The document discusses Jamaica's experience with cluster development through the Private Sector Development Programme (PSDP). The PSDP was a €26.17M initiative funded by the EU and Government of Jamaica from 2004-2009. It aimed to increase competitiveness of micro, small and medium enterprises through technical assistance and grants. The programme supported 10 industry clusters through two institutions, JAMPRO and JBDC. It provided a range of support from policy work to firm-level assistance, impacting over 5,000 businesses. Key impacts included new products, market expansion, and improved business practices. The experience demonstrated the importance of organizational support and long-term financial resources for cluster sustainability.
Unit-IV; Professional Sales Representative (PSR).pptx
RFCD 2011: Ms. Delaine Morgan: Cluster Development Jamaica
1. ROLE OF GOVERNMENT IN CLUSTER
DEVELOPMENT
Experience In Supporting Cluster Implementation
THE CASE OF
THE CASE JAMAICA
OF JAMAICA
2. BACKGROUND –CLUSTER DEVELOPMENT IN JAMAICA
• Jamaica’s experience in the area of cluster development
commenced in 2002
• Formation and support of clusters in the Agribusiness, Tourism
and Entertainment sectors under the Jamaica Cluster
Competitiveness Project (JCCP)
• JCCP - A two year pilot project funded by DFID; USAID, the
Government of Jamaica and the Jamaica Exporters’ Assoc. (JEA)
• In 2003 feasibility study commissioned by the European
Commission
Key Recommendation: the design of a private sector
development programme to enhance the overall competitiveness
of Jamaica’s private sector .
3. RIVATE SECTOR DEVELOPMENT PROGRAMME (PSDP)
OVERVIEW
A € 26.17 M initiative jointly funded by the Government of
What is the PSDP Jamaica and the EU and which operated from 2004-2009
Geared at increasing competitiveness of Jamaican
Micro, Small & Medium Sized Enterprises (MSMEs)
as well as strengthening their support Institutions
PSDP Objectives Via the provision of technical assistance & grant
funding
Using key business support institutions in the private
& public sector to execute various Programme
activities to maximize firm level impact.
Operating 2 Public Sector Institutions (JAMPRO & JBDC) contracted by
the PMU to implement the Programme via a Cluster led
Framework Approach.
Wide range of Macro (policy level), Meso and Micro
Key Outcomes interventions implemented via 12 Programme components
impacting over 5000 MSMEs and 10 clusters
Registered exporters
Aspiring exporters
Export ready enterprises
4. TWELVE (12) PSDP COMPONENTS
3 FOCUS AREAS COMPONENTS/SUPPORT KEY FEATURES
PROGRAMMES
MACRO •Target Growth Competitiveness •Monitoring of Competitiveness issues to improve business
(Policy Level) Enhancing Committee environment; Policy formulation to address issues;
Ja’s business environment Targeted research
MESO •PSO Capacity Building Scheme •Cost sharing Grants for organisational strengthening &
(Institutional Level) development
Achieving higher standards
of management in the area
of BDS
MICRO (Firm Level) •Cost Sharing Grants for MSMEs •Grant Funding on a cost sharing basis
Enhancing enterprise •Enterprise Rating &Upgrading •Rating & Benchmarking of MSMEs
competitiveness and access •Market Penetration •Support to penetrate existing & new Mkts.
to financing •Consortia Activities •Funding of multiple workshops & seminars
•Back Office Services •Specialised BDS for MSMEs through PSOs
•Business Information Points •Provision of value added info & services
•Export Centres •Provision of tools/services to develop export capabilities of
MSMEs;
•Cluster & Sector Initiatives •Facilitating cluster development activities
•Corporate Finance Broker •Financial advice and hand holding of MSMEs to access
external sources of financing
5. PSDP OPERATING FRAMEWORK
– Cluster Led Approach
• PSDP contracted JAMPRO & the Jamaica Business Development
Corporation (JBDC) to manage various programme components through
established clusters;
• Both JAMPRO and JBDC were directly responsible for 5 clusters each to
ensure:
– PSDP objectives were met in the area of cluster development
– PSDP funds were fully accessed by individual clusters
– Relevant guidance and support were provided to all stakeholders within
the cluster
6. OVERVIEW: JAMPRO & The JAMAICA BUSINESS
DEVELOPMENT CORP. (JBDC)
JAMPRO JBDC
Mandate JBDC was established in April 2001 by the
JAMPRO is Jamaica’s Export and
Investment promotion agency formed in Government of Jamaica and is charged with the
1988 to stimulate, facilitate and promote the responsibility of facilitating the development of
development of trade and investment in key
sectors of the island’s economy. MSMEs in making a contribution to the country’s
economy.
Staff Complement 88 skilled professionals with expertise in Over 100 skilled professional business advisors,
export development, investment and export engineers and industry specialists
promotion and business facilitation
Client Base Aspiring & Existing exporters ; local and Micro, Small & Medium size enterprises (potential
foreign investors & existing)
Cluster Experience Cluster Unit established in 2007, to support JBDC has significant experience gleaned from
industry-based clusters with a cadre of staff successfully implementing cluster/networking
trained in the UNIDO cluster modality. programmes using int’l best practices (UNIDO &
Cluster Navigators)
7. PSDP TARGETED INDUSTRY CLUSTERS
FISH TOURISM
MUSIC WELLNESS
TARGET
INDUSTRIES:
NEGRIL Agribusiness EGG
(TOURISM) Creative Industries
Tourism
Services
VISUAL AND FASHION
PERFORMING
ARTS
AUTHENTIC
SMALL GIFTS
RUMINANTS & CRAFTS
8. ASSIGNED CLUSTERS BY CLUSTER SUPPORT AGENCY
PSDP BUDGET ALLOCATION PER CLUSTER = € 172,000
CLUSTER SUPPORT
AGENCY
JAMPRO JBDC
MUSIC
WELLNESS
FISH
EGG
NEGRIL (TOURISM)
FASHION
VISUAL AND
AUTHENTIC GIFTS &
PERFORMING ARTS
CRAFTS
TOURISM
SMALL RUMINANTS
9. FASHION CLUSTER VALUE CHAIN
Patternmakers
Designers/ Merchandisers
Stylists
Associations
Producers
and agencies
Technical Distributors
support
Raw material
Fashion Shows
suppliers
Fashion Retail Accessories
Houses (Craft producers)
10. PSDP CLUSTER SELECTION & DEVELOPMENT FRAMEWORK
Build interest and Identify and define
participation clusters
1.Mobilisation 2.Diagnosis
CLUSTER
DEVELOPMENT
FRAMEWORK
4.Implementation 3.Collaboraive
strategy
Build commitment and Identify and prioritize
mechanisms to challenges and actions
implement policies with stakeholders
11. PSDP ASSISTANCE TO CLUSTERS
10 Clusters
Support Services
Technical Funding/
Services Grant
Export Centres/ Enterprise Corporate Target Growth Other Cluster Cost Sharing
Business Raring & Back Office Market development
Finance Competitiveness Business
Information Upgrading Committee Services Penetration initiatives Development
PointsIPs (rating services) Broker
Services
PSDP SUPPORT PROGRAMMES
12. JAMPRO CLUSTER SUPPORT STRUCTURE
FISH NEGRIL VISUAL & TOURISM MUSIC
(Tourism) PERFORMING ARTS
Facilitator Facilitator Facilitator Facilitator Facilitator
PSO PSO PSO PSO PSO
PMU
Support
Relevant JAMPRO
Support Depts. Cluster Coordinator 1 - Fish; Negril ;V&PA
Cluster Coordinator 2 - Tourism ;Music
Cluster and
PSDP Support Progs
Linkages
Dept.
Local BSPs Administrative Support
Int’l experts
Other Int’l donor
Progs. Dept. Manager
Vice President, JAMPRO
( Cluster Support Agency)
13. JAMPRO CLUSTER SUPPORT SERVICES
• Assist clusters in completing their diagnostics
• Provide ongoing guidance and assistance to clusters in developing and
executing their operational plans
• Hand holding the cluster through the implementation process
• Facilitate monthly monitoring meetings with cluster
facilitators/PSO/cluster leadership to plan activities, review outputs and
targets & address issues.
• Execute cluster development training programmes
• Contribute and provide guidance at regular cluster meetings where
relevant
• Provide mediation advice and intervene where relevant to assist clusters
in addressing issues.
14.
15. PSDP IMPACT ON CLUSTERS SUPPORTED
PSDP impacted a wide cross section of MSMEs and associated institutions who
were members of individual clusters; Cluster membership supported by the
Programme was in excess of 1100.
Membership per Cluster
6% 6%
Authentic Gifts & Craft
7%
Jamaica Fashion & Apparel Cluster
16%
4% Jamaica Wellness Cluster
Egg Industry Cluster
Small Ruminants Cluster
Music Cluster (JARIA)
5%
The Visual and Performing Arts Cluster
5% The Jamaican Fish Cluster
27%,VPA
Negril and Western Jamaica MSME
4% The Tourism Cluster
21%, Music
16. PSDP IMPACT ON CLUSTERS SUPPORTED
Cluster Programme - New Products Developed/Enhanced Distribution
9
8 8
8
7
7
6
No. of Products
5
4
4
3
2
1 1 1 1
1
0
Small Ruminants Negril MSME Wellness Gift & Craft Jamaica Fish Fashion Cluster Music Cluster VPA & Fashion
Clusters
17. PSDP IMPACT ON CLUSTERS SUPPORTED
Participating PSOs equipped with cluster development
methodology tools and applications
Improved Business Practices & Increased profitability of firms
assisted
Market Diversification:
o Fashion cluster has successfully broken
into European, Canadian and Caribbean Markets
o Main distribution outlet established for
Gifts and Craft cluster (Things Jamaican retail chain)
o Small ruminants cluster has impacted the local market by
increasing their supply of lamb products from .02% to 5% at end
of the PSDP
Business linkages within and across value chains
18. WHAT HAVE WE LEARNT IN JAMAICA
Each cluster is unique, with its own set of challenges defined by several factors
including:
membership profile,
industry,
cluster stage
Support system etc.
Organizational support infrastructure critical to continued success of clusters
Cluster development is an on-going evolving equation
Clusters takes on average 5 years to become self-governing and self-financing
Adequate financial resources required for some time before clusters can self-sustain
Clear commitment and involvement of cluster members required from very beginning
of the process