Unlocking Potential: The Transformative Role of Digital Business Development Services for Micro Enterprises in Developing Countries

Part 3/3 – How to Unlock the Potential (The Commercial Reality)

In the first part of the series, I discussed the broken promise between MFIs and microentrepreneurs. In the second part, I explained how digital BDS could fill the gap by providing cost-effective solutions at scale. This last part is considering the commercial model. Considerations to ensure financial sustainability include the following:

  1. Business planning – How will you fund development? What are the timelines for commercial viability? Do you have the right team in place? What KPIs will you set and how will you measure them?
  2. Project management – What will the “handover” from development to commercial operations look like? Who is the project manager and project sponsor? Do you need a steering committee?
  3. Target market and audience – Who is the target market? Is there more than one target audience? Do you have more than one route to market? Have you done a segmentation exercise? What are the specific needs and pain points of your target audience?
  4. Value proposition – What unique value does your platform offer? How does it differentiate itself from competitors? How does your service solve specific problems or challenges for your partners or clients?
  5. Partnerships and collaborations – Who are potential partners? What is your value proposition to them and vice versa? Where is the mutual benefit? Will you use an equity, commission or revenue sharing model?
  6. Cost Benefit Analysis – What is the cost vs benefit for the partner/client? Can you develop a business case to show what a pilot/rollout would look like?
  7. Monetization strategy – What is your pricing model? Is a freemium strategy applicable? If yes, what benefit will giving free services bring you? Will you follow a subscription-based, usage-based, project-based or a hybrid pricing model? Is there tiered / volume-based pricing? How will you get repeat sales? Can you bundle services?
  8. Marketing – What is your customer acquisition and retention strategy? What marketing channels will you use? What is your go to market strategy? Do you have a marketing and communications plan? 
  9. User Experience (UX) and User Interface (UI) design – How will you ensure a seamless and intuitive user experience? What features or functionalities are crucial? How will you do user testing? What is your plan for feedback and improvement? Will you use Human Centred Design (HCD) and prototyping principles?
  10. Technology infrastructure – What hardware and software will you use? How can you ensure scalability, security and reliability? How will you implement upgrades and updates?
  11. Regulatory compliance – What legal and regulatory considerations need to be addressed? How will you ensure data privacy and compliance? What are the potential risks and how can you mitigate them?

Now that you have read the blog series, what can you do to make meaningful change? 

  1. Read the white paper https://thesmefriend.com/insights/
  2. Advocate for Adoption – Champion the adoption of digital BDS within your industry and networks. Keep an eye out for opportunities to simplify, digitize, and make business and finance accessible.
  3. Collaborate for Impact – Collaborate with corporates, government, FSPs and educational organizations to amplify reach and impact.
  4. Pilot programs – Pilot digital BDS focused on micro-entrepreneurs to demonstrate the tangible benefits. Document success stories to inspire confidence and encourage wider adoption.
  5. Subscribe to the SME Friend – to receive updates and find out about partnership opportunities.

In conclusion, if the technical, functional and commercial challenges can be resolved, digital BDS holds immense potential in unlocking opportunities for micro-entrepreneurs and MFIs. By taking decisive action and leveraging the power of digital, we can collectively contribute to a paradigm shift in empowering micro-businesses.

#microentrepreneur #digital #businessdevelopmentservices #sustainablegrowth #transformation