| dc.description.abstract | This study was conducted with the objectives of firstly, determining the impact of
market development approach to BDS and secondly, to assess sustainability of BDS
market in the Maragua avocado market linkage project.
SMEs play significant role in employment and economic growth in Kenya. However,
their growth is hampered by a myriad of problems. Key among these problems is
inaccessibility of business development services SMEs. Over time, numerous projects
have been initiated in collaboration with donors and other non-governmental
organization to address this constraint.
The focus of the study was on all market players in the Maragua avocado market
linkages project. These were the SMEs, the service providers and the market
development facilitator. The study had two main objectives:-
To determine the impact of the market development approach to BDS on the Maragua
Avocado market linkage project.
To assess sustainability of the BDS market in the Maragua Avocado market linkage
project. Earlier studies have shown that only a small percentage of SMEs have had access to
any business development services. Even though the amount of donor and government
funds channeled into the sector has continued to grow, the number of SMEs having
access to these services remains dismal. Additionally, an earlier study found that the
business development services offered by the markets are not perceived to be relevant
by SMEs operating in those markets. The study therefore sought to find out the impact
the new market development approach to BDS was having on both the market and
SMEs in the maragua avocado market linkage project where it was being applied.
A sample of 121 respondents identified for the study. Primary data was collected
interviews guided by a structured questionnaire. The data obtained was then coded and
tabulated in the form of frequencies and percentages. These descriptive statistics were
used to analyze the objectives.
The study results revealed a positive trend on all the five variables used to measure the
impact of the market development approach on business development services. The
market development approach to business development services was found to have had
significant impact on the market and the SMEs it served. The approach had made the
BDS market more transactional based through expansion of awareness, acquisitions and
purchases of BDS by SMEs.
Additionally, the approach had expanded the market as indicated by growth in
purchases of BDS among SMEs. Further, the market had gained diversity and competitiveness through expanded number of services providers and the market BDS
offering. Moreover, the quality and relevance of BDS offering by the market was found
to have improved tremendously as shown by the high rate of multiple purchases.
Finally, the study noted that the approach had deepened the market to reach micro and
female managed enterprises, segments hitherto undeserved.
With respect to the second study objective, the study results indicated that market had
become more transactional. The study found that the market was providing access to
desired business development services in the avocado export business through
unsubsidized commercial channels. This finding anchored the positive prospect of a
competitive and sustainable BDS market. This was indicated by the improvements
numbers of service providers, significance of revenues generated by service providers
from serving SMEs and market cost effectiveness in delivery of BDS through growing
numbers of SMEs served by the market.
The study concluded that the market development approach to business development
service was the best approach in developing business development services markets
from which SMEs could access the services transactionally. | en |
