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Performance Measurement Framework for Business Development Services

USAID Micro-enterprise Best Practices (MBP) Project – Field Research

OUTREACH AND MARKET DEVELOPMENT SURVEY REPORT

January, 2001

Chintha Munasinghe

Consultant – Support for Small Enterprise development SEEDS (Guarantee) Ltd. Sri Lanka and ITDG South Asia

A. Introduction

The Organization: SEEDS in Sri Lanka is one of a few leading rural micro-credit organizations in Sri Lanka, with a coverage of more than 3000 villages in 17 administrative districts. Launched in 1987 as the economic development program of Sarvodaya Shramadana Movement – the largest NGO in Sri Lanka – SEEDS today operates as a company affiliated to its mother organization.

Having learned the importance of BDS (Business Development Services) after 3 years of its operation as a micro-credit organization, SEEDS sort the support from ITDG to establish its BDS wing in 1990, with special focus on “Technology Interventions in the Small Enterprise sector”. Enterprise Services Division (ESD) of SEEDS is the end product of that collaborative effort. Today SEEDS’ BDS wing- the Enterprise Services Division – has a package of services to support SEEDS loan borrowers:

1. Technical Training – 23 training products supported by Business management Training and Advisory and Counselling services.

2. Information Production and Dissemination

3. Marketing Linkages

The Program: ESD of SEEDS is in a process of refining its “Beyond Credit” approaches to small enterprise development to improve its efficiency and effectiveness towards assuring sustainability. SEEDS Team engaged in this process felt the importance of participating in the BDS Performance Measurement Framework (PMF) Field research with the view to study its practicality as a monitoring tool while sharing SEEDS lessons as a BDS provider. The team was keen on finding ways to adopt PMF in their monitoring system, as they represent the category of BDS providers with social orientation combined with institutional performance targets towards sustainability. SEEDS genuinely believes that PMF will help them in taking management decisions in the process of “Making BDS (Credit –plus) approaches Cost-effective”.

SEEDS – Sri Lanka/ Draft

The field research under USAID MBP project concentrates on the “Technical Training Program” of the ESD of SEEDS. Presently the Technical Training unit of ESD is charging a fee from any client with the view to operate on cost-recovery basis, while engaged in provision of services to SEEDS clientele: Sarvodaya members supported by the Banking Division. They believe in cross-subsidization, (where part of the costs pertaining to poorer members will be borne by non-members who purchase services from SEEDS) as a measure to operate cost-effectively while achieving its development objective, and the service scheme they plan to implement is as below:

Client Economic Status Payment Scheme Sarvodaya Member Below poverty line Free Sarvodaya Member Above poverty line Subsidized Sarvodaya Member Non-poor/ Rich Cost-recovery basis Open market Below Poverty line Cost-plus basis

- They are allowed to obtain Sarvodaya membership for free services

Open market Above poverty line Cost-plus basis - They are allowed to

obtain Sarvodaya membership for subsidized services

Open market Non-poor/ Rich Cost-plus basis

Objectives of the Survey:

• To understand the potential for BDS offered by SEEDS in the open market as a measure to improve cost-effectiveness

• To develop marketing strategies for SEEDS BDS

Prior to setting up this BDS scheme, SEEDS require to study the potential market of BDS offered by SEEDS. SEEDS team recognizes “PMF Market Development Survey” as an ideal tool to serve this felt need. Focusing on the objectives of the survey, the team selected Harispattuwa DS Division in Kandy District as the location for the field survey, based on following criteria:

SEEDS operation – not so prominent Availability of diversified enterprises Availability of variety of BDS providers (competitors)

This report studies only 2 BDS programs of SEEDS : Technical Training and Business Management Training, which play a major role in the Enterprise Development Area of SEEDS. All the information presented in this study report confines to Harispattuwa DS Division.

January, 2001 Page 2


B. Results 1. The PMF Matrix:

1.1 Technical Training – Harispattuwa Divisional Secretariat Division

BDS Market Development Indicators Program Objective Indicators Market

Annual/ Status

Cumulative

Estimated Potential Market Size (number of SEs)

2016 N/A

Market Size: Number of SEs acquiring the service through any transaction type.

423 (21%)

40 (2%)

*

Market Size: Number of SEs purchasing the service

302 (15%)

40 (2%)

*

Market Size, supply: Amount of annual sales

$11,174/- Rs.882,746/-

$64/- Rs.5,085/-

*

Market Penetration: % of potential SE market acquiring the service

66% 13% N/A

Awareness: % of SEs aware of the service

60% 14% N/A

Expanding the Market for BDS

Reach - % of those aware who have purchased services at least once

25% 29% N/A

Number of BDS suppliers (Competitors) 6 1 N/A Number of service products 20 8 (23) Number and proportion of multiple-purchasers out of all purchasers (retention)

11 (73%)

2 (13%)

N/A

Satisfaction with last service purchase 3.7 3.6 N/A Average price paid for last service purchase

$37/- Rs.2,923/-

N/A N/A

Developing a high quality, diverse, competitive market

Average frequency of service purchase Every 2 years Once a year

N/A

Estimated Size of Potential Women-owned enterprise market

645 N/A

Number and % of SE customers purchasing BDS who represent women-owned enterprises

181 (9%)

20 (1%)

N/A

% of potential women-owned enterprises acquiring the service

323 (16%)

61 (3%)

N/A

Estimated Size of Potential Micro- enterprise market

1895

N/A

Number and % of SE customers purchasing BDS who represent micro- enterprises

302 (15%)

40 (2%)

% of potential micro-enterprises acquiring the service

1980 (66%)

390 (13%)

N/A

Estimated Size of Potential other under-served market Number and % of SE customers purchasing BDS who represent other under-served population

Deepening the market: reaching under-served groups

% of potential other under-served population enterprises acquiring the service

N/A

* It was found difficult to extract information DS Division-wise for the total period of program

existance, as training programs are organized district-wise.



1.2 Business Management Training - Harispattuwa Divisional Secretariat Division

BDS Market Development Indicators Program Objective Indicators Market

Annual/ Status

Cumulative

Estimated Potential Market Size (number of SEs)

2016 N/A

Market Size: Number of SEs acquiring the service through any transaction type.

302 (15%)

41 (2%)

*

Market Size: Number of SEs purchasing the service

121 (6%)

41 (2%)

41 (2%)

Market Size, supply: Amount of annual sales

$2659/- Rs.210,056/-

$52/- Rs.4,100/-

$52/- Rs.4,100/-

Market Penetration: % of potential SE market acquiring the service

32% 12% N/A

Awareness: % of SEs aware of the service

24% 14% N/A

Expanding the Market for BDS

Reach - % of those aware who have purchased services at least once

50% 43% N/A

Number of BDS suppliers (Competitors) 10 1 N/A Number of service products 6 4 (4) Number and proportion of multiple-purchasers out of all purchasers (retention)

5 (33%)

0 (0%)

N/A

Satisfaction with last service purchase 3.0 3.5 N/A Average price paid for last service purchase

$22/- Rs.1,736/-

N/A N/A

Developing a high quality, diverse, competitive market

Average frequency of service purchase Twice a year - N/A Estimated Size of Potential Women-owned enterprise market

645 N/A

Number and % of SE customers purchasing BDS who represent women-owned enterprises

61 (3%)

21 (1%)

N/A

% of potential women-owned enterprises acquiring the service

262 (13%)

121 (6%)

N/A

Estimated Size of Potential Micro- enterprise market

1895

N/A

Number and % of SE customers purchasing BDS who represent micro- enterprises

242 (12%)

41 (2%)

N/A

% of potential micro-enterprises acquiring the service

645 (32%)

242 (12%)

N/A

Estimated Size of Potential other under-served market Number and % of SE customers purchasing BDS who represent other under-served population

Deepening the market: reaching under-served groups

% of potential other under-served population enterprises acquiring the service

N/A

* It was found difficult to extract information DS Division-wise, for the total period of program existence as training programs are organized district-wise. The Business management training program start charging fees from 1999 onwards.



BDS Market Development Supplemental Indicators - General

I. Indicator: Sources of Information about services MARKET PROGRAM

SOURCE # Clients

% # Clients

%

1. Family / friends 36 46 2 15 2. Business partners / colleagues 15 19 - - 3. Business Associations 2 3 - - 4. Newspapers 9 12 - - 5. TV 1 1 - - 6. Radio 1 1 - - 7. Government Office 4 5 - - 8. Telephone Directory 0 0 - - 9. Society Meetings 8 10 12 85 10. Field Officers 1 1 - - 11. Commercial Banks 1 1 - -

II. Indicator: Reasons for purchase

FIRST TIME

LAST TIME

REASON #

Clients % #

Clients %

1. More expensive to get it done in house

- - - -

2. No in-house expertise/ skills 12 46 1 7 3. Business expanded 6 23 6 40 4. Competition in the environment 4 15 3 20 5. It is a legal requirement 1 4 5 33 6. Recommended by a friend 2 8 - - 7. It was the cheapest 1 4 - -

TOTAL 26 100 15 100

III. Indicator: Reasons for choice of supplier MARKET

REASON # Clients

%

1. They offer the cheapest service 2 7 2. Good reputation they have 10 31 3. The advertisement convinced me 2 7 4. Afriend/ family member recommended 2 7 5. They offered me a good service 7 23 6. It is the only supplier I know 3 9 7. It is close to my business 2 3 8. The supplier is a close friend 0 - 9. They buy my products 4 13 TOTAL 32



IV. Indicator: Reasons for non-purchase MARKET

REASON # Clients

%

1. I got it free 32 43 2. I do not need that service 7 9 3. It is too expensive - - 4. I do not know any supplier 1 1 5. They do not offer quality service - - 6. I get it done in-house - - 7. Lack of time 2 3 8. It was an on-the-job training 19 26 9. Knowledge transferred from my elders 6 8 10. No response given 7 9

TOTAL 74

2. Notes on the Indicators: 2.1 OBJECTIVE 1: Expanding the Market for BDS 2.1.1 Estimated Potential Market Size:

Please note that the PMF worked out in this report do not apply to all 17 administrative districts, thus covers only Harispattuwa DS Division which is a part of Kandy district.

The total number of families in the Harispattuwa DS Division is about 10,000 of which about 30% are engaged in business. This was also confirmed by the information received from that support micro- and small enterprise development in the survey area as below:

# enterprises registered under Divisional Secretariat 336 # unregistered enterprises received loans from SEEDS

240

# unregistered enterprises received loans from Kandu Rata Development Bank

400

# unregistered enterprises received loans from Samurdhi Programme

300

# unregistered enterprises received loans from Co-operative Rural Bank

540

# unregistered enterprises received loans from SANASA

200

TOTAL 2016

2.1.2 Market Size: Number of SEs acquiring the service through any transaction type

(Refer Annex A for details)

2.1.3 Market Size: Number of SEs purchasing the service




2.1.4 Market Size: Amount of Sales

Exchange rate used $1.00 = Rs.79.00

At Market Level: Calculating an average price found difficult in our case, unless we do it separately for each BDS product. Even then we found that the price range in the market is also varied:

BDS Product Market Price Range (Rs.) Food Technology Training 100 - 5000 Bridal Dressing Training 6700 - 1500 Jewellry Making Training 3000 Dress Making Training 100 – 5750 Hair Dressing Training 3500 Tailoring 300 – 7200 Business Management 100 – 15000

(CEFE – 450, 1000, 15000)

For the requirement of this survey, the average price was calculated using the information received for the Market Development Survey, as shown under Section 2.1.4 of Annex A.

At Programme Level: SEEDS has a computerized system to monitor revenue generation under ESD Finance Department, where all the income generated at Head Office level and at district level is being recorded under each district and each program. This system was introduced in 1998, and the data can be extracted for Kandy district, but not separately for Harispattuwa DS Division which is a part of Kandy district.

In the case of Harispattuwa DS Division, information was gathered from visiting manual filing systems. District Accountant - Kandy, found this task time-consuming, especially the process of cross-checking information available in the trainees lists with receipts. District team felt the importance of developing a computerized income recording system at district level for easy access of information to monitor SEEDS performance in marketing SEEDS BDS, as the PMF exercise will help district team to identify potential markets in the areas where SEEDS operation is not very prominent.

2.1.5 Market Penetration: % of potential SE market that has acquired the service through any transaction method ever


2.1.6 Awareness: % of SEs aware of the service


2.1.7 Reach: % of those aware who have purchased services at least once

(Refer Annex: A for details)



2.2 OBJECTIVE 2: Developing a high quality, diverse, competitive market SEEDS is not a BDS facilitator but a provider. Therefore, this objective is not applicable to SEEDS. Survey findings helped SEEDS to understand what other BDS providers are and the products available in the competitive market.

2.2.1 Number of BDS providers:

During the survey SEEDS was able to identify a range of competitors in the market as follows:

Category # Respondents acquired BDS

Competitors

Non-Government Organizations

30

Government Agencies 27 Individuals/ firms that provide BDS

7

Individuals/ firms that provide inputs

2

Individuals/ firms that sells products

0

Friends/ family 28 Former employers 19 Commercial Banks 1

The BDS providers confirmed by the respondents were as follows: 1. Center for Small Enterprise Promotion. 2. Provincial Enterprise Promotion Center 3. GTZ 4. Industrial Development Board 5. Agriculture Department 6. National Apprentice Board 7. National Youth Services Council 8. Vocational Training Center 9. Department of Small Industries 10. Seylan Bank 11. Thilani Peiris (Individual)

2.2.2 Number of Service Products:

Information provided here is based on the findings of the survey and is presented both at market level and at program level with the objective to “understand the status of SEEDS in the market”. The figure presented “within brackets” under the program refers to the number of service products that are offered by SEEDS. (Refer Annex A for list of service products acquired by the survey participants).

2.2.3 Retention (Market/Program):

All the 15 respondents who have purchased services have purchased them more than once, without adhering to one BDS provider or a service.

# RESPONDENTS SERVICE CATEGORY MARKET PROGRAM*

Technical training 11 55% 2 13% Business Management 5 25% 0 - Market Linkages 2 10% 0 - Information 1 5% 0 - Tax Documentation 1 5% 0 - TOTAL 20 100 2 13%

* SEEDS not being a BDS facilitator, the Program section of PMF under the section “Retention”, concentrates only on SEEDS services.

The 11 respondents who have purchased Technical Training stated that they had no in-house expertise/ skills at the time they bought the service for the first time.



2.2.4 Satisfaction:

The average satisfaction rating of 15 respondents who purchased the services as followed:

AVERAGE SATISFACTION RATING SERVICE MARKET PROGRAM Technical Training 3.7 3.3 Business Management Training 3.0 3.3 Market Linkages 3.0 - Tax Documentation 4.0 N/A

The average satisfaction rating of 95 respondents who participated at the impact survey is as followed. For Program level, data was taken from Impact survey results.:

AVERAGE SATISFACTION RATING SERVICE MARKET PROGRAM Technical Training - 3.6 Business Management Training - 3.5

2.2.5 Average price paid for the last service purchased:

Issues raised at Section 2.1.4 are applicable here as well, even though number of service products is less.

2.2.6 Average frequency of service purchase:

Average frequency was agreed on the category selected by the highest number of respondents


2.3 OBJECTIVE 3: Deepening the market: reaching under-served groups Extent of Under-served Market reached: Number and % of SE customers purchasing BDS who represent women-owned enterprises & Number and % of SE customers purchasing BDS who represent micro-enterprises

(Refer Annex A for details and Annex C for types of enterprises visited during the field survey.)



C. Analysis of Results The survey sample comprises 100 respondents of whom 32% were women, 60% were men and 8% represent joint ventures. Ninety four percent of them were micro-entrepreneurs. Only 14% of total respondents were aware of SEEDS.

1. Program Level Performance

The survey was limited to Harispattuwa DS Division, of Kandy district where there is a range of businesses and a number of BDS suppliers in operation. It was observed that most of the NGOo and GOo offer same types of BDS products while individuals and firms offer specific products that cater to the customer requirement. e.g. purchase of products, on-the-job training on technologies, technical training offered free to sub-contractors, tax related documentation, Input supply.

Outreach: With its package of services that are inter-linked and complementary to its credit program, SEEDS could play better in reaching the open market, than the present situation. For instance, only 15% of the total respondents were aware of SEEDS and its services and 85% of those who were aware of SEEDS, obtained information through Society Meetings, thus showing the potential of limiting SEEDS services to it membership. This might be due to in-efficient mechanisms in creating awareness or non-utilization of promotional mechanisms already available with SEEDS, such as village-level audio visual programs, Business Clinics, Information material or prioritizing only Sarvodaya members at district operations.

Present operational system of SEEDS more or less relies on their membership and the loan borrowers and not all the entrepreneurs are members of Sarvodaya. For instance, only 15% of the total entrepreneurs participated at the field survey were Sarvodaya members.

This was also valid in the case of under-served market.

SEEDS Enterprise Services Division’s objective is to increase opportunities for income and employment in small enterprise sector in Sri Lanka and 70% of Sarvodaya membership is women. Therefore, SEEDS has a special commitment to channel their services to women as well as micro-entrepreneurs.

Survey findings shows that, only 1% of women entrepreneurs and 4% micro-entrepreneurs are purchasing Technical Training Programs from SEEDS, which covers 11% of the market share in the case of women and 27% in the case of micro-entrepreneurs. In case of Business Development Training Programs, the market share for women was about 33% and for micro-entrepreneurs it is 50%.

• The data shows that, SEEDS has a potential to market their products, provided that an innovative but appropriate awareness creation program is developed to suit the requirements of each district.



• SEEDS should not limits its services to Sarvodaya membership if provision of services to its poor members on subsidized rates to be assured, at least for a year.

• SEEDS could further develop the quality of existing products based on the findings of the survey, that facilitate the retention of customers

12. Market Status

The survey also revealed that, 46% of the entrepreneurs were aware of the BDS through relatives and friends. It was also evident that 28% respondents obtained support from friends to start or improve their businesses while 19% stated that they obtained knowledge, experience and business ideas from the previous employment.

• According to the findings of the survey, the efforts made by Institutional BDS providers including SEEDS in creating awareness among potential clients is not satisfactory, thus providing an opportunity for SEEDS to accelerate its marketing efforts.

• It was observed that purchasing BDS is still not a common practice among under-served categories like women and micro enterprises in Sri Lanka, as there are island-wide poverty alleviation programs that offer free services to these categories.

• In general BDS still lies in a low-key area, compared to credit. Making people understand its value is not as easy as in the case of credit provision, where they finds immediate benefit – money where service charge is under the disguise of Interest Rate. According to the findings of the survey, 28% of the respondents had identified skilled friends as BDS providers, who helped them in improving their business on free of charge. It was also revealed that 31% decided on purchasing BDS based on the good reputation the supplier has, while 22% assess the services already provided to them, when deciding on approaching for the second time.

• There are also BDS providers still believe in welfare culture, where people were even given an allowance for their participation. The survey also revealed that 48% of the respondents have obtained BDS on free of charge.

• Another hidden category of BDS providers was the “former employers” where 19% of the survey respondents mentioned them as BDS providers, which is different from apprenticeships. This also shows that there is high proportion of entrepreneurs who utilize skills gained through employment.

• Customer satisfaction on SEEDS services is also at a satisfying level on an average of 3.6 in the case of Technical Training, where market rate was 3.7. In the case of Business Management training it was 3.5 which is above the market rate which is 3.0.

• Market performance on “purchasing of services against acquisition” based on survey data, found to be interesting:



TARGET CATEGORY Technical Training Business Training Total Population 15 : 21 6 : 15 Women entrepreneurs 9 : 16 3 : 13 Micro-entrepreneurs 15 : 66 12 : 32

There is a high potential of acquiring services by micro-entrepreneurs with no cost, compared to women and the total population. If awareness was taken into consideration:

TARGET CATEGORY Technical Training Business Training Total Population 60 24 Women 20

(33%) 11

(46%)

It is noted that 45% of women entrepreneurs who were aware of Technical Training have purchased compared to 25% of the respondents who were aware of the service. In the case of Business Management Training, 27% women who were aware have purchased while 25% of respondents who were aware, have purchased the service.

Why there is a high potential of women purchasing Technical Training? Is it because, family and friends in the provision of technology know how, do not support them? Is it because, women can be easily convinced by BDS suppliers while men are reluctant to believe in the capacity of the supplier? Does this a result of social conditioning?

It is important for SEEDS to understand this niche and capture opportunity – Make more women aware of technical training programs of SEEDS!

3. Interaction of the Program and the Market

Findings of the survey shows that awareness on SEEDS among the target population was not satisfactory (14%), compared to government agencies. Majority of the respondents acquired services from individuals on free while there are also agencies offering services free of charge, thus distorting the market where SEEDS and few BDS suppliers are operating. This environment is not complementary to those who market BDS products.

On the other hand, there are number repetitive customers who have purchased services due to reasons such as reputation of the BDS supplier, quality of service. Survey findings revealed that in the market there were 73% (Technical Training) and 33% (Business Management Training) multiple purchasers while in the case of SEEDS it is only 13% (Technical Training) and 0% (Business Management Training).

Considering the number of respondents who were aware of the service, outreach of SEEDS services (% of those aware who have purchased service at least once) can be compared with the market as below:

OUTREACH (%) UNDER-SERVED*

GENERAL WOMEN MEs

SERVICE

SEEDS MARKET SEEDS MARKET SEEDS MARKET Technical Training 29 25 20 40 29 24 Business Management Training 43 50 20 27 43 50



* Refer Section 2.3.2 of Annex A for calculations.

• Considering the staff capacity, availability of resources and commitments to its Credit and Savings Division, the market opened to ESD of SEEDS is big. At the same time, they are to compete with the other BDS providers of whom majority are still offering their services free.

• The key market strength of SEEDS is none other than offering of a package of inter-linked services to its clients. Provided that people were aware of SEEDS and its services, there is a potential for marketing its BDS. This was confirmed in the survey findings:

MARKET PROGRAM # Respondents purchased the service 15 4 # Respondents aware of the service 60 14 Reach 25% 29%

D. Assessment of Results

The results and analysis helped us understand the position of SEEDS in the open market. It also gave us an indication on the market size that SEEDS could reach in Harispattuwa DS Division. In addition we learned the process of working out PMF –Market development, which can be used by Enterprise Promotion Centers at the time of launching, thus helping Enterprise Promotion Officers to develop district master plans. Working out average price for technical training was not very convincing, as the price range was high in our case. Therefore, we found it is not a reasonable performance assessment tool for our program. It is important to know the market price for setting –up prices for us but not the amount of sales in the market. Number of BDS suppliers and providers operating in the market and the products they offer is an important information to know too.

E. Methodology – Description and Assessment

Program level records As SEEDS do not have computerized databases at district-level on DS divisional basis, we had to excavate manual recording system. This was a time consuming work especially, when cumulative (1990- 1999) records were required. We could not get cumulative data as expected. The most difficult part was the cross-checking of income information against the receipts. This can be rectified with the changing of SEEDS way of working towards an Enterprise Promotion Center concept, which will be in place from 2001. (SEEDS organize district-wise programs, where participants arrived from different DS divisions and the information was recorded under districts and not under DS divisions.) Impact Survey Results of the impact survey have been used in Customer Satisfaction section.



Market Survey

We had the limitations in conducting the survey in a short period therefore, we selected one DS division, even though knowing that SEEDS should concentrate on District wise survey, with a much larger sample. Our main objective was to study the process thoroughly, to study its practicality in applying to SEEDS requirements. We were also keen on finding out information gaps, in SEEDS present Management Information System, which is more focused on the requirements of its Banking division.

• Estimating the total potential market size - refer section 2.1.1 under Notes on indicators.

We had problems in estimating the size. We first, thought of relying on records at Divisional Secretariat on registered businesses. SEEDS primary target group is micro-entrepreneurs. Impact survey findings revealed that not all the businesses are registered. Therefore, in addition, we also used enterprise loan disbursement records of micro-credit programs including SEEDS. We cannot say that the estimate is accurate, as there might be a certain percentage of people have being repeated. But, did not have any other alternative.

• Survey preparation – It took about 7 days to develop, field test and agree on the survey questionnaire and translations; Half-a-day for orientation program for 7 enumerators supplied with 100 questionnaires and guide to survey.

Enumerators used in this survey are the members of Central Province Field Investigator Network of SEEDS. SEEDS have already developed an orientation program for potential field investigators throughout the island with the view to conduct BDS research for the refinement of SEEDS approaches. These trained field investigators can be used for PMF surveys as well.

• Survey conduct – Four days spent on data gathering due to isolated locations and the average time per interview was about 45 min.

• Data tabulation and processing – Data tabulation was done by one person and prepared in excel sheets, which took about 2 days.

• Data Analysis – Require more time to study data and analyze to provide recommendations as it contained a wide range of useful data that can be worked out in different combinations.

The survey involves following personnel:

Person Involvement Research Co-ordinator (Chintha)

At all stages of the survey (24 days)

Chief – Training Officer (Central Province)

Co-ordination of Field Investigators, ½ day orientation program, logistics on field survey (5 days)

District Training Officer * Enterprise Promotion Officer

position was vacant at the time

Information gathering – deciding potential market, selection of survey location and sample, field testing of the questionnaire,



Person Involvement conducting the survey with enumerators (7 days)

District Accountant Provision of program level data (2 days)

Enumerators Conducting the survey (4 days)

Research assistant Data Tabulation (2 days)

• Considering the time required for the total exercise and sample size which

should be larger than 100 to assure accuracy, we recommend that the survey to be conducted not more than every 2 years.

• We were not sure how accurate the average market price to compare with amount of annual sales at market level and program level, especially in the case of technical training, where the products are highly diverse. On the other hand, conducting market development surveys for each technical training product will be ideal, though not cost-effective.

• Table questionnaire found to be easy to fill, but sometimes enumerators could not keep to the track due to its comprehensive appearance. For, instance it was noticed later (even after the tabulation was completed), that even those who have not purchased the service responded to the question on satisfaction. We will revised the questionnaire in two parts – Part A (for those who acquired) and Part B (to be completed only by purchasers).



F. Annex A: Survey Data Tables and Graphs Ref: 2.1 OBJECTIVE 1: Expanding the Market for BDS

2.1.2 Market Size: Number of SEs acquiring the service through any transaction type

PROGRAMME TECHNICAL TRAINING MARKET (1999) 1999 Cumulative

No. of respondents acquired services 21 Total no. of respondents 100 % of respondents acquired services 21% Market Size 423

(21%*2016)

40 Program Records

Gathering data for the

period of 96 -99 found difficult

PROGRAMME BUSINESS MANAGEMENT

TRAINING MARKET

(1999) 1999 Cumulative No. of respondents acquired services 15 Total no. of respondents 100 % of respondents acquired services 15% Market Size 302

41 Program Records



2.1.3 Market Size: Number of SEs purchasing the service PROGRAMME TECHNICAL TRAINING MARKET

(1999) 1999 Cumulative No. of respondents purchased 15 Total no. of respondents 100 % of respondents purchased 15% Market Size 450

(15%*2016)

40 Program Records



PROGRAMME BUSINESS MANAGEMENT

TRAINING MARKET

(1999) 1999 Cumulative No. of respondents purchased 6 Total no. of respondents 100 % of respondents purchased 6% Market Size 121

41 Program Records

41* Program Records

* Charging fees for Business Management Training started in 1999.

2.1.4 Market Size: Amount of Sales

For the requirement of this survey, average price was calculated as follows:

Price # Purchasers Amt. of Sales TECHNICAL TRAINING

7,200.00 1 7,200.00 6,700.00 2 13,400.00 5,750.00 1 5,750.00 5,000.00 1 5,000.00 3,500.00 1 3,500.00



Price # Purchasers Amt. of Sales TECHNICAL TRAINING

3,000.00 1 3,000.00 2,500.00 1 2,500.00 1,500.00 2 3,000.00

200.00 2 400.00 100.00 3 100.00

TOTAL 15 43,850.00 Average Price (Rs.) 2,923.00 Average Price ($) 37.00

Amount of Annual Sales ($) 16,650.00 (450 * 37.00)

BDS Fee (Rs.) # Purchasers Amt. of Sales BUSINESS MANAGEMENT TRAINING

15,000.00 1 15,000.00 2,000.00 1 2,000.00

500.00 1 500.00 450.00 1 450.00 250.00 1 250.00 150.00 6 900.00

TOTAL 11 19,100.00 Average Price (Rs.) 1,736.00 Average Price ($) 22.00

Amount of Annual Sales ($) 3,960.00 (180*22.00)

2.1.5 Market Penetration: % of potential SE market that has acquired the service through any transaction method ever

TECHNICAL TRAINING MARKET PROGRAM # Respondents ever acquired services 66 13 Total # of respondents 100 100 % Potential SE market 66%

(66/100%) 13%

(13/100%)

BUSINESS MANAGEMENT TRAINING

MARKET PROGRAM

# Respondents ever acquired services 32 12 Total # of respondents 100 100 % Potential SE market 32% 12%

2.1.6 Awareness: % of SEs aware of the service TECHNICAL TRAINING MARKET PROGRAM

# Respondents aware of the service 60 14 Total # of respondents 100 100 % Potential SE market 60%

(60/100%) 14%

(14/100%)



BUSINESS MANAGEMENT TRAINING

MARKET PROGRAM

# Respondents aware of the service 24 14 Total # of respondents 100 100 % Potential SE market 24% 14% Reach: % of those aware who have purchased services at least once

TECHNICAL TRAINING MARKET PROGRAM # Respondents purchased the service 15 4 # Respondents aware of the service 60 14 Reach 25%

(15/60%) 29%

(4/14%)

BUSINESS MANAGEMENT SERVICE

MARKET PROGRAM

# Respondents purchased the service 12 6 # Respondents aware of the service 24 14 Reach 50% 43%

2.2 OBJECTIVE 2: Developing a high quality, diverse, competitive market 2.2.3 Retention (Market/Program):

# RESPONDENTS SERVICE CATEGORY MARKET PROGRAM*

Technical training 11 55% 2 13% Business Management 5 25% 0 - Market Linkages 2 10% 0 - Information 1 5% 0 - Tax Documentation 1 5% 0 - TOTAL 20 100 2 13%

2.2.6 Satisfaction:

CUSTOMER SATISFACTION – Based on Data gathered from Market Development Survey # Men-owned enterprises – 5 # Women-owned enterprises – 9 # Joint enterprises - 1 Total # Clients purchased services from SEEDS - 3 (20%)

Extremely Satisfied

Very Satisfied

Somewhat Satisfied

Not Satisfied

Average Rating

MARKET

# Rating # Rating # Rating # Rating Technical Training 5 20 2 6 0 0 0 0 3.7 Business Management Training

2 8 1 3 0 0 1 1 3.0

Market Linkages 0 0 3 9 0 0 0 0 3.0 Tax Documentation 1 4 0 0 0 0 0 0 4.0



Extremely Satisfied

Very Satisfied

Somewhat Satisfied

Not Satisfied Average Rating

PROGRAMME (SEEDS)

# Rating # Rating # Rating # Rating Technical Training 1 4 2 6 0 0 0 0 3.3 Business Management Training 1 4 2 6 0 0 0 0 3.3

CUSTOMER SATISFACTION – Based on Data gathered from Impact Survey

PROGRAMME

(SEEDS) Extremely Satisfied

Very Satisfied

Somewhat Satisfied

Not Satisfied Average Rating

# Rating # Rating # Rating # Rating Technical Training 28 112 13 39 2 4 0 0 3.6 Business Management Training 52 208 35 105 7 14 1 1 3.5

2.2.5 Average frequency of service purchase: KEY:

A - Once a month or more B - At least once every 3 months C - At least twice a year D - At least once a year E - At least every two years F - Less than once every 2 years

MARKET PROGRAM Average SERVICE CATEGORY A B C D E F A B C D E F Mkt Prog

Technical Training - 1 - 3 7 - - - - 2 - - E D Business Management - - 3 - 2 - - - - - - - C - Market Linkages - - 2 - - - - - - - - - C - Information 1 - - - - - - - - - - - A - Tax Documentation - - 1 - - - - - - - - - C -

2.3 OBJECTIVE 3: Deepening the market: reaching under-served groups 2.3.1 Extent of Under-served Market reached: Number and % of SE customers

purchasing BDS who represent women-owned enterprises MARKET PROGRAM TECHNICAL

TRAINING Acquisition Purchase Acquisition Purchase # respondents 100 # women entrepreneurs 16 9

20 Program Records

20 Program Records

Market Penetration 16% (16/100%)

9% (9/100%)

1% (20/2016%)

1% (20/2016%)

MARKET PROGRAM BUSINESS

MANAGEMENT TRAINING

Acquisition Purchase Acquisition Purchase

# respondents 100 # women entrepreneurs 13 3

21 Program Records

21 Program Records

Market Penetration 13% 3% 1% 1%



Extent of Under-served Market reached: Number and % of SE customers purchasing BDS who represent micro-enterprises

MARKET PROGRAM TECHNICAL TRAINING Acquisition Purchase Acquisition Purchase

# respondents 100 100 # micro-entrepreneurs 66 15

40 Program Records

40 Program Records

Market Penetration 66% (66/100%)

15% (15/100%)

2% (40/2016%)

2% (40/2016%)

MARKET PROGRAM BUSINESS

MANAGEMENT TRAINING

Acquisition Purchase Acquisition Purchase

# respondents 100 100 # micro-enterprises 32 12

41 Program Records

41 Program Records

Market Penetration 32% 12% 2% 2%

2.3.2 Outreach : % of those in the under-served category aware who have

purchased services at least once

WOMEN MEs TECHNICAL TRAINING SEEDS MARKET SEEDS MARKET # Respondents purchased the service 1 8 4 15 # Respondents aware of the service 5 20 14 61 Reach 20%

(1/5%) 40%

(1/8%) 29%

(4/14%) 24%

(15/61%)

WOMEN MEs BUSINESS MANAGEMENT TRAINING SEEDS MARKET SEEDS MARKET

# Respondents purchased the service 1 3 6 12 # Respondents aware of the service 5 11 14 24 Reach 20% 27% 43% 50%

G. Annex B: Survey Data in Excel

Will be sending as a separate file.

Survey Data: Types of Enterprises Surveyed

Sector Type of Enterprise Number Size Exercise Books Production 1 Micro Food Industry 19 Micro Garment Industry 12 Micro Joe Stick Production 6 Micro Handicraft 3 Micro Flower pots production 3 Micro Carpentry Workshops 8 Micro

Manufacturing

Medicinal Products 2 Micro



Sector Type of Enterprise Number Size Steel Products 5 Micro Envelopes Making 1 Micro Cigar Production 1 Micro Spices packaging 1 Micro

Shoe Manufacture 1 Micro Hardware Shop 2 Small Communications Service 1 Small Beauty Parlor 5 Small Grinding Mills 1 Small Book shop 1 Small Funeral Directors 1 Small Bridal Dressing 6 Micro Pre-school 1 Micro Retail shop 1 Micro Barber Saloon 4 Micro Tailoring 5 Micro Printing Press 1 Micro Tyre Changing Service 1 Micro Bicycle Repair 1 Micro Pharmacy 2 Micro Blacksmiths 1 Micro Photo Frames 1 Micro Studio 1 Micro Watch Repair 1 Micro

Service/ Trading

Building material 5 Micro Dairy Production 1 Micro Agriculture Mushroom cultivation 1 Micro

TOTAL 100

Survey data: BDS Products acquired by the survey respondents:

Service Category

Market Programme (SEEDS)

Technical Training

Food Technology Carpentry Light Engineering Bridal Dressing Screen Printing Tailoring/ Dress Making Beauty Culture Electrician Courses Joe stick production Flower pots production Welding Hair dressing Cycle repair Photo framing Photography Watch repair

Food Technology Welding Mushroom Cultivation Dress Making Exercise Books making Carpentry Envelope making Joe stick production (SEEDS offer 23 Technical Training products. During the survey there were 13 respondents who acquired 8 of them)



Service Category

Market Programme (SEEDS)

Block metal production Animal husbandry Mushroom cultivation

Business Management Training

Self-employment Entrepreneurship Small business management CEFE Personnel Management Tax Documentation

Self-employment Entrepreneurship Small business management CEFE

Business Advisory Service

One-to-one basis counselling Business Advisory days

Group counselling One-to-one basis counselling (SEEDS also provide following products which were not mentioned during the survey Business advisory days Business Clinics)

Market Linkages

Linking buyers and suppliers Introduction of new products

(SEEDS also provide following products which were not mentioned during the survey: Group marketing –

agricultural produce Market research Linking buyers and

suppliers Trade fairs)

Information Newspapers

(SEEDS provide following products in general, which were not mentioned during the survey: GEMMA magazine for

small entrepreneurs Leaflets and brochures Village level video

programs)


Documents

OUTREACH AND MARKET DEVELOPMENT SURVEY … Sri Lanka PMF-… · OUTREACH AND MARKET DEVELOPMENT SURVEY REPORT January, ... Rata Development Bank ... Calculating an average price found