Market Assessment

Angola Enterprise Programme BDS Market Assessment, UNDP/Chevron/GoA, 2006

    Description
    The objective of the BDS component is to provide appropriate facilitative interventions that will improve the sustainable provision of business development services to enterprises, thereby contributing to improved performance of the enterprises, which generates employment and improves income.

    The main constraint that the providers face is the fact that the market for BDS is still very 'green'. Operating in this very underdeveloped market implies that providers not only have to prove their own value, but also have to make the clients aware of the advantages of such services. Another major constraint the providers face is that most of their clients are operating at levels with little reserves, and clients weigh the return on investment between the services of the provider and other investments. This implies that providers must focus much more on the direct benefits of their services for that client, convincing clients that their investment pays off.

    There is hardly any statistical information about the size and performance of the enterprises but there are various indications that there are huge numbers of micro enterprises with relatively fewer numbers of medium enterprises, and a portion of that would be the 'business owners' that may be targeted by these providers. There are sufficient indications that small enterprises are seeking services and that they are willing to pay for these services, if these services will assist them in achieving better business results. Many enterprises do not know where to find these services, even though there are a number of existing providers that deliver a limited number of services to the enterprises.

    With a concentration of NGOs in the rural areas focussing on agriculture, most of the other providers are in more urban areas. Although an exact number cannot be given, it can be safely assumed that there are a number of providers that have their own market, and that any facilitation intervention should treat lightly in these markets. It is therefore recommended that a facilitator will assist the providers with:

    - further developing their existing services
    - improving their core services in terms of delivery modes
    - reaching out to other market segments with these core services
    - developing new services such as training and coaching
    - broadening their range of services
    - selling these new services to their existing and new client groups
    - marketing their (new) services to (new) market segments
    - technical advise in defining (marketing) strategies
    - financial assistance to test and initiate the marketing strategies

    Summary of results
    The facilitator will establish offices in Luanda and will announce the facilitation service, using various publicity and marketing tools. It is assumed that 5 providers will be selected per round. The combination of coaching (in order to analyse the market and further develop their core activity) and capacitating (the training and coaching tools) will ensure a hands on approach with direct results. This rather intensive initial period with almost daily contacts will last some three months, where after the coaching will continue for as long as needed, but at a lower level. The proposed implementation plan implies that the facilitators will be able to take 5 providers on board every three months. The facilitator will be an autonomous entity, consisting of two experts in BDS facilitation: one international expert (to bring in experiences from other countries) and one local expert (to bring in expertise from the Angolan industry).

    Impact will be primarily measured at providers' level, based upon the simplified assumption that if providers are able to sell their services to the enterprises, these enterprises will grow and as such will lead to increased employment and income. The monitoring will thus be as cost efficient as possible by measuring only a few yet decisive (proxy) indicators. A post-ante impact analysis will measure impact at providers and enterprise level, 12 months after ending of the (initial) 24 month programme.