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New market economies often offer few business development services
and are poorly equipped to support the needs of emerging micro and
small enterprises. To assist micro and small enterprises (MSEs)
succeed in these environments, business centres and other advisory
mechanisms must provide appropriate, targeted services. These
services should fit the unique needs of MSE owners and strengthen
entrepreneurial, managerial and technical skills. Despite the
clear need for business advisory mechanisms, in most nascent market
economies, MSE-targeted advisory services are not in high demand
because: (i) entrepreneurs have no experience accessing expert advice
and thus do not understand its benefits; or (ii) MSE owners cannot
afford to pay for business consultancy services.
The establishment of a Business Consultancy Fund can overcome these
barriers and support the growth of responsive business advisory
services. Ideally, the establishment of the Business Consultancy
Fund (BCF, or Fund) will encourage improved service delivery by
business service providers to business people and entrepreneurs.
Improved business consultations and counselling should facilitate and
promote the growth of a viable and productive MSE sector in the project
region, which, in turn, will increase employment and income.
Though a variety of institutional models can be used, in countries
transitioning to market economies, BCFs are most often established
separate and apart from governmental departments. In this case,
the BCF does not hold the same legal status as a governmental entity
and does not hold state registration, but is rather a voluntary
instrument established by development organizations. The Fund is
regulated by a set of bylaws or “BCF Regulations” and other documents
approved by the relevant parties.
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