The Private Sector Foundation Uganda (PSFU), in collaboration with the Mastercard Foundation and the African Management Institute (AMI), has created a preliminary version of national business development service (BDS) standards. These standards aim to enhance the capabilities of providers who serve micro, small, and medium enterprises (MSMEs).
The primary objective is to improve the technical support available to MSMEs, which play a crucial role in economic growth and job creation. Additionally, the standards aim to provide training to BDS providers, helping them better serve MSMEs.
Business Development Services encompass a wide range of non-financial services used by entrepreneurs to improve their businesses’ performance, access markets, and compete effectively. BDS providers can be individuals, companies, or associations offering services like training, coaching, business incubation, consulting, and business acceleration.
According to Francis Kisirinya, Chief Membership Officer at PSFU, these BDS standards draw from international best practices in BDS delivery, standard expertise, and the specific Ugandan context.
To ensure a consultative and participatory approach to developing BDS standards, a technical working group was established. This group considered the input and perspectives of key players in Uganda’s MSME ecosystem, including prominent figures from business, industry, academia, and the public sector.
Two key standards will be implemented to enhance BDS providers’ and MSMEs’ capacities. The first standard focuses on improving the competency and internal capacity of BDS providers, addressing weak management practices and poor investability. This standard covers areas such as leadership, planning, operations, and resource management.
The second standard concentrates on service delivery, offering guidelines for effective BDS provision to MSMEs. It addresses issues such as contextualization, segmentation, specialization, and more. This standard emphasizes guiding principles in areas like leadership, planning, operations, talent, and finances.
Both standards have been developed and submitted to the Uganda National Bureau of Standards (UNBS) for approval and publication. In the interim, they will serve as benchmarks for BDS service providers in the ecosystem when offering services to MSMEs.
Francis Kisirinya stated, “Investing in high-quality BDS can accelerate MSME growth and create jobs. Compliant BDS providers, adhering to world-class standards and research, can drive meaningful change for Ugandan MSMEs, including improved performance, job preservation and creation, and enhanced livelihoods. BDS providers themselves can benefit from improved skills through standards dissemination and training, increased income opportunities, and the provision of quality standardized services that MSMEs are willing to pay for.”
To implement these standards, PSFU will conduct various training sessions and engagements with BDS service providers and users across the country. The campaign will also equip organizations, entrepreneurs, and business professionals with information about Uganda’s newly formulated business development support standards, tools, mentorship, and resources required for sustainable business growth.
Furthermore, through mentorship, workshops, and strategic resources, participants will gain insights into business development standards, acquire practical strategies to navigate business challenges, seize opportunities, build meaningful connections within the business community, and access a suite of resources, including training and practical online tools.
The sensitization campaign will run for six weeks, starting in mid-September, in four regions across the country: Kampala, Masaka, Gulu, Mbale, and Mbarara. It will include two days of in-person training for BDS providers and 12 months of program support through the AMI platform, targeting 200 BDS providers, particularly those serving youth- and women-led businesses and rural enterprises.
John Walugembe, Executive Director of the Federation of Small and Medium-Sized Enterprises, acknowledged the challenge many businesses face in finding genuine experts to guide their growth. He welcomed the BDS standard-making process, emphasizing the need for professional BDS providers who meet certain standards and expectations in service delivery to address this issue.
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