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Promoting BDS Adoption: e-Coupon System for SMEs in Tanzania

The ENGINE program introduces an e-Coupon system to incentivize SMEs in Tanzania to test and purchase Business Development Services (BDS). This market-driven approach aims to overcome the underdeveloped BDS market and encourage non-traditional users. The web-based system efficiently manages voucher issuance, redemption, and tracking, providing real-time data analysis and removing transcription costs/errors.

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Promoting BDS Adoption: e-Coupon System for SMEs in Tanzania

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  1. Enabling Growth Through Investment and Enterprise Program (ENGINE) Component Two: e-Coupon System

  2. Background • For many years, BDS in Tanzania has been offered “for free” through Government or donor-funded programs • Thus, many SMEs do not appreciate the value of Business Development Services • And are therefore not willing to “purchase” BDS • BDS market supply is emerging, albeit with some challenges Result: • Under-developed BDS market, despite huge potential given growing number of SMEs • “Non-market-driven” BDS provision is not sustainable and has not reached many SMEs

  3. E-Coupon System Definition & Objectives • e-Coupon System: Mechanism to deliver smart discount to SMEs to incentivize them to test and purchase BDS • Main Objective: Encourage non-traditional BDS users to test/appreciate BDS through market-linked approach • SMEs request/receive discount vouchers by SMS when purchasing BDS • Web interface for management and reporting • Manages different vouchers with different TZS values & links redeemed voucher with different BDSPs • Info on location of market actors • Managers can view data on vouchers, actors and as reports or in map format

  4. Voucher Issuance & Redemption Process • SMEs send SMS voucher request to the system using designated key words • If registered SME, system sends code for voucher value & lifecycle • Unique code of service identifies specific BDSP & services • Voucher is redeemed by BDSP in "exchange" for service delivered to SME (occurs when e-Coupon code is matched to unique service code) • Voucher is tracked to ensure BDSP is paid after proof of service. Vouchers can also be voided if necessary

  5. E-Coupon System Advantages • Increases voucher efficiency, security and tracking • Improves data quality • Enables rapid access to information • Allows more real-time data analysis • Removes costs/errors associated with transcribing data

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