Designing Value-Based Market Development Interventions for SME Competitiveness: The 'Benefit Against Cost' Framework as a Strategic Tool
17 Pages Posted: 8 May 2009
Date Written: May 5, 2009
The key challenge for any market development initiative is to show the market actors the value creation potential (i.e. the incentive picture) so that they themselves begin to invest into the interventions advocated. The argument placed in this paper is that if the incentive picture is clear and lucrative enough, SMEs even start to improvise on the facilitator’s intervention leading to further market growth. This paper proposes that the B-C (Benefit-against-Cost) framework can be used as a strategic tool to devise such a ‘compelling incentive picture’. To this end, two cases of market development intervention are presented to showcase how such value-based market development interventions may have actually worked.
Keywords: SME competitiveness, market development intervention, benefit-against-cost framework, incentive picture 1
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