The Private Sector Develop-ment Programme (PSDP), a three-year-old joint project of Jamaica and the European Union, has allocated $200 million for the development of ten business clusters.

The programme is meant to reposition them as business savvy operations able to compete for commercial deals in a cutthroat environment.

The clusters within the micro, small and medium-size enterprises (MSMEs) sector were culled from a field of 42.

MSMEs, says Industry and Commerce Minister Karl Samuda, already contributes 80 per cent of total employment in Jamaica, but if strengthened could drive even more jobs.

The winning clusters range across key areas of creative industries, tourism and agribusiness, and are targeted for technical assistance and capital funding.

Operators in the business of craft, gifts, wellness, apparel and fashion, will be guided by the Kingston-based Jamaica Business Development Centre, one of the lead agencies that will administer the cluster programme.

The visual and performing arts cluster will have oversight from Jamaica Trade and Invest, another lead agency administering the programme on behalf of the PSDP.

The egg industry which will be supported by Jamaica Egg Farmers Association; fish will get support from the Aquaculture Contract Farmers Association; and the Jamaica Music Business Network will be coordinated by the Recording Industry Association of Jamaica.

The other clusters involve Negril and western Jamaica MSMEs supported by the Negril Chamber of Commerce; small ruminants which will be managed by Jamaica Sheep Farmers' Association, and tourism to be supported by the Competi-tiveness Company, a unit of the Jamaica Exporters Association (JEA).

opportunity

"Working together in cluster provides an opportunity for Jamaican companies in the MSME sector to build on complementary objectives that will promote competitiveness, productivity and efficiency of the wider group," said Samuda.

However, for the programme to be successful he says its application needs to be simple, practical and easily understood.

The 'cluster methodology', similar businesses working together, is being tested in Jamaica as a key tool in growing businesses and facilitating enterprise.

"The cluster approach is a tried and proven way to build trust and competitiveness," said Robert Gregory, President of Jamaica Trade and Invest, citing the examples of British Airways and American Airlines, which compete vigorously but also collaborate.

He said that the flow of foreign direct investment to the island has increased over the years and is now contributing 7.0 per cent of GDP, but the benefits of this has not trickled down to the MSMEs, who are largely unable to compete effectively for business.

Initial efforts under the programme will focus on enhancing the administrative capacity of the clusters through their support organisations.

access to financing

But the clusters will also have access to financing for research, product development, joint marketing, improving quality, and training.

To date, the PSDP has granted $257 million to 57 private and public firms for training and capacity building.

Another $255 million has gone to 117 MSMEs for business development.

The JBDC, JEA and JTI are signatories to a memorandum of understanding under the programme to establish a network of business information points and export centres islandwide.

sabrina.gordon@gleanerjm.com

The 10 clusters

Authentic Jamaican gifts and crafts

Egg industry

Jamaica fashion and apparel

Fish (tilapia)

Wellness

Jamaica music business network

Negril/Western Jamaica MSMEs

Small ruminants

Tourism

Visual and performing arts

TAKEN FROM THE FINANCIAL GLEANER, FRIDAY, NOVEMBER 23, 2007