Poor BDS system arises from inadequate or mismatched service offers from BDS suppliers and weak demand from SMEs. It is in this light that Swiss Contact developed the business centre approach which uses an incentive-based form of support to encourage the development of effective and sustainable, demand-led suppliers of BDS to SMEs. Originated in Latin America, the business centre approach was applied to Indonesia and Philippines, using preliminary framework of good practice principles and benchmark indicators such as services, clients, market, financial viability, funding mechanism, institutional development and impact. The approach gained success as its achievement centered around the following: development of market-based, business-like BDS providers, development of an approach built on measurement of financial performance, and development of an innovative approach to donor support of BDS provision.
