Small business

4.4 Developing the private consultancy and training market for SMEs
Objective: To enhance the capacity of private training and counselling services to work with SMEs and ensure
professional standards of such services. 
Rather than developing support services for SMEs themselves, governments can help to create markets
for such services by encouraging private counselling and consulting organisations to undertake a certain
amount of work with SMEs at marginal fees (possibly subsidised by the government). This model, which
helps to ensure that the supply of services is market driven, is favoured among others in Germany. Private
consultancy or counselling firms benefit by selling spare capacity; SMEs get expertise for an affordable
fee and learn how to use the market for counselling and consultancy. An alternative to direct subsidy is a
system of vouchers given directly to SMEs for purchasing services of their choice in the market.

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Government influence on consultancy services through this approach can also be used to set standards
for consultancy, counselling, training and education services, or encourage self-regulation through
associations. Donor guidelines for intervention in business development services may be found in
Annex 9.15.
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
4. Stakeholder Development
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The Association of Counsellors/Consultants in Poland was set up on the basis of training programmes designed to
establish standards for SME services. 
In Canada a network of Small Firms Counsellors was established by the Atlantic Canada Opportunities Agency (ACOA)
for the Atlantic Provinces. It has now extended across Canada.
The Bank Rakyat Indonesia and Banco Sol in Bolivia are well known examples of sustainable micro finance institutions
from which important lessons can be drawn, in particular that there are methods of meeting the financial service needs of
the poor without subsidy and that it is possible via scale economies to ensure profitable development of commercial microfinance
institutions while offering effective protection to the public at large.
The Ukrainian National Association of Savings and Credit Unions (UNASCU) coordinates and represents over 100 credit
unions, which are important sources of micro credit. It has a training centre and also provides advice on issues such as
bookkeeping and compliance with laws. UNASCU requires members to use a standardised reporting system and developed
a rating system, to fill the gap in government regulations with regard to standards for credit unions. The Credit Union Law
adopted in 2002 it is expected to strengthen the role of UNASCU and the standards it developed.
A major focus of activity in Western Europe has been to set standards for services by framing sets of competencies for
SME trainers and counsellors. The Guides to Training Competencies published by the European Union Centre for Vocational
Training and Development CEDEFOP (see Annex 1) have been linked with a ‘Training the Trainers’ Programme.  
In a similar vein, the development of competency standards for counsellors and advisers of small businesses in Canada
has been followed by the development of associated training. In Africa, the Micro Finance Capacity Building Programme
(AFCAP) focused on developing local private sector training capacities. Through careful selection of associates, a cadre of
competent training, consulting and technical assistance providers was created.