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Business Development Services Fund Management

Strengthening 70 Ghanian BDS providers and 66 MSMEs through a market-driven BDS development fund


YEARS

2013

CLIENT DESCRIPTION

The Ghanaian Ministry of Trade and Industry (MoTI) is striving to increase the competitiveness and employment levels within micro and small enterprises (MSMEs).

CLIENT'S OBJECTIVE

To use a $2 million development fund to strengthen the capacity of local intermediaries to deliver financial and nonfinancial services to MSMEs on a sustainable basis, and to assist MSMEs in using these services productively.

Results

BUSINESS RESULTS

Designed a market-driven BDS fund, requiring participating companies to cover 50% of the cost of the business development services they used.

During the two year project, disbursed the majority of the funds to 66 participating companies to pay for business development services. Ten of the recipients were companies involved in renewable energy.

70 BDS providers in 8 regions attended BDS training programs, as well as executives from business membership organisations and 200 fund applicants.

SOCIAL & ENVIRONMENTAL OUTCOMES:

Ten commercial clean energy enterprises are providing improved renewable energy services.

Ten value chains are stronger as a result of greater quality control, business performance and new linkages among the companies within each value chain.

New job opportunities were created for women.

Activities

Designed and managed the $2 million development fund, focusing on businesses in agriculture, food processing, plastics, salt, cosmetics, textiles and garments, tourism, horticulture, furniture, construction and renewable energy. Responsibilities included marketing the fund, supporting businesses to prepare grant applications, selecting and contracting businesses to receive the grants, and monitoring the grant projects’ progress.

Built the capacity of business development service (BDS) providers, including business associations, chambers of commerce and sector organisations, primarily through training programs and on the job mentoring and coaching.

LEARNINGS

A market-driven matching grant fund (50% of the cost is paid by the recipient) is key as it ensures that businesses respond fully to the offered services to stimulate their growth. The team identified the need to also offer access to finance in combination with business development services. This can be resolved by encouraging partnerships between the entrepreneur, the BDS provider, financial services providers and local facilitators.