21 - Role of Business Development Service Providers

Role of Business
Development Service
Providers Implementation of
Technology transfer
Lakshman Wijeyewardena
19-08-08 Director General
Industrial Services Bureau 1
SME Demarcation in Sri Lanka
Based on Asset value (excluding land and
building)
Small enterprises Rs. 01 20 million
Medium enterprises Rs. 21 50 million
Ownership Structure
80% Sole proprietorship and partnerships
Principle business market

86% Domestic
14% Exports
Role of BDS Providers
Visionary
Access and
Well Legally Technologically Assured Higher Profit
sound to objective
planned accepted sales productivity maximized
finance oriented
Expected Business
Non financial
services
Services ? BDS Provider
Present Business Financial

Services Lakshman Wijeyewardena
19-08-08
New / Existing Director General
Types of BDS providers
Government ministries and departments
Mostly free of charge or subsidized
Effectiveness of service delivery varies
SMEs perspective on Gvt. BDSs
Policy making
INGOs and NGOs

Limited focus
Absolutely free of charge
Limited to project period
Limited to target group and locality
Associations and Societies
Sector base
Initiated because of an influence
Free services
Voluntary contribution
Private Institutions
Specialized or multidisciplinary
Profit oriented and fee based
Sustainable market strategies
Business Development Services
(BDS)
(01) Planning and Management Services
(02) Marketing Services
(03) Training Services
(04) Technical Services
(05) Policy Support and Implementation
(06) Research and Development
(07) Financing
(01) Planning and Management
Resource identification Services
Market trends and network
Potential sectors Vs geographic areas
Evaluation of entrepreneurship competencies
Matching entrepreneurs with viable businesses
Business planning
Feasibility studies
Pre-investment studies
Performance evaluations
Financial analysis
Development of business plans
Business appraisal
Business evaluation
Accounting & auditing
Business registration & licensing
Management information systems
Linking with financial institutions
Productivity development
Business counseling
Formation of associations for mutual problem solving Lakshman Wijeyewardena
19-08-08 and lobbying Director General
(02) Marketing Services
Market research
Market plan
Market linkages
Trade fair & exhibitions
Advertising & sales promotion
Export / import marketing
e-marketing
Marketing evaluation
Incentive packages for market development
International Business exploration visits
(03) Training Services
Training need assessment
Training program design
Training module preparation
Management training
Mobilization training
Enterprise development training
Vocational training
Leadership training
Technical training
Human resource development training
Business counseling
Institutional development training
Capacity development training
Training program evaluation
(04) Technical Services
Technical trainings (agriculture,
engineering, dress making, beauticulture,
electrical, etc.)
Technology transfer
Product development
IT Services
Packaging & labeling
Quality control
Policy Support and Implementation
Support the government or policy makers to

develop new policies and involve policy changes
Support to the government for policy

implementation and policy decision
Policy development research Need & impact

assessment and policy suggestions
Research and development
Survey programs
Need and impact assessment
New technology identification
New product & development
Methodology development
Coordination with research & development
organizations
Financing
Finance Product
Credit
Savings
Insurance
Money transfer
Bank draft
Collateral Vs Business feasibility and

entrepreneurship
Problems in SME Sector
Sri Lanka experience
Small
Lack of access to market
Local or regional market focus
Infrastructure for SMEs based in rural areas
Quality of infrastructure (electricity fluctuations)
Technical weaknesses
Lack of entrepreneurship
Lack of skills (Product development, Packaging, Distribution, Sales promotion)
Financial barriers
Inefficiencies in management of finance
IT problems and access to information
Policy decisions (tax, imports etc.)
Lack of skilled labours
Lack of a network
Low productivity
Problems associated with BDS Market
There is no standardization of BDS providers
Lack of clear cut government policy and rules and
regulations governing BDS markets
Repetitions of BDS service especially from government
sector
Free of charge or subsidized BDS services (Gvt. &
NGO) Vs Fee based BDS (Private Institutions)
Attitude of SMEs for paying BDS
Absence of coordinated effort for BDS delivery
Distorted and discontinuation of BDS markets by
projects
Lack of technically qualified officers with BDS providers
Barriers in finding, adopting & using
technology
High cost of plant & machinery & equipment
High cost of burrowed capital
Limited market opportunities for upgraded products & services
Unavailability of expertise
Unaware best technology
Unaware which technology is most needed
Personal attitudes
Reluctant to pay for BDS services
High cost of expertise
Lack of skilled labour
Environmental barriers
Rules and regulations
Different policies in the Region
Factors Affecting Competitiveness
& Business Viability
Affordable loan interest rates
Business friendly banks
Affordable power costs (in a region)
Incentives for alternative power applications
Improve product or service quality from new technology
adoption
Reduced import tariffs
and eliminate non tariff barriers
Marketing linkages & opportunities
Factory efficiency & effectiveness
Business innovativeness
Success Factors
Sustainability
Out reach Impact
Area
No. of
people
Service Lakshman Wijeyewardena

19-08-08 portfolio Director General
Effective BDS for Technology
Promotion
Reputation and image
Information with regard technology
Incentive schemes (loan etc.)
Awareness campaign (international and local exposure
to SMEs)
Technical and financial feasibilities (cost benefits) with
evidence
Cluster or Nucleus based approach for technology
procurement
Promotion of incubators
Commercial approach
Partnership or accountability (results based charging for
BDS)
Industrial Services Bureau
Thank you
Industrial Services Bureau

21 - Role of Business Development Service Providers

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Role of Business

Principle business market

Services ? BDS Provider

Present Business Financial

INGOs and NGOs

Support the government or policy makers to

Support to the government for policy

Policy development research Need & impact

Collateral Vs Business feasibility and

Out reach Impact

Service Lakshman Wijeyewardena

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