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Sector units (SU)

1. History

Sector Units have become a great successtory in Europe during the middle ages. Craftsmen, although competitors saw the advantages of forming a cluster in order have a better representation of their interests. These guilds are to this day active and successful.

This successful approach has been introduced to 3 Chambers of Commerce in Santa Catarina, Brazil (1991). Today more than 35.000 companies in over 500 chambers of commerce and industry use this method in Brazil alone!

1. Definition

A sector unit is formed by various companies located in the same city, usually part of the same segment of markets, such as leather. Each company sends a representative and meetings will be held periodically.

To ensure a structured and successful group meeting the sector units are accompanied and facilitated by a group consultant, who is linked to a local business membership organisation (BMO). The group consultants are the link between the needs of the entrepreneurs and the BMOs they are a member of.

Sector Units focus on small and medium size enterprises (SMEs) and on businessmen or professionals who seek the development of their companies as a group.

The BMO’s involved in the Re-Tie Bangladesh Project are:

DCCI, BFLLFEA and BTA

1. Goal of Sector Units

The overall objective of sector units is the accomplishment of common actions (e.g. sustainable production, implementation of water treatment, etc…) by seeking the advantages for the companies involved.

Sector Units (SUs) provide great advantages for the I) entrepreneurs as well as for the II) BMOs:

I) Advantages for Entrepreneurs:

a) SUs decrease costs by:

  • providing access to trainings and consulting
  • providing possibility of buying and selling as a group
  • helping with the participation in fairs and entrepreneurial missions

b) SUs strengthen the company by:

  • helping accessing and widening the market
  • accomplishing a network market

c) SUs improve the production process by:

  • technology transfer
  • energy efficiency / sustainability

d) SUs strengthen the region by:

  • involvement in social projects

II) Advantages for BMOs:

a) SUs help to increase representativeness:

  • closer at the basis
  • direct contact
  • problems can be located more easily (e.g. need for qualifications)

b) SUs help to increase the services provided by the BMOs

  • organization of seminars
  • legal advice

c) SUs help to qualify employees:

  • organization of trainings to qualify employees
  • highly skilled employees = high product quality

d) SUs help the BMOs to gain a positive Public relation

  • interaction between content members
  • increase in services for members makes the BMO more attractive to entrepreneurs who aren’t members yet (increase in number of members!)
  • pro-active participation in local and regional development

 

Conclusion:

Sector Units help entrepreneurs (SME) as well as business membership organizations (BMO) to increase in quality, productivity and competitiveness.