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Network Brokerage System: Building Cooperation among Small Businesses

The Network Brokerage System seeks to build cooperation among small and medium enterprises - enabling small companies to compete successfully. The model is based on the extensive international experience of the Danish Technological Institute (DK-DTI) in networking and clusters between Small and Medium sized Enterprises (SMEs).
 
As part of its Pan Caribbean SME-ICT Competitiveness Development Programme funded by the Commonwealth Secretariat, Mega Ace Consultancy successfully implemented Network Brokerage System in five countries in the Caribbean islands. Under this programme, which sought to bring about the strategic application of ICT for the SME sector, Mega Ace undertook training for Network Brokers and implementation a SME Database in Antigua & Barbuda, Belize, Dominica, St. Kitts & Nevis and St. Lucia.  

A Primer on Network Brokerage

  • The customer’s perspective: Business networking is a way to improve competitiveness by helping the small and medium sized firm to identify, develop and exploit new business opportunities. Customers gain access to resources that they would not have by any other means e.g. sharing costs. They should complement each other with the unique services, skill, capacity, products, and market access that they bring to the network.
  • Impact on the local economy: Firms have always established networks, joint ventures and alliances spontaneously. These have not been of significant scale or lasting nature, and have not involved a broad base of small firms on which local economy depends. The aim of business networking is to change business attitudes and behaviour. This is not a short term development. Networking only has impact if it has scale.
  • Client Country perspective: Business networking should fill a gap in the existing range of services. MSEs do not normally have the broad range of competence, resource and finance that would allow them to turn strategic advice into action. What one small firm can not do on its own it might be able to do with three, five or ten other companies.
  • International good practice: The Business Networking Model reflects over twelve years' international experience. It will align with existing economic development priorities supported by the client countries. The broker will have a disciplined approach, for identifying new business opportunities in the local economy. They should foster links between firms in co-operation with other client country brokers.
  • Customer focus: Customer focus is inherent in business networking. Networks, by their very nature, grow directly from customer needs or opportunities that originate from companies. Brokers will identify such needs and opportunities and develop them at the firms' own premises. This service is highly interactive. Brokers’ performance will immediately indicate how well focused their approach is, allowing them to, adjust or correct their approach. Support and monitoring by client countries need to be well organised.
  • Service delivery: For the duration of this networking project the Mega-Ace consultants will work as a team to help establish the infrastructure and process. This can only be successful with the full support of the client countries, probably be employed by a government department or a chamber of commerce involved in the delivery of government services.

Visit the Picture Gallery to view images of Mega Ace Consultants at work in the Caribbean delivering the Pan Caribbean SME-ICT Competitiveness Development Programme.