Beyond credit – the emergence of high-impact, cost-effective business development services
In recent years, donor funding for small producer support projects has been slanted heavily in favour of microcredit, where credit is the only form of support offered. An important reason for this has been a belief that non-financial services (or business development services, BDS,as they have now come to be called) can generally neither achieve a large scale of impact nor be delivered cost effectively. Two important developments in recent years demonstrate the need for a return to a more balanced approach, with an enhanced role for BDS. First, recent evidence suggests
that there are serious limitations to the developmental impact of such credit, delivered without business and technical advice. Second, some innovations in the design and delivery of BDS projects indicate that these can be made more cost-effective and have greater impact than has until now
been thought possible.
as they have now come to be called) can generally neither achieve a large scale of impact nor be delivered cost effectively. Two important developments in recent years demonstrate the need for a return to a more balanced approach, with an enhanced role for BDS. First, recent evidence suggests
that there are serious limitations to the developmental impact of such credit, delivered without business and technical advice. Second, some innovations in the design and delivery of BDS projects indicate that these can be made more cost-effective and have greater impact than has until now
been thought possible.
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