Ethiopian Enterprise Development

Small and Medium Enterprise Finance Project (SMEFP)

Terms of Reference for the Recruitment of Business Development Services (BDS)

Provider
The Assignment Consultancy Services to Provide Business Development Services
and Technical Support to Small and Medium Enterprises and major
Stakeholders in Ethiopia for the SMEFP.

Project Name Small and Medium Enterprises Finance Project (SMEFP)

Development Partner World Bank

Implementing Agency Ministry of Industry (MoI)/ Represented by the Ethiopian

Enterprise Development (EED)

Time frame of the Assignment July 2023 – July 2025

Background Information on the SMEFP

The government of Ethiopia, in its effort to accelerate the development of the industrial sector,
has given due consideration to the enhancement of the Small and Medium Enterprises (SMEs)
sector in the two GTP Phases (GTP I 2010 to 2015 And GTP II 2016-2020), which emphasizes
the key role of the Sector for the country’s economic development. It also highlights the
promotion of financial inclusion as a main priority in the development agenda to address the
constraints facing the sector and make it contribute for the national economic growth and
poverty reduction.

It is ascertained that lack of:

 Knowledge of business development and management,

 Technical skill,
 Proper Business/ Strategic Plan,
 Marketing skills; has negatively impacted the growth and development of the SME
Sector.

Business Development Services (Business management and technical skill competencies)

provide enterprises the expertise and tools to manage their business and enable them to grow,
compete in the market and witness sustainable growth.

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However, SMEs are less likely to obtain BDS services than larger firms due to financial
constraints, lack of awareness of the value of the services (like training, etc.), information gaps,
lack of time, lack of trust on the services’ providers and other factors. Above all, when the
business grows and business management (specifically the components related to HR,
Financial Management, Marketing) is lacking, then the business is likely to fail.

Moreover, studies have shown that there is no uniformity and proper guideline in regard to
BDS provision, thereby lacking standard/ quality of BDS provision.

In due consideration of the problems stated above, the Small and Medium Enterprises Finance
Project, under implementation for the last 6 years (August 2017 – August 2022), was established
with the support of the World Bank/IDA and with certain intervention of external financing
from EU. The project is comprised of four components. Component 1. Financial Services to
SMEs; Component 2. Enabling Environment of SME Finance; Component 3. Business
Development Services (BDS) to SMEs and component 4. Project Management, Communication
and Impact Evaluation.

The main objective of this financing project is to increase access to finance for Eligible Small
and Medium Enterprises and addressing bankability constraints of SMEs through provision
of technical assistance, especially on Business Development Services.

Currently, in response to the impact of COVID-19 on the growth/ development of SMEs and
with the objective of broadening the scope of the project, Additional Financing (AF) for SMEFP
was approved to extend the duration of the project up to August 2025.

The Component 3 - BDS provision to SMEs - under the scope of the Project is given proper
consideration and the services are diversified, structured on the following sub-components;

 Sub-component 3.1. focuses mainly on firm capability building through;

 Tailored Business Advice/counseling,
 Technical trainings on new product development, production efficiency and
technology adoption,
 Sub-component 3.2. Increasing access to market through;
 Supporting participating SMEs in the value chain on business matchmaking to
enable a long-term business-to-business relationship with selected
international buyers or local suppliers of inputs.
 Providing access to business information to all SMEs and their
international/local buyers in Ethiopia, through a business Information Center
(BIC) to be established at the Ethiopian Enterprise development,
 Building the capacities of federal and regional investment and trade support
institutions, export promotion agencies, and business diplomacy, the program

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 will enable the government to provide better services to SMEs in the targeted
sectors.
 Sub-component 3.3: Broaden access to market through digital solutions
 This sub-component establishes an e-commerce platform that broadens access
to markets for beneficiary SMEs.
 The e-commerce platform will support SMEs to increase their market
opportunities through digital means.
 The products that are transacted on the e-commerce platform can be
physically distributed using the networks of Ethiopian Posta Service (EPS)
which already has huge network of branches in Ethiopia – expanding market
access for SMEs by enhancing volume and quality through a low marginal cost.

To this end the Ethiopian Enterprise Development (EED)/ the Project Implementation Unit
(PIU) of the SMEFP seeks to contract/ engage an International consultant to provide Business
Development Services in setting-up of Sustainable BDS landscape in Ethiopia, as specified
below.

1. Objectives of the assignment

The Overall objective of this assignment is enhancement of the Competencies, performance

and competitiveness of the SMEs. Specific objectives include:

 To assist in the development of performance and productivity of participating firms

through;
- Tailor made business management and entrepreneurship, marketing strategy,
bankable business plan preparation, financial accounting, risk management, human
resource management, tailored digital tools for business (such as record keeping,
online presence, accounting …etc), financial analysis, etc. trainings,
 To enhance technology adoption capacity of SMEs which develops their
competitiveness and facilitate transformational growth of SMEs,
 To train SMEs on new product development,
 To increase access to international / local markets through;
- Business matchmaking and facilitating long term business-to-business linkages,
- Systematic collection and compilation of SME data for the Business Information
Center (BIC),
- Use of e-commerce marketplace and digital marketing
 To draw best practices/ lessons from International experiences in regard to BDS
provision,

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  To support in the establishment of Network of BDS Providers and ultimately create
sustainable BDS landscape in Ethiopia,
 To produce proper country level guideline and manuals to support uniform, Standard,
/ quality Business Development Services (BDS) provision in Ethiopia,
 To transfer international practices that support the development of SMEs in Ethiopia,
 To facilitate Exposure visit for capable project beneficiary SMEs,
 To build capacity of Federal and regional investment and trade support institutions,
export promotion agencies and business diplomacy , so that they are able to provide
better services to SMEs,
 Set standard and procedures for exportable products so that Enterprises are aware of
International requirements for the export product.

2. Scope of work
The consultant is expected to perform the following activities and more as they prevail and
deemed important.
2.1. Undertake desk research and scoping visits to understand the situation on the
ground, including assessment of rules and regulations that have impact on the
SMEs in general and the BDS provision in particular, and present it to the EED
management
2.2. In order to understand the situation on the ground and support the Impact
assessment at a later stage, the Consultant shall make baseline assessment,
2.3. The consultant, PIU and EED should agree target regions, cities, zones, woredas
and kebeles for the delivery of the BDS support,
2.4. In order to determine the BDS needs/areas of training and other supports of the
Enterprises, the Consultant shall undertake quick need assessment and organize
the expressed needs in terms of the approached enterprises (indicating their
growth level – Small/ Medium), and validate the needs with EED management
2.5. Identify all the elements (types/areas) of Business Management skill
components (prevalent to country situation) and prepare training packages and
modules in collaboration with the other BDS providers,
2.6. Assess the digital awareness and capacity of SMEs and develop training manuals
and guidelines for the use of e-commerce marketplaces, including but not
limited to preparing product profiles, uploading product details on marketplaces,
monitoring feedback and digital marketing,
2.7. Incorporate international best practices in training manual & modules, and in
consultation with the existing BDS providers (IDIs, EDC and Polytechnic Colleges
and others from the private sector), incorporate best practices for the current
assignment, designing and provision of BDS (Business Management training,

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 digital skills, digital marketing, entrepreneurship, business consulting/coaching/
mentoring, Value chain management), to SMEs,
2.8. In collaboration with EED and the PIU, the consultant shall provide capacity
building training to Federal and regional investment and trade support
institutions, export promotion agencies and business diplomacy , so that they
are able to provide better services to SMEs,

2.9. In collaboration with PIU the consultant shall assist in identifying potential BDS
providers for outsourcing trainings to SMEs,
2.10. Assess the status of the BDS Providers (government/private and other forms)
and work on/ support the establishment of “Network of BDS Providers in
Ethiopia”,

2.11. In collaboration with EED, SMEFP and the Network of BDS Providers shall
prepare Guidelines, training Manuals and Modules and directives that lay the
foundation for a proper and sustainable BDS landscape in Ethiopia,

2.12. In collaboration with the SMEFP Project Implementation Unit (PIU), as well as
the Regional and woreda SME Development Bureaus/ Agencies/ offices,
advertise and market the elements/ benefits of the Project, BDS to SMES and
potential clients,

2.13. In collaboration with EED, Ministry of Foreign Affairs (MoFA) and SMEFP, the
consultant shall identify countries and arrange exposure visit for 60 (Sixty)
participating and capable SMEs and identify host SMEs in host countries,

2.14. Provide monthly/quarterly/bi-annual and annual reports, including at minimum;

 List of each client approached to participate in BDS,
 Whether they participated, completed, and the date they participated,
 Gender and growth level (Small Scale or Medium Scale) aggregated,
 Challenges faced in the course of BDS service provision, means utilized to
mitigate those.

2.15. Provide high-quality Business Development Services/ trainings to at least 400

SMEs across major cities in Ethiopia,

2.16. Organize the information/ profile of the SMEs which are provided with the BDS
Services as per the format to be provided by the PIU.

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3. Methodology

 Draw up a plan of detailed action and timetable for accomplishing the various
components of the consultancy,

 Utilize the potential and infrastructure/ facility of the SME promotion offices at
all level to access first-hand information on the SMEs and assessing needs and
screening of SMEFP eligible SMEs,

 Coordinate with other existing BDS providers and other support services for
SMEs, like the Entrepreneurship Development Center (EDC-Ethiopia), Industry
Development Institutes (IDIs), Polytechnic Colleges and development partners
supported programs,

 Conduct meetings with the PIU, concerned coordinator and other concerned
parties to discuss on how to;
- Assess the status of BDs providers, especially Private BDS providers,
- Undertake the need assessment,
- Screen service recipient SMEs,
- Categorize BDS services as per the BDS service providers (which shall be
given by the International BDS Provider(s), which shall be given by the
existing BDS Providers and which ones shall be outsourced),
- Pull international expertise in the area of technological support (product
development, e-commerce, digital marketing, innovation, productivity
enhancement, etc.),
 Pilot test the training modules and tools,

 Discuss and support other BDS providers in designing/ organizing the training in
the way that it includes case studies, formal presentations, hands-on experience,
participant presentations and dynamic discussions,

 Arrange local site visits to successful firms (these can be for e.g. those that have
organized research and development units, innovative, employee training and
empowerment, and others as deemed educative)

 Organize best practices gained in order to utilize the information as an input in

the planning of same/ future project,

 Medium of communication is English

4. Deliverables

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  Inception report including work program, detailing the training schedule, approach/
the training methodology and tools for the BDS service delivery, extending to the
culmination of the contract period and facilitate discussion on it by organizing
inception workshop, so that common understanding on methodology, expectations
and deliverables is reached,
 Report on the baseline survey and (short) BDS Need Assessment of the SMEs,
 Agreed target areas for the provision of the BDS Services,
 Training Packages, Manuals and modules on the identified fields, both for the Hard
and Soft Skill,
 Mapping of the Business Development Services’ providers in general and for
outsourcing in particular, detailing:
- Area of expertise and accreditation status,
- Vocational topics and manuals used,
- Type of services offered to SMEs,
- Training Delivery, Monitoring and Follow Up Tools, etc.
 organized/set-up “Network of BDS Providers in Ethiopia”,
 Guidelines, Training manuals and modules that support the creation of sustainable
BDS landscape in Ethiopia,
 Provide capacity building training for 50 people from those institutions supporting
the export market,
 Provide/ Support the provision of Business Management, digital and Technical Skill
training to at least 400 Small and Medium Enterprises based on the expressed
training needs and as per the agreed modules/ curriculums/ manuals in all the
identified training areas,
 Periodic report (monthly, quarterly & yearly) on the execution of the training
program including challenging problems,
 Pre (their expectations) and post training (level of satisfaction) feedback taken from
all trainees.
 Post -training evaluation,
 Produce Comprehensive final report on the Business Development Services (BDS)
delivery, focusing mainly on:
- Problems confronted and means utilized to mitigate these,
- Lessons to be drawn from the process,
- Profile of participants and their feed-backs,
- Means /ways of sustaining Business Development Services (BDS) in the future,
- Experience sharing visit to 60 (Sixty) participants,
Sr.Nr. Deliverables Time line Remarks

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 Year 1 Year 2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1. Inception Report discussed
by Inception Workshop
2. Report on the baseline
survey and (short) BDS
Need Assessment of the
SMEs,
3. Agreed areas for the BDS
Provision
4. Training Packages, Manuals
and modules as per the
identified training areas,
5. Identified BDS Providers,
particularly for outsourcing,
as per the agreed details,
6. organized/set-up “Network
of BDS Providers in
Ethiopia”,
7. Guidelines, Training
manuals and modules to
support the creation of
sustainable BDS landscape
in Ethiopia,
8. Provide capacity building
training for 50 people
supporting the export
market,
9. Provide BDS Trainings as 50 50 100 100 50 50
per the identified needs to SMEs SMEs SMEs SMEs SMEs SMEs
at least 400 Small and
Medium Enterprises
10. Periodic Reports (monthly,
Quarterly and Annually)
11. Pre (their expectations) and
post training (level of
satisfaction) feedback taken
from all trainees.
12. Post training evaluation
13. Comprehensive final report on
the Business Development
Services (BDS) delivery as per
agreed parameters,
Timeline of deliverables

5. Time frame
This assignment is expected to begin fifteen (15) days after the contract signing. The
contract shall be for two (2) years.
6. Qualification and experience requirements
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 An adequately qualified and staffed team, consisting of a Team Leader and professional
staff with a total of seven (7) Manpower, all equipped with post-graduate or equivalent
qualification (as detailed below) is required to undertake the task.

Sr. Title Qualification Experience

Nr.
1. Team Leader Masters or above in - At least 8 years of experience out of which 4 years in developing and
Business Management, implementing training programs and managing related projects,
Marketing, Economics, - Experience in the region,
Education or related - Knowledge and experience in conducting need assessments and
fields, developing training modules/ curriculum, training materials etc.
- A thorough understanding/ knowledge of the SME sector, in Ethiopia
and of SME issues internationally,
- Experience in International markets,
- A good understanding of e-commerce and digital marketing,
- Knowledge in the area of technical skill training, technology adaptation
and transfer, and capability in transferring international experiences in
the area under discussion,
- Excellent report writing and communication skills in English,
- substantial knowledge of Entrepreneurship and Business Development
Services
2. 3 Experts in the Masters or above in:- - At least 7 years of experience, in the area of SME training,
area of  Business - Experience in the region,
Entrepreneursh Management (1) - A thorough understanding/ knowledge of the SME sector, in Ethiopia
ip and Business and of SME issues internationally,
management - Knowledge and experience in conducting need assessments and wide
experience in developing training modules/ curriculum, training
materials etc.
- Experience in BDS consultancy and mentoring,
- Substantial knowledge and experience in delivery of training in Business
Management.

 Marketing (1) - At least 7 years of experience, in the area of SME training,

- Experience in the region,
- A thorough understanding/ knowledge of the SME sector, in Ethiopia
and of SME issues internationally,
- Knowledge and experience in conducting need assessments and wide
experience in developing training modules/ curriculum, training
materials etc.
- Experience in BDS consultancy and mentoring,
- Experience in International markets and
- a good understanding of e-commerce and digital marketing,
- Substantial knowledge and experience in market search and delivery of
training in in the area of

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  Entrepreneurship
(1),
Masters or above in
Textile/ garment /
Engineering/ Leather
Technology
 Textile/ Garment
Leather Production
- At least 7 years of experience, in the area of SME training,
- Experience in the region,
- A thorough understanding/ knowledge of the SME sector, in Ethiopia
and of SME issues internationally,
- Knowledge and experience in conducting need assessments and wide
experience in developing training modules/ curriculum, training
materials etc.
- Experience in BDS consultancy and mentoring,
- Substantial knowledge and experience in delivery of training in
Entrepreneurship and undertake coaching and mentoring
- At least 7 years of experience, in the area of SME training,
- Experience in the region,
- Knowledge and experience in conducting need assessments and wide
experience in developing training modules/ curriculum, training
materials etc.
- Substantial knowledge and experience in market search and delivery of
training in in the area of Textile/ Garment & Leather Production.

3. 3 experts in the
area of - At least 7 years of experience, in the area of SME training,
Technical skill - Experience in the region,
training Masters or above in
Mechanical/ Industrial
- Knowledge and experience in conducting need assessments and wide
Engineering/ experience in developing training modules/ curriculum, training
Manufacturing materials etc.
Technology - Substantial knowledge and experience in market search and delivery of
 Metal and Wood training in in the area of Metal and Wood Technology and related
Technology Software.
- At least 7 years of experience, in the area of SME training,
Masters or above in
- Experience in the region,
Agri-business, Food
Science, Food - Knowledge and experience in conducting need assessments and wide
Engineering experience in developing training modules/ curriculum, training
materials etc.
 Agro- - Substantial knowledge and experience in market search and delivery of
processing training in in the area of Agro-processing.

 Demonstrated experience working in a team, exerting effort to meet schedules,

 A good understanding of e-commerce, digital marketing and international BDS
provision,
 Evidence of ability to provide high quality BDS to a comparable volume of SMEs in
Ethiopia/Africa.,
 Excellent report writing and communication skills in English,
 Partnerships with Local identical firms are encouraged,
 Demonstrated experiences and skills in facilitating training sessions and group
consultations.

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7. Supervision and Reporting

The Consultant shall report to the Project Implementation Unit (PIU) at the Ethiopia
Enterprise Development
8. Communication
The International Consultant shall;
 Direct all communication, regarding the assignment, to PIU coordinator,
 Submit the indicated outputs to PIU Coordinator or a duly authorized
representative,
 Work closely with the BDS coordinator of the Project, who will be responsible for
the day to day communication to facilitate activities,
9. Payment Terms

 Advance of 10% (upon signing of the Contract and provision of matching

guarantee)

 Phase 1: (30% payment) Preparation and approval of inception report detailing

work plan, approval of needs assessment, selection and approval of beneficiary
SMEs

 Phase 2: (30%) completion and endorsement of training package, manuals,

Guidelines for creating BDS landscape in Ethiopia, providing BDS and technical
training given to at least 200 SMEs … etc.

 Phase 3: (20%) completion & acceptance of BDS & technical training given to
additional at least 200 SMEs, including digital skills, e-commerce and Capacity
building of Federal and Regional offices engaged in investment and foreign trade/
export promotion.

 Phase 4: (10%) Acceptance of final comprehensive report …etc.

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