Market Assessment

SNV - FAIDA Tanzania 2002

    FAIDA conducted the study to:
    · Measure its penetration of the market
    · Learn about other BDS providers operating in the area
    · Understand other pricing structures/schemes

    FAIDA carried out a survey of randomly selected SEs (all microenterprises.) However, the very randomness of the study resulted in choosing some areas with such low business densities that all the enterprises were interviewed. Most of those surveyed had never heard of either FAIDA or other BDS providers and enumerators had difficulty convincing them that the information collected would not be reported to tax officials.

    Of an estimated potential market of 21,018 entrepreneurs, only 1.37% (288 respondents) were surveyed. FAIDA finds this a gross underestimate of potential market size and claims that twice that number operate in the informal sector.

    Methods for info gathering
    SE survey, Quantitative

    Summary of results
    The Tanzanian BDS market was still in its infancy and the market survey was premature. Although the study was unable to capture a complete and realistic picture of the market, it did reach the following conclusions:
    · Awareness (<10%) and acquisition (<7%) of BDS were low;
    · When people heard the term BDS, they thought of credit and loan schemes, but not other business services;
    · Except for FAIDA's local partners, there appeared to be no full-cost, commercial BDS providers operating in the targeted area - most offered either free or subsidized services; and
    · BDS providers needed to work on convincing SEs that BDS could be at least as important as financial assistance.

    Associated Activities and Documents
    »Case Study: FAIDA SEP Tanzania BDS Support Project, 2002