Troubleshooting Business Connectivity Services
Working with BCS one might run into the following error
“There is no Business Data Connectivity Service associated with the current web context”
when going through SharePoint Designer 2010 to create an External Content Type.

To solve this check to make sure the BCS Service Application is STARTED through “Manage Service Application” in Central Administration.


In addition, check if the Business Data Connectivity Proxy is configured for your web application:

If not checked, check it and click OK to save your changes.
Now if you go back to SharePoint Designer 2010 and click on External Content Type you shall see this pretty screen to provision the external content type:

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Categories: Office 2010, SharePoint 2010, SharePoint Designer 2010
I found that even IF you see the BDC Service app associated to the webapp, I had had to edit the default proxy group, uncheck the BDC Service and then add it again. After doing that I was good to go.
Thanks
I had also create a new Business Data Connectivity Service as the administrator did not do this initially. Worht mentioning I think.
Actually, what would REALLY be worth mentioning is how one goes about creating this new service as it doesn’t come configured in SBS 2011 out of the box and nobody’s bothered to really post anything about it, trivial or not.
What if theres no business data connectivity to select on that list on the third image?