Small business

6.6 Segmenting the market 
Objective: To create effective SME programmes adapted to the very divergent needs of different groups.
Many problems result from the failure to respond to the segmentation and differentiation of the SME
market in programme design. As a result, these do not deliver the appropriate knowledge in an appropriate

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way and at an appropriate level. A document of the European Training Foundation on effective programme
design for transition economies is listed in Annex 1.
The market can be segmented for programme development by:
• Stage of development of the business (from pre-start to internationalisation);
• Size of the business;
• Nature of the problem or opportunity (export marketing, information technology development,
production and finance);
• Educational background of the clients;
• Industry sector; 
• Age (youth, young entrepreneurs, retirees opening a business);
• Ambition (as reflected in the scale of any particular planned development);
• Company status (informal, formal, self employed, partnerships, limited companies);
• Market focus (domestic or export, consumer or subcontracting, etc.);
• Level of technology and innovation (with special programmes for inventors and spinouts from
universities or large companies);
• Gender or ethnic group;
• Degree of poverty or social exclusion.
The role of public policy is to assist in the identification of specific needs and creating programme
models designed to meet these.
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
6. Programme Development 
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Developed countries now have a variety of special programmes for graduates to encourage them to set up businesses near
universities to prevent ‘brain drain’. There are specific adaptations of these for technology and for science and engineering
undergraduates. Different models of business start up programmes take account of the sophistication of the client group and
the scale of business envisaged.
In a similar to effort encourage the building of links between academia, a science incubator programme covering the Czech
Republic, Hungary, Poland and the Slovak Republic was executed with UNIDO support. The programme has facilitated the
establishment of small enterprises or improvements in their performance (some are now exporters), and has also enhanced
cooperation in the field of innovation and business start-ups among the participating countries and of these countries with
EU countries.