fee based BDS services. The government with some non government
organization involved in all provision of training, consultancy and information,
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facilitation of credit and input, making of market access and preparing working premises
for the MSEs operators with fully subsidized and free of changes. As the consultative
discussion with the BDS provider experts indicated, almost all training program are either
highly subsidized or fully funded by the government, donors and NGOs. There fore there
is a crucial problem of BDS services to deliver continuously and sustainable to the MSE
operators in general and to the poor business operators in particular.
In this research the findings revealed that the only BDS provider is the government and
focus on the survival of MSE rather than reinforcing local BDS market development in
Mekelle city. The challenges and problems of the BDS include market distortion and
highly dependent on government with no alternative private provider, little innovation
and low out reach and with no sustainable. The market economies show that the
superiority of the market system which can be trusted up on still the government needs to
observe and if needed intervene to secure equal chances for market players. How ever
there are challenges and problems of BDS market which excluded the poor MSEs from
the mainstream of the market.
This research identifies that the over all supports are not sector specific with longer-term
commitment to address well market failures in the case of Mekelle city. As indicated in
the previous of this research almost all the respondents are not ready to pay for the
services of BDS and the level of entrepreneurial awareness is low in the MSEs in general
and in the BDS users in particular.
As the consultative discussion with current and potential BDS provider also indicate that
the role of information is neglected, by those who could offer it and those who would
need it. This leads to restricted access to necessary information on all levels of BDS.
There fore the key to a success full for BDS service market development approach is the
broad use of professional information.
The more information people have on a situation, the more competent they can be to find
solutions for themselves with out further interference of the state. How ever the
government has great role on the BDS market facilitating and setting up the frame works.
The approaches and BDS delivery is supply driven and traditional approach characterized
by government sources with full subsidy unsustainable service provision.
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The government of Mekelle Trade, Industry and Cooperative promotion has a strong
position to deliver and monopolize with no space for private MSE-BDS development.
Equally, BDS services are not embedded and clustered based on the win-win situation.
4.6.2 Problems of BDS and MSEs
As the census of MSEs conducted by Trade, Industry and Transport Bureau indicated
45.5% respondents out of the total have approved that they have the problem of credit
facilitation followed by 18% working premises. Similarly, according the impact
assessment of supports for MSE survey in 2007, out of the total 3716 MSE respondents
41 %( 1510) MSEs also approved that they have credit and finance problem in their
business. As table 4.8.1 indicated lack of skilled manpower ranked the least problem as
compare to other. See table 4.6.1 below.
Table 4.6.1 Mekelle MSEs Respondents By Business Problem Categories
S.N Types of the MSE problem Number of Respondents
%
1 Lack credit 1510 412 Lack of market 668 183 Unavailable of working premises 911 244 Lack of inputs 80 25 Unavailable of skilled manpower 15 0.46 Lack of skill and technology 86 27 Lack of equipment and furniture 55 1.58 Inflation 336 99 Other 55 1.510 Total 3716 100Source: Tigray Regional Trade, Industry and Transport Bureau: 2007.
In the same way, the sample MSE BDS users conducted by this research responded that
out of the total 102 sample BDS users 78 (77.5%) have the problem of credit facilitation
and availability.
As the frequency of the problem show, majority of MSEs have the problems of finance,
market, working premises and ability to manage the business. Observe figure 4.7.1 below
83
Mian Problems Of Sample Enterprises
75
41
13
61
7
25
11
79
37
12
21
0
0 10 20 30 40 50 60 70 80 90
Lack of market access
Lack of business skill
Production technical problems
Lack of record keeping
No qualified staff
High (material)costs
Lack of infrastructure
Lack of credit
Lack of working
Time consuming regulation
High taxes
Other
Typ
es P
rob
lem
s
Frequency
Frequency
Source: own sample survey
Figure 4.6.1
In general, the status of BDS service provision in Mekelle city can currently rated as very
low demand and supply. There fore appropriate BDS interventions are very necessary so
that to involve and strengthen the BDS provider and stimulating demand and supply of
the services.
CHAPTER FIVE: CONCLUSION &RECOMMENDATIONS
5.1 Conclusions
The over all tends of BDS services have been growing during the five years (2003-2007).
The office of Trade, Industry and Comparative Promotion has tried to enhance the skills
and performance of MSEs by providing them with a variety of BDS services typically
84
short tem training, credit facilitation, information and consultancy market linkage
services. Consequently, these services have been regarded as public goods which require
public delivery and public subsidy. These research findings indicated, the BDS services
have been based on a narrow view of MSEs requirements, that is supply driven rather
than informed by business requirements (demand driven).
The objective of this research was to assess approach and modalities out reach and scale,
sustainability and effectiveness with identifying the current challenges and problems and
successes of BDS in Mekelle city. Despite the achievements of growing trends of out
reach and effectiveness of sales increase, capital creation and employment generation,
there were problems related with reliance on supply driven approach and government
subsidy. The BDS services were not sustainable because of the dependency on the public
funds and delivery mechanism has seen service provision cease once finding is with
drawn. Moreover, the provision of public business services has not been linked to the
broad strategy of creating conducive business environment. Unfavorable regulatory
frame work and poor over all the BDS services delivery modalities and approaches
constitute perhaps the biggest constraints to BDS market development.
As the research findings indicated the source of BDS has been gradually increasing in all
over the region in general and in Mekelle city in particular. Even though the distribution
of the BDS to the one stop shop service centers is relatively faire, the coverage and out
reach of full supports or BDS services minimal. However, the partial supports like
training, credit provision and information and consultancy services were provided at high
rate as compare to the capacity of the Mekelle Trade, Industry and Corporative promotion
office.
Most of the MSEs BDS users covered by the sample survey were legally registered
however that of 20.59% of them were not legally registered that discourages the legal and
faire competition in the free market.
Generally, the findings of this research revealed that current approaches and
performances of BDS for MSEs in Mekelle city have not achieve at high level of
impact, expanded out reach, and sustainability. Even though sample MSE BDS users
changed in employment generation, capital creation and sales increase, to the right
position with compare to before and after the BDS services with in their enterprises, the
85
that was not statistically significant when it was compared with non BDS users. Like
wise, the improvement was not as such satisfactory.
The capacity of the MSEs operators in terms of capital, level of education, exposure to
business management was minimum. These problems aggravate to the poor management
of business and incapable to use the proper demand driven BDS services from the
market.
We can conclude that partial supports have been growing starting from 2004 to 2007.
How ever, the quality and diversification of the services are limited. Specifically most of
the MSE operators were supported only by the credit facilitation, short tem training and
working premises. In addition, the Trade, Industry and Cooperative promotion office has
delivered BDS services only for 1028.
Even though there are criterion of the Bureau that should be followed by the extension
agents, the practices of BDS provision services were different from the directives
criterion and highly suffered with unable to involve the interest of extension agents BDS
beneficiaries.
The provision of BDS services has not publicized through out the city of Mekelle.
Therefore, MSE operators were not aware about the BDS services. This contributes to
low level of coverage and out reach of he services. Likewise, almost all the BDS users
have not paid any thing for the services provided.
Even though the government of Mekelle in general and Trade, Industry and comparative
promotion office in particular have tried to decentralize their forms to the lower level of
one stop shop services, the results and intended objectives were not achieved
significantly.
Similarly, the extension agents were pushed to provide and include more operators than
they can. There fore the approach and delivery of the BDS were worsened because of not
only low level entrepreneurial capacity of the MSE operators but also the incapable of
implementing agencies.
One can conclude that BDS services have improved, record keeping systems, sales,
income, and asset creation and increase the cash in business. But the Bureau of Trade,
Industry and Transport in general and Mekell office in particular were incapable with the
86
new approach of BDS Market development. As the result of this research revealed, there
were other factors that causes for the change and effectiveness of the individual
enterprises.
The supports of the BDS more focused on the micro and newly established enterprise
than enterprise stay long in the business. The reason may because of the challenge in
reducing chronic unemployment rate which deteriorate the income of urban poor people.
The start-up young, established businesses need a broad variety of individual services for
their development. There fore government has the role to provide services for the newly
established micro enterprise.
However, strong position, some times monopoly of the state on BES services doesn’t
leave space for private BDS market development. Incentives for the facilitators and
potential BDS providers were neglected, at all levels of the stages.
The government has not clearly separated poor from rich MSEs to provide BDS services
for the enterprises who were poor and able to pay fees based on the current demand and
supply. And BDS supports were provided generally with out set up high selection
standards and criteria.
The crucial problem of BDS delivery was providing continuously and as par the objective
of program.
The market economies stated that the superiority of market system which can be trusted
up on still the government needs to observe if needed intervene to secure equal chances
for market players. How ever there were challenges and problems of BDS market which
exclude the poor MSES from the main stream. And this research identified that the
partial supports in general and full supports (BDS) in particular were not based on the
principle of subsidy for the poor MSEs.
In addition, the services provided to the MSEs were not initiated from the need
assessment and sector based supports. Trainings and information for example were
provided with out watching of the real ground and problem analysis of individual
enterprise.
5.2 Recommendations
87
As the research findings indicated, BDS promotion experience has been prompted by
general was not been successful in terms of out reach, sustainability and impact. A key
priority has to be given identifying and transfer of lessons from wider experience.
Therefore, the objective of intervention seems to be BDS markets with more providers
offering different types of services for businesses and offers a means of reaching more
people on sustainable basis. The government seems to intervene with specific purpose
that is to address the constraints of BDS markets from functioning effectively. Like wise,
public supports and interventions should offer with explicitly picture of how
sustainability and efficiency are achieved.
This means, for example, the issues, such a cost control, payment for services and
performance measurement and evaluation have to be considered from the outset rather
than as an after through. Additionally, the BDS interventions should be also offered with
a clear view of how broad impact and out reach will be achieved. The provision of BDS
services are the duties and responsibilities of many stake holders and actors that leads to
integrated themselves in order to provide diversified and quality BDS services for the
MSES operators.
Most of the MSES operators are not aware about the benefit of the BDS service. There
fore, services provided by government should bet shifted to the private sectors with the
total awareness creation and involvement of the beneficiaries. This can be done through
the integration of entrepreneurship awareness in to mainstream education and other
communication channels and strengthening net works with private BDS providers,
chambers, associations, and research and industry institutions. The more information
people have on situations the more competent they can be to find solution for them
selves.
The MSEs Operators are pushed to take training and related BDS service with out their
full involvement. This leads to fruitless use of resources. There fore, it is better to let
space for individual development with out force every one in to the same scheme.
The major role of the government can be achieving the equity by creating access to
services and investing more on public benefits. However, the market should not be
distorted. Therefore, the government has to withdraw from an achieve role in the market.
Only services are to be offered, that can not be done in better way in competitive market.
88
Similarly, the government should concentrate setting up the frame work (rules and
regulations, infrastructure, standards etc…).
It is not better to look at individual enterprises, but on the inter dependencies of the
market (where do which people exchange, how do they come together).this means that
the government has to aware how the actual market works and where it does not function
well.
After this analysis, a specific BDS supports and intervention might be helpful to bring
market players together. It is the market players, who can best match demand and supply.
The way it works for normal goods, it also works for services, such as BDS. Efforts to
develop private BDS markets should be complemented with a reduction and
rationalization of public sector involvement. Reducing the traditional government role in
service provision can be encouraged by requiring steady increase in cost recovery to
achieve financial and institutional sustainability which the private sector to deliver
publicly funded services and more regions impact evaluation tied to budgeter allocations.
Rationalization of public expenditure on BDS can be accompanied by privatization of
programs that have achieved full cost recovery.
The BDS services supports should be capitalize on their strengths as they are performing
well in achieving the partial support of training, credit facilitation and information and
consultancy. The government is better to introduce cost sharing mechanisms gradually
specially for the BDS services such as advertising, market research, training or
consulting, business plan or record keeping and auditing.
Similarly embedded services with in a trading relation ship in physical goods such as
design quality and market information to a producer from intermediary buyers should be
provided on the fee basis in order to achieve efficient and effective BDS service delivery.
The organization and potential private BDS providers need to diversity the services to
enable MSEs operators to choose and gain maximum benefit to wards growing their
business, as intended by the programs.
The education level of every individual BDS users should be upgraded to introduce
appropriate technologies that contribute to expand their business. The current BDS MSEs
supports are mixed up with the other services which are carried out in all over the city
89
according to the annual plan of the Trade, Industry and cooperative promotion office.
Therefore, criterion and standards, for the selection of BDS users should be clearly
placed in order to reduce over lapping full supports (BDS) with partial supports.
The directives and manuals of the BDS services did not promote to operators who have
not legal licenses but this research finding indicated that about 20.59% were none legally
registered. There fore, government subsidy and supports of BDS should be match with
the concepts and systems of the free market competition. The laws and legal trade should
be maintain and respected with according to the BDS promotional activities.
The BDS delivery approach is not clearly understood by all level of implementing
experts, managers and extension agents. Continuous and consistent training and
information exchange with monitoring and evaluation that contribute to the maximum
results and achievements.
There are some improvements of business enterprises as the result of BDS services but it
is not significant change as compare to BDS users with non users therefore, more
researches to wards the impact of BDS with corrective measures should be expected from
the supporter institutions.
To promote BDS services based on the need assessment of individual operators problem,
establishment of competency profile for the staff experts managers and extension agents
is very necessary in order to provide incentives for these who perform maximum results
and changes.
List of FiguresFigure 2.1.1 Poverty impact through Economic Growth Generated by participating Small Enterprises through provision of the BDS services
Figure 2.1.2 Traditional Approach: Substitute for the market
Figure 2.1.3 Facilitating BDS market development
Figure 2.1.4 Alternative Approaches for Facilitation of BDS
Figure 2.1.5 Types of BDS activities achieved
90
List of Tables
Table 2.2.1 Reason for Getting In the Specific Business
Table 2.2.2 Institutions that Supported MSE
Table 2.2.3 Report of the third BDS cycle (1/2004-6/2004Table 2.2.4 3rd BDS delivery cycle for Tigray ReMSEDA (January to June 2004)
Table 2.2 5 Changes brought by type of business and gender
91
Table 3.1.1 Major Business Group by One Stop Shop Service Centers That Get BDS and
Sample Sized Taken
Table 4.2.1 Business Category of BDS by One Stop Shop Service Centers
Table 4.2.2 Initial Capital during the Establishment of EnterprisesTable 4.2.3 Age range of the sample BDS user Operators
Table 4.2.4 Age range of the sample Enterprises Table 4.3.1 Availability of BDS Services
Table 4.3.2 Are the BDS Services Delivered Continuously As Par The ProgramTable 4.3.3 Is Your Business or Enterprise SustainableTable 4.3.4 Are the over all Services provided by the Office of Trade, Industry and
Cooperative Promotion Continuous and Smooth.
Table 4.3.5 the Level of General Percentage Support Distribution for MSEs by Kebelle
Table 4.3.6 Sources of BDS Service Provision by Institution TypeTable 4.3.7 Business Training Provided by Nongovernmental Institutions by Year
Table 4.3.8 the Sources of Information for BDS Users
Table 4.4.1 Number of MSEs BDS Operators (2003 _ 2007Table 4.4.2 Types of Supports Delivered by Mekelle Trade, Industry and Cooperative
Promotion Office from 2004 to 2007
Table 4.4.3 Number of BDS Users by Year and Types of Services
Table 4.4.2 the Level of Respondents’ Awareness to Wards the BDS by Service Type
Table 4.5.1 The Range of Monthly Average Sales by Number of respondents
Table 4.5.2 the Extent of Enabling Support Services to MSE Operator as the Result of
BDS Services Delivery by Type of Services
Table 4.5.3 Average Monthly Sales of Sample Enterprises before and after the BDS ServiceTable 4.5.4 Wilcoxon Signed Ranks Tests
Table 4.5.5 the Level of Asset (Capital) Created in the Sample Enterprises Before and
After the BDS Service Delivery by Number of Respondents
Table 4.5.6 Capital Out Put of Each Sample MSE BDS Users Analyzed Based On
Wilcoxon Signed Ranks Test.
Table 4.5.7 the level of Employment created in the sample Enterprises Before and after the BDS Service Delivery by Business categoryTable 4.6.1 Mekelle MSEs Respondents By Business Problem Categories