Analysis of the Supply of and Demand for Business Development - - PowerPoint PPT Presentation

Ministry of Commerce UNDP Partnerships for Private Sector Development Ministry of Commerce UNDP Partnership for Private Sector Development Training Needs Assessment

Analysis of the Supply of and Demand for Business Development Services in Afghanistan

Ministry of Commerce UNDP Partnerships for Private Sector Development Training Needs Assessment Components

• Assessment of Demand
• Assessment of Supply
• Gap Analysis
• Recommendations
• Strategy

Ministry of Commerce UNDP Partnerships for Private Sector Development

Assessing Dem and Assessing Supply Gap Analysis Recommendations Strategy

• Surveys
• Focus Groups
• Company Interviews
• Focus Groups

Ministry of Commerce UNDP Partnerships for Private Sector Development Surveys

• Three surveys: business,
• rganizational and individual.
• Surveys conducted by five teams

from the University of Kabul Economics Faculty

• Target cities were Kabul, Herat,

Kandahar, Mazar e Sharif, Jalalabad and Konduz.

• Over 1,000 business owners and

entrepreneurs were surveyed.

Ministry of Commerce UNDP Partnerships for Private Sector Development Focus Groups

• Focus groups held in all target

cities.

• Groups consisted of broad cross

section of businessmen and women taking into account gender, age and experience.

• Groups were facilitated by a

professor from Kabul University.

• Groups were designed to gain

maximum input.

Ministry of Commerce UNDP Partnerships for Private Sector Development Company Interviews

• Over 300 company owners

interviewed at their places of business.

• Allowed survey teams to see

business operations first hand.

• Created a low pressure environment

in which to gather information.

Ministry of Commerce UNDP Partnerships for Private Sector Development Research

• Entrepreneurship and Civic

Education Survey: CIPE drew on results from this survey to verify information collected in the field.

• AACC Business Attitude Survey:

Conducted in 2003. CIPE used this survey to verify information collected in the field.

Ministry of Commerce UNDP Partnerships for Private Sector Development

Assessing Demand Assessing Supply Gap Analysis Recommendations Strategy

• Surveys
• Organizational Visits

Ministry of Commerce UNDP Partnerships for Private Sector Development Surveys

• Survey 100 business development

services providers in Kabul, Herat, Kandahar, Mazar e Sharif and Konduz.

• Focused on types of business

development services, who was delivering the services, and who was funding them.

Ministry of Commerce UNDP Partnerships for Private Sector Development Surveys

• Survey teams visited organizations

and when possible reviewed materials and sat in on training programs.

• Selected bank presidents were also

interviewed to gauge the availability

• f credit for entrepreneurs and

small businesses.

Ministry of Commerce UNDP Partnerships for Private Sector Development

• Significant gap between supply of

business development services and the demand for the services.

• Feeling of frustration over lack of

follow up and practical application.

• Perception of lack of quality of some

BDS.

Assessing Demand Assessing Supply Gap Analysis Recommendations Strategy

Gap Analysis

Ministry of Commerce UNDP Partnerships for Private Sector Development Analyzing the Gaps

• A gap of 2 5 or less: either the market demand

was met or the expectations of the surveyed people were very low. It has to be taken into consideration the fact that the target respondents were not very knowledge with regard to their demand in terms of needed knowledge and skills in certain areas.

• A gap of 2 6 to 5 0 : the demand has been partly

satisfied, but there is still a significant gap in supply and demand.

• A gap of 5 0 or even m ore: shows that there was

no or very weak concern of addressing the demand, and the

• ffer

has to be either complemented with new programs or restructured in order to meet the clients training needs.

Ministry of Commerce UNDP Partnerships for Private Sector Development BDS Gap: Existing Business

Gap between the demand of the existing private entrepreneurs and the current offer of training providers

17.8% 14.0% 20.2% 13.2% 12.4% 61.2% 0.0% 0.0% 0.0% 38.8% 65.2% 35.8% 32.2% 57.9% 0.0% 0.0% 34.3% 27.9% 22.8% 10.2% 0% 10% 20% 30% 40% 50% 60% 70% Business Plan Development Customer Service Training Finance Marketing Merchandising Technical Skills Basic Business Principles Regulatory Information Strategic Planning Other

Share of suppliers offering the programme Share of existing private entrepreneurs demanding the programme

Ministry of Commerce UNDP Partnerships for Private Sector Development BDS Gap: Entrepreneurs

Gap between the demand of the future private entrepreneurs and the current offer of training providers

17.8% 14.0% 20.2% 13.2% 12.4% 61.2% 0.0% 0.0% 0.0% 38.8% 45.6% 14.5% 30.4% 33.2% 31.4% 14.1% 11.3% 11.7% 0% 10% 20% 30% 40% 50% 60% 70% Business Plan Development Customer Service Training Finance Marketing Merchandising Technical Skills Basic Business Principles Regulatory Information Strategic Planning Other

Share of suppliers offering the programme Share of future private entrepreneurs demanding the programme

Ministry of Commerce UNDP Partnerships for Private Sector Development

• Quality and strategic BDS must be

delivered to the provinces soon.

• Follow up must occur to make sure

business owners and entrepreneurs have the support network they need to succeed.

• Quality standards for BDS should be

demanded by donors.

• Access to credit for SMEs and start

up companies must be addressed.

Assessing Demand Assessing Supply Gap Analysis Recom m endations Strategy

What Did this Tell Us?

Ministry of Commerce UNDP Partnerships for Private Sector Development Recommendations

• Engage national business

associations in the process.

• Continue to update information

contained in the Training Needs Assessment (annually).

• Ensure that the PPSD is a demand-

driven process that has “ownership” in the private sector.

Ministry of Commerce UNDP Partnerships for Private Sector Development

• Create Business Advisory Centers to

provide strategic and quality BDS in Kabul and the provinces.

• Create one center in Kabul and

ramp up additional centers within the provinces within six-twelve months.

• Create a Business Development

Service Providers Association to create voluntary quality standards.

Assessing Demand Assessing Supply Gap Analysis Recommendations Strategy

Ministry of Commerce UNDP Partnerships for Private Sector Development Strategy

• Work with donor organizations to

promote a “seal of quality” for BDS providers.

• Create a Financial Institution

Consortium to consider qualified projects created with assistance from Business Advisory Centers.

Ministry of Commerce UNDP Partnerships for Private Sector Development Business Advisory Center Strategy

• Ensure that clients are linked to a

strategic process that includes technical assistance, practical application, and mentorship.

• Work with business associations

such as ACCI and AICC to oversee implementation.

• Contract with a strategic partner to

initiate services through the Business Advisory Centers.

• Focus on sustainability.

Ministry of Commerce UNDP Partnerships for Private Sector Development “We aren’t asking for much, just the chance to make a living and care for

• ur families”.

Businessman from Herat

Ministry of Commerce UNDP Partnerships for Private Sector Development The Center for International Private Enterprise

• Opened Afghanistan office in October

2003.

• Implementing a variety of programs

including a USAID cooperative agreement

• n business association development.
• Conducted the TNA study with assistance

from the University of Kabul Faculty of Economics.