1. Page 1 FICCI MSME Workshop 2013 10/10/2015 Making BDS Market Work For MSEs Amit Kumar, GIZ Private Sector Development

2. Page 2 GIZ in Brief Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH 100% federally owned, public-benefit enterprise, supporting the German Government in achieving its objectives in the field of international cooperation for sustainable development promoting international cooperation for sustainable development and international education work. > In 130 countries worldwide; > 17,000 staff members -German Federal Ministry for Economic Cooperation and Development (BMZ)  Promoting MSME Growth = a priority area of GIZ Private Sector Development 10/10/2015 FICCI MSME Workshop 2013

3. Page 3 GIZ – Outline of our Work FICCI MSME Workshop 2013 10/10/2015 Priority Areas in India of German Development Cooperation Energy Contributing to improvement of both quality and quantity of energy supply in a resource efficient manner Environment Conservation and sustainable use of natural resources as well as sustainable urban & industrial development Sustainable Economic Development Private Sector Dev. Financial System Social & Econ. Policy

4. Page 4 Business Development Services (BDS) FICCI MSME Workshop 2013 10/10/2015 Wide range of services used by entrepreneurs to help them operate efficiently and grow their businesses with the broader purpose of contributing to economic growth, employment generation, and poverty alleviation

5. Page 5 Technical Assistance Training Business Development Services (BDS)….Product Development Technology Market Access Inputs & Infrastructure

6. Page 6 BDS Market Functioning FICCI MSME Workshop 2013 10/10/2015 Supply Demand Transactions  Limited MSME information  Inappropriate/ Standard Solutions  High cost of Client acquisitions  Non Availability at Cluster  Limited understanding of service needs and benefits  Lacks ability / willingness to pay  Don’t know where to get from

7. Page 7 Making BDS market work for MSEs  Not a subsidized models of service provisioning  Focus on building vibrant, commercial and sustainable service markets FICCI MSME Workshop 2013 10/10/2015 Strengthening the ability of a range of profitable BDS providers to offer demand-driven, affordable, and strategic services to a large number of MSEs”

8. Page 8 Role of Market Facilitators: FICCI MSME Workshop 2013 10/10/2015 Targeted Intervention to address specific bottleneck after understanding and assessing the market  Connect BDS providers and MSEs,  Designing affordable and customized service products  Building MSEs’ awareness of services and their benefits  Modeling new payment and delivery mechanisms

9. Page 9 FICCI MSME Workshop 2013 10/10/2015 Business Model of Service Delivery and MSME (FICCI – SIDBI-GIZ –IFC)

10. Page 10 Objective To identify, analyze, describe and disseminate business models of service delivery to MSME; to stimulate thinking and enhance learning among different stakeholders. FICCI MSME Workshop 2013 10/10/2015

11. Page 11 Approach and Methodology FICCI MSME Workshop 2013 10/10/2015 OpenHandpicked

12. Page 12 Select Cases FICCI MSME Workshop 2013 10/10/2015 CAPSULE Franchise India Google IamSME RBC redBus Sanblue Indiamart MSME Soln. Cent.

13. Page 13 Learning: Common Key Operating Principles  MSME is a price and value sensitive market, which requires building trust and transparency  Need to create collaborative ecosystem for last mile connectivity  Focus on offering need based end to end solutions, rather than offering standardized solutions  Leverage the innovative use of technology for offering cost effective solutions FICCI MSME Workshop 2013 10/10/2015

14. Page 14 THANK YOU Contact amit.kumar@giz.de amit.kumar@giz.de 10/10/2015 FICCI MSME Workshop 2013