Implementation of market linked Business Development Services (BDS) in MSME Clusters

The MSMEFDP has a Super goal of increasing income and employment MSMEs. The Project aims to achieve this by the provision of Business Development Services (BDS) to catalyze growth and competitiveness in MSME Sector.

The Project aims to contribute to overall generation of income, jobs and contribute to sustainable development. The experience of implementing pilot phase in 3 clusters has shown that despite having a genuine and large scale demand for such services, MSMEs have limited knowledge and resources to overcome challenges. On the other hand, BDS providers do not see MSMEs as a lucrative market for providing strategic services. It is this gap that the Project tries to bridge by facilitating a market oriented nexus between the demand and the supply of services. 

The strengthening of BDS market in select clusters is the cornerstone of the Project. In its pilot phase, Project was implemented in coir (Alleppey), leather (Kanpur) and fruits and vegetables (Pune) clusters.

Interventions originally concentrated on providing training, consulting, and other services that address internal constraints faced by the enterprises. The horizon has progressively expanded to include marketing services and information resources that assist small businesses gain access to services usually enjoyed by larger corporate.

With about 1040 programs and events in the Project has reached over 23500 participants including MSMEs, BDS providers and other stakeholders. With various successful initiatives made, key learning documented, capacity of stakeholders built and significant visibility of the Project during the pilot phase, the long term BDS intervention has been now expanded in 15 more clusters. These include pharma, engineering, floor-coverings, knitwear, dyes and chemicals, leather, and fruits and vegetables sub-sectors (see table below). Project is also working with a few stand alone initiatives in some clusters.

Some of the key Initiatives undertaken in pilot phase are listed as below:

Developing skills and proficiency for business development has been one of the foremost goals of the Project for sustaining enterprise competitiveness in rapidly changing, liberalized economy. Project initiatives involve a wide array of services such as training in ICT, workshops providing exposure to new technology and bigger markets, and resolving problems of inferior quality design by way of trainings etc.

Project outreach under BDS
(click on the location to visit the cluster website)