The development of small and medium-sized enterprises (local development corporations) has long been considered an important element for achieving broader development goals, such as poverty alleviation, economic development and the promotion of societies characterized by greater democracy and pluralism.
In recent decades, donors have expanded their support for local development corporation development interventions in significant proportions and have thus been able to accumulate significant experience in this area. However, the accepted methods have recently radically changed.
Donors support the development of local development corporations in various forms. New types of real estate are opening for them, for example, a smart business center. Since the early 1980s, assistance received by financial services has received particular attention, reflecting the widespread belief that real progress has been made in the development and provision of services. in favor of microenterprises. Roughly, it provides support in the area of Business Support Services (EAS) for SMEs, which has been well received by donors. But over the years, interventions were usually limited to training and technology and often attracted donors and implementing agencies that worked directly.
No priority was given to the sustainability of the department of small business services, as it was seen as an investment in the future, and little attention was paid to issues of impact, effectiveness and efficiency.
Just as companies that need to have a good knowledge of the needs of their clients in order to be successful, organizations for economic cooperation and development are required to obtain accurate knowledge of the situation of SMEs in order to be able to adequately respond to their needs and develop their offer. This aspect is fully consistent with the process of adopting the type of enterprise applied to the supply.
Therefore, any intervention research aimed at promoting development begins with an assessment of their needs and perceptions. Donor support for the development of SMEs is based on the belief that their effectiveness can be improved by changing various factors that affect them, including factors of the demand side, such as location, location, consumer relations, purchasing power, politics and use of power, as well as supply factors, such as skills, networks, access to resources, infrastructure, accessibility information, and official rules.
In addition, experience similar to the experience of local development corporations shows that organizations for economic cooperation and development respond positively and express their willingness to pay for training programs if they meet the immediate need.
The purpose of donor support is to improve performance by meeting their operational needs. Although the provision of such support usually has roots in economic and social problems, its goal is to improve the process of business development in terms of increasing the number of startups, increasing survival and accelerating growth; therefore, it is necessary to compare best practices for collateral with this overall objective. But the Department of Small Business Services remains a relatively underdeveloped sector.
This is the most common form of change. The training covers many pedagogical events (usually these are not individual lessons), in which facilitators, instructors and groups of trainees participate.
The training is aimed at developing the knowledge and skills of SMEs in such operational areas as marketing, accounting, production methods and product development; The training also addresses issues such as finding new customers, getting better prices, lowering the cost of materials, and finding useful intermediaries such as customers, suppliers, and employees.
It is generally accepted that in the past many training interventions by the organization for economic cooperation and development were too universal and focused on the proposal that they were carried out by low-skilled personnel who adopted an inappropriate teaching style in accordance with the hierarchical principle (top to bottom); the training staff did not have sufficient knowledge of cost control, the need to encourage student participation, and did not control intervention. However, there is evidence that improvements in the educational mechanisms in SMEs have a significant impact on productivity and added value