proposal of cluster developement in syria

SME SUPPORT PROGRAM IN SYRIA

A PROPOSAL TO SUPPORT THE STRENGTHENING OF SYRIAN’S Small

& Medium Enterprise (SME) THROUGH CLUSTER DEVELOPMENT

PROGRAMME (CDP)

Presented byDavide Menini

Senior Marketing and Sales ExpertDamascus February 2010


February 2010 Davide Menini 2/20

Context

The need for SMEs to be organized in viable groups in order to exploit the advantage of economies of scale.

Increase SMEs production Increase the Commercialization Capacity Diversify products through Research & Development

(R&D) programs Develop markets for Syrian’s SMEs products Improve quality and comply with sanitary, and/or

technical standard regulations for the local and international markets

Set up services reaching Syrian’s SMEs to enable them to link into export supply chains


Davide Menini 3/20

Clusters Development Program (CDP): an opportunity for Syrian's SMEs

Cluster Development Program (CDP) is an approach where enterprises combine their strengths and jointly take advantage of business opportunities or solve common problems. Similar programs are political priority in several industrialized, semi-industrialized and non-industrialized country, because:

• strengthening country economy

• improve modernization of industrial sector

• promoting industrial cooperation

• improve competitiveness of local enterprises

• encouraging internationalization process

• develop political to support R&D

• increase workforce competitiveness

• prevent the decline of productive sectors and the employment destruction

• stimulate the generation of new enterprise

• stimulate new business models

February 2010


Davide Menini 4/20

What is a Cluster?

Clusters are geographic concentration of interconnected companies and institutions. In a cluster can participate:

• Suppliers:• Machinery, Equipment • Raw material• Semi elaborated products• Packaging• Services (transports, etc..)• Industries related by skills• Specialized infrastructure

• Institutions:• Governmental institutions• Universities• Standard-settings Agencies• Vocational Training Provider• Trade agencies• Laboratories

February 2010


Davide Menini 5/20

¿What are the benefits for companies that participate in a cluster?

1. Support during the definition strategy of business and R&D.1. Business model development2. Product development3. Industrial process optimization

2. Cluster Positioning1. Support in marketing activities2. Support commercialization and distribution process3. Participation in fairs (grant, fellowship and support program)

3. Cluster Management and Internationalization1. Internationalization plans

i. Support in positioning processii. Support in research and recruitments of internationals distributors,

agents and brokers2. Financial search 3. New companies search 4. Relations with national and international Institutions and politicians

4. Training1. Training programs for managers (Masters and PhD)2. Life long learning for workforce

February 2010


Davide Menini 6/20

Role and key elements of CDP

RoleTo strengthen and enhance the competitiveness of enterprises within a particular sub-sector.

Key elements 1. Trust building2. Cooperation and/or joint action among the sub-sector

actors3. Coordination by full time Cluster Development Agent

(CDA)4. Implementation of a Strategic Action Plan,

February 2010


Davide Menini 7/20

Types of joint activities

Trust building Meeting, Exposure, Seminar/workshop

Pilot activities Technical lectures/seminars/workshops Demonstration of new technology

Regular (short/medium run) activities

Participation in fairs, Raw material purchases, Quality improvement Training/consultancy, Outsourcing business development services, Skill up-progression

Strategic (long run) initiatives

Brand building, Laboratory creation, Information centre, R&D centre, Technology modernization

Improvement of linkages

Networks formulation, Association Institution building Restructuring and industrial reconversion

February 2010


Davide Menini 8/20

Project Proposal – by Davide Menini and SEBC

Pilot project based in Damascus (two agro food clusters) and Aleppo (footwear cluster)

Train 30 - 40 key actors including prospective cluster CDA in order to raise general understanding of this program and initial capacity for trust building.

Conduct an in-depth diagnostic study of Agro food and footwear SMEs in the cluster to:

• Understand the socio-economic environment of the cluster;

• Identify the most effective leverage points for intervention;

• Provide a baseline for future monitoring and evaluation;

• Build initial trust with and among the stakeholders.

February 2010


Davide Menini 9/20

Project Proposal

Building on the findings of the diagnostic study, and working in close cooperation with the cluster stakeholders. Develop a vision for each cluster and a strategy to achieve it, as well as the cluster action plan.

The diagnostic study will be a basis for developing and implementing longer term visions, goals and action plans aimed at improving the competitiveness of the cluster.

This project can be replicated in different clusters in the country.

February 2010


Davide Menini 10/20

Structure of the Action Plan to implement the Proposed Pilot Project

Stage I: Trust building

Stage II: Diagnosis

Stage III: Strategy

Stage IV: Implementation

Building interest and involvement among the different participants.

Assessing the industry clusters.

Identify priority challenges, and action plan.

Stage V: Evaluation

Create an organization to sustain the implementation.

Set up a permanent Syrian Cluster Observatory

February 2010


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Among players and between players and CDA

Entails / Implies • Sustained interaction

• Recognition & communicating of mutual benefits/interests

• Recognize shared values

• Identify leaders

Benefits • Prepares to share risks

• Prepares to share information

• Learning & Innovating togetherStage I:

Trust buildingStage II:

Diagnosis Stage III: Strategy


Stage V: Evaluation

February 2010


Davide Menini 12/20

Stage II: Diagnostic

Entails / Implies• Definition of objectives

• Definition of model and methodology of analysis

• Personals visits and interviews with the entrepreneur

• In depth analysis of each enterprise

• Definition of a personalized viability plan Benefits

• Deep analysis of business operation

• Customization of the cluster participation project

• Developing current reality tree


Stage II: Diagnosis

Stage III: Strategy


Stage V: Evaluation

February 2010


Davide Menini 13/20

Stage III: Development of Cluster Strategy

Entails / Implies• Create highly inclusive cluster working groups,

• Select working group leaders

• Create accountability mechanisms, and progress milestones throughout the process.

• Develop concrete action plans, focusing on reform and redesign of services, adding value to existing resources, and enabling market innovation.

• Establish the market viability of each initiative to ensure the necessary support from stakeholders for taking action.

Benefits• Developing a cluster map

• Industry structure analysis

• Value chain analysis

• Stakeholders implication


Stage II: Diagnosis

Stage III: Strategy


Stage V: Evaluation

February 2010


Davide Menini 14/20


Entails / Implies• Create a Cluster Development Agent (CDA) to head and supervise

the initiative.

• Identify sources of ongoing funding, which would be appropriate with the type and scale of the action plan initiatives.

• Develop a monitoring system to track activities and communicate the outcomes, focusing on regional economic performance, structure and health of industry clusters, and the response to clusters by the economic infrastructure.

Benefits• Strategical vision

• Efficiency

• Focused Project Objectives


Stage II: Diagnosis

Stage III: Strategy


Stage V: Evaluation

February 2010


Davide Menini 15/20

Stage V: Evaluation Plan of cluster initiative.

Entails• Definition of the indicators and methodology

• Evaluate the Impact of CDP on the company base.

• Evaluate Impact of CDP on the R&D&I base.

• Evaluate impact of CDP on the cluster and the broader business environment.

Benefits• Benchmarking

• Detection of error and/or deviations

• Quick correction of errors

• Develop improvement plans

• Detection of opportunitiesStage I:

Trust buildingStage II:

Diagnosis Stage III: Strategy


Stage V: Evaluation

February 2010



Davide Menini 16/20

CDP Calendar

1st year 2nd year onwardsTime

Act

ion

Pla

n ac

tiviti

es


Stage II: Diagnosis

Stage III: Strategy

Stage V: Evaluation process

February 2010


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Cluster Development Agent (CDA) – Role

Become the Catalyst Formulates and facilitates implementation of the

development strategy, in collaboration with the entrepreneur, suppliers, traders, and active support institutions active in the sector

Generally comes from outside the cluster (not a stakeholder in the cluster)

To build trust among the cluster stakeholders, which is a crucial task.

Must be able to get stakeholders with divergent views to agree on targets and implementation priorities.

February 2010


Davide Menini 18/20

Possible activities under the CDP

Must be based on identified gaps/bottlenecks in the cluster

• Build trust and training

• Make Available information

• Raise production volume

• Improve processing methods

• Improve quality

• R&D, including market research

• Promote value addition to the entrepreneurs

• Facilitate access to credit and finance

February 2010


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Other Possible activities under the CDP

Competitiveness enhancement • Promotion of complementary businesses

• Promotion of policy dialogue through a stronger voice from grassroots enterprises as a joint action

• Coordination and monitoring technical assistance provided by various development organisations at the grassroots level

• Identifying and engaging business development services providers

February 2010


Davide Menini• Senior Consultant in Marketing strategy and analysis

and Sales Strategy development

• Professor of Marketing and Sales in several universities and institutions (La Salle, Euncet, UB, UAB, IQS, UPC, Trieste University, Barcelona Activa, ESVEN Business School, etc)

• Senior Expert in MEDA programs, Leonardo Programs and Framework Programs in Arabs Countries and East Europe

• CEO of Alto Rendimiento Empresarial

• Director and Senior Consultant of ICC (Institute of Commercial and Sales Quality)

Contacts: +34605881858; davide. [email protected]

proposal of cluster developement in syria

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