AlappuzzhaBDS

Our Approach

In advanced economies, BDS is a business-to-business service provided by private firms. Government BDS delivery is commonly focused on disadvantaged groups or groups that are underserved by the market, such as businesses in low-income neighborhoods or businesses on the verge of bankruptcy. In developing economies, the market for BDS is generally less mature, with a limited number of providers serving the private sector. Where there is supply, it is usually focused on larger corporations, leaving the SME and micro-enterprises with limited options. In response, governments and public agencies have often stepped in to fill the supply gap.

However, growing consensus points towards BDS being most effectively delivered by private providers. Spurred by profit incentives, private providers will be motivated to actively pursue new clients and expand their reach; challenged by competition, they will be forced to offer a high quality product and continuously innovate to maintain market share. Therefore, BDS interventions focus less on the direct delivery of BDS to SMEs, but more on supporting the development of a self-sustaining private market for BDS.

Specifically, the implementation in Alappuzha Coir Floor covering cluster will entail:>

•	Building the capacity of BDS providers to effectively cater to the needs of the SMEs.

•	Support networking and collaboration among BDS providers (both private and public, such as those from business associations) within India as well as other parts of the world.

•	Facilitate business linkages between SMEs and larger corporations, working through business associations.

•	Developing high quality, practical entrepreneurship and management training for both start-up and more established enterprises.

•	Improve access and adoption of new, appropriate technologies among SMEs, facilitating information dissemination, technology transfer and match-making.

BDS providers will be strengthened in areas of :

Production

   Technology
   Processes
   R&D
   Design
   Quality
   Packaging

Finance

   Term loan
   Working capital loan
   Hedging
   Funds flow

Marketing

   Domestic
   Exports
   Brand
   Exhibitions
   Materials
   PR &Communications

Organisation

   Training
   Patents
   IT
   Inventory
   Legal
   Sourcing
   Logistics

Frameworks & tools to be used in the implementation of this project are :
BDS Support Across the Value Chain Porter’s 5-Forces Cluster mapping Seven Forms of Capital Diagnosis Cluster diamond analysis M&E Framework for the BDS Strategy

The project implementation in Alappuzha Coir Floor covering cluster will be done in 3 phases :
Phase I : Cluster Mapping and Business Plan Development Phase II : Project Implementation Phase III: Learning and Close-out