Business Development Services (BDS) for SMEs: This is designed to strengthen SMEs' access to BDS, to facilitate designing & implementing strategies to foster BDS market development, strengthening BDS in select 25-30 SME clusters and develop them as "Role Models", with a strong demonstration effect. It is understood that in clusters there is deficiencies in BDS supply; either BDS services are not appropriate for the type of SMEs or they are not cost-effective, or not ‘packaged’ or delivered in the desired manner.

This type of deficiencies in both demand and supply has to be addressed by either transaction subsidies or specific interventions, like sensitisation, product development and capacity building for BDS providers. The BDS sub-component of the TA package [d] is to be operationalised in 25-30 clusters / sub-sectors

The BDS intervention under the programme shall focus on:

• Building the capacity of existing and potential BDS providers and financial institutions (lead banks) within each of the selected clusters and subsectors to serve the SME market more effectively;

• Facilitating networking between SME business associations and other BDS providers and similar associations in other countries;

• Developing linkage programs between large corporations and SMEs, working through the major SME business associations;

• Developing high quality, affordable management training for local SMEs;

• Entrepreneurship training programs to create new entrepreneurs;

• Providing SMEs with better access to technology, for example, through technology transfer agents/supporting dedicated institutions to facilitate dissemination of information on technology transfer and match-making.