OBJECTIVE

The objective of the Business Development Services (BDS) Fund is to boost micro, small and medium enterprises (MSMEs) performance and employment levels by expanding the capacity of BDS providers in terms of their quality, outreach, cost effectiveness, impact and sustainability.

SERVICES

The component combines two approaches:

1. Business Development Services (BDS) Fund
The BDS Fund has provided matched performance grants to BDS providers supporting a diverse range of MSMEs. Specifically, the BDS Fund provides matching performance grants to BDS providers serving the MSMEs market and operates in Abia, Kaduna and Lagos States. The BDS Fund does not provide direct grant support to MSMEs.

To date four (4) calls have been made resulting in forty seven (47) BDS grants for approximately $3 million, of which $2.08 million has been disbursed. BDS Providers have supported a total of 9473 Micro, Small and Medium Enterprises (MSMEs) at an average cost recovery rate of 57%. The achievements to date are far in excess of the target for the Project.

2. Industry Value Chain Development Program

The objective of this subcomponent is to improve the competitiveness of firms in specific industries by promoting the Value and demand of BDS and complementing this with private sector-led networking and market linkages. The Industry Value-Chain Development sub-component combines an industry focus and market development approach to the provision of business development services (BDS) and complementary private sector capacity building within the value chain. The assumption was that focusing on high growth sectors and addressing the inefficiencies along the chain could result in high and measurable impacts in terms of job creation and firm growth.

Industries were selected according to the following criteria:

(i) high growth potential;
(ii) size of the industry (contribution to GDP) and geographical distribution;
(iii) number of MSMEs in the value chain and SME employment;
(iv) potential for local MSMEs to capture more value added; and
(v) evidence that financing/ TA could help MSMEs achieve the above two goals, i.e., there are no structural/business environment constraints outside the scope of the Project that would prevent success.

3. The Business Developments Services Fair
The BDS Fair is aimed at further stimulating and strengthening the market for BDS by staging an event that allows BDS Providers and MSMEs to demonstrate the impact of the fund. The BDS Fair was launched on the 6th May, 2009 by Mr James Ebustse (MSME Project Coordinator & Director Policy Advocacy & External Relations) representing Engr. Mustafa Bello, FNSE, Executive Secretary, Nigerian Investment Promotion Commission (NIPC) at the Lagoon Restaurant, Victoria Island, Lagos.

Following the launch in Lagos, the BDS Fair was also held on June 18th and June 25th at ASAA Pyramid Hotel, Kaduna and Luxury City Hotel, Aba, Abia States respectively. The 3 events attracted approximately 1000 participants.

For more information please contact : The BDS Specialist/Fund Manager, Mike Bassey; mbassey@msme-nigeria.org