Business Development Service (BDS) Role in Improving the Performance of SMEs in Case of Selected Manufacturing SMEs in Adama Town, Ethiopia

Abstract

Business development services as one mechanism of enterprises development have been thought of as a wide array of non-financial services designed to help small and micro enterprises to overcome barriers and increase their profitability and contribution to job opportunity creation by improving their performance. This study assessed the role of BDS in improving the performance of small and micro enterprises by focusing on enterprises engaged in the manufacturing sector of wood, metal and mortar work subsectors in the town. The finding of the research shows that Business Development Service plays a key role in improving the performance of the enterprises. The ANOVA test result reveals that the role of BDS in contributing towards employment opportunity creation, enterprise growth and expansion, and technology transfer is found to be moderate. The findings of the study also show absence of statistically significant difference among the views of target respondents towards the role of BDS in improving the performance of SMEs. Based on the findings, the study recommends that despite the fact that there are some BDS currently delivered to the enterprises, other important aspects of BDS be included in the package for better performance of SMEs.

Keywords: Business Development Service, Small and Micro Enterprises.