Modeling Business Development Services (BDS) in the Tanzania SMEs Market: Theoretical and Conceptual Framework Issues

Abstract

The paper aims at proposing a model leading to finding out the determinants of successful provision of useful business development services (BDS) in Tanzania’s SMEs market. To this end, the paper specifically aims to; first, examine the extent to which BDS demand side factors affect the successful provision of useful BDS. On this the study hypothesized that there are some special services that SMEs require for their development and growth. These include services that will guide them to innovations, customer satisfaction, business strategies and awareness. The second objective is to examine the extent to which BDS supply-side factors influence the successful provision of BDS. Here, the study hypothesized that factors on the supply-side (i.e., creativity and innovation of services), improve their BDS business strategies and develop a high class capacity of their BDS experts. The third objective is to examine the extent to which government supports to BDSPs influences successful provision of useful BDS. It is recommended that BDSPs must provide services that are of great need to SMEs (demand driven factors), and they must be creative and innovative enough to bring changes and provide solutions that will assist the growth and development of the SMEs sector (supply side). Finally, the government has a role to play on business formalization, access to finance and regulatory framework.