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Current JOBS
Bangladesh activities are engaged in several business sectors and in
identifying each of these sectors, as with all sector development
activity, the following model is employed. This model allows for
everything from initial assessment of the geographical area and
business environment through to the final agreements with buyers and
employees.
|
1 |
Identification of Sectors |
1.
Criteria
determination
2.
Rapid
market appraisal
3.
Ranking
4.
Elimination |
|
2 |
Sector
Analysis |
1.
Studies
2.
Workshops
3.
Sector
mapping
4.
Technical
analysis of sectors
5.
Baseline
information on selected target clients |
|
3 |
Market /
Demand Analysis |
1.
Market
analysis
2.
Identifying
potential markets
3.
Identification of potential lead buyers
4.
Comparative
advantage of the product |
|
4 |
Producer
Group / Cluster Development |
1.
Identification of group / cluster
2.
Selection
of group leaders
3.
Group
resolution |
|
5 |
Technology Transfer |
1.
Trade-based, skill development training
2.
Basic
business management, marketing, and local resource
mobilization training
3.
Entrepreneurship Development and Business Management (EDBM)
if required |
|
7 |
Market
Linkages |
1.
Linkages
with lead buyers
2.
Participation in the potential local markets |
|
8 |
Policy
and Advocacy |
1.
Address any
policy issues impacting sector or target group
2.
Act as
advocate for stakeholders in overcoming challenges
|
|
9 |
Mentoring
and Monitoring |
1.
Regular
counseling to producer groups / clusters
2.
Sustainability
3.
Develop
database of producer group / cluster members |
1.
Identification of Sectors
Sector selection is an
important step in the JOBS Bangladesh sector development approach.
Experience has dictated that strict selection criterion must be
applied before choosing the sectors for facilitation. In all cases,
sector/sub-sector selection criteria should reflect the goals of the
donors and/or development partners as well as the capacity,
experience, and expertise of the facilitating organization(s). While
determining the criteria, particular emphasis is given to the
products produced by the target population as well as products that
would provide the maximum benefit to this group of people. Criteria
may also vary depending on the goals and objectives of each program
or project.
|
Criteria |
Description |
|
Market
demand and growth potential |
·
Evidence of strong demand for products in local,
national or international markets
·
Buyers have ready market for products
·
Products that are in demand can be or are produced by
the target population |
|
Potential
increase in income and wealth of the target population
|
·
Potential for increased revenues of the target clients
·
The sector has projected increase in sales, profits, and
demand
·
Any impact on gender equality or other socio-economic
concerns is positive |
|
Opportunities for linkages |
·
Potential forward/backward linkages between producer
groups/clusters and lead enterprises operating in the
sector
·
Lead enterprises consider the producer groups/clusters
as a solid supply base to meet their demand
|
|
Potential
for employment generation |
·
Growth potential in sector should manifest itself in new
employment opportunities for the target population |
|
Value
added potential |
·
The sector should have the scope for value-add and
increased earnings |
A ranking system is
established to evaluate sectors per the established criteria. A
simple way to do this is to rank the criteria for each proposed
sector based on a scale of one to five, with one being the lowest
score and five being the highest (see example of sector ranking grid
below). Once criteria are ranked, the numbers are totaled and the
sectors with the highest scores are selected.
|
Criteria |
Proposed
sector |
|
|
Sector A |
Sector B |
Sector C |
|
Unmet market
demand |
|
|
|
|
Potential
for income/wealth increase |
|
|
|
|
Opportunities for linkages |
|
|
|
|
Potential
for employment generation |
|
|
|
|
Value-add
potential |
|
|
|
|
Totals |
|
|
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Once criteria and a
ranking system have been established, information is collected from
secondary sources to narrow down the number of potential sectors and
select the sectors for further analysis. Upon completion, JOBS
Bangladesh undertakes technical feasibility studies on the selected
sectors.
Following the selection of
sectors is a thorough sector assessment and analysis exercise. The
objective of the assessment is to determine the primary constraints
and opportunities in the sectors, and to lay the groundwork for
identifying support initiatives that can promote the sectors.
Techniques used include existing studies, new studies, workshops
with sector representatives, visits to potential markets, etc.
- An in-depth
study is carried out to analyze the sectors and determine program
design, mapping, and identification of support initiatives
- Validation
workshops are held with the partner organizations, donors, and
facilitators to determine the techniques and possible interventions
for each sector, also identifying possible barriers and existing
assumptions.
As part of the
sector analyses, an in-depth study is also launched to determine the
market potential and the comparative advantages of the products
already produced by the target population or possible applications
for skills that population may hold. The study team is heavily
involved in identifying appropriate markets to ensure the sale of
the products and secure the maximum return on any investment. One of
the key efforts of the team is to identify the lead buyers of the
products or possible roles for existing skill sets.
In the next phase
JOBS Bangladesh organizes producer groups or clusters among the
like-minded producers or those with similar / complimentary skill
sets to produce value added products. Each producer group/cluster
consists of at least 20 individuals. The maximum size depends on
the specific project objectives as well as the demand for any
products in question.
The initial task is
to develop trust among the members and give them an understanding of
the objectives of the overall program. The process of formulating
each producer group/cluster takes from 60 to 90 days, including the
observation period, and depends on the composition of the group.
Each producer group/cluster will have an executive committee
selected by other members.
The next level of
effort is to improve product quality by providing intensive
technical skill development training to the members of the producer
groups. This increases market opportunities and supply from the
clusters that have been developed. This training emphasizes the
development of products appropriate to the skill levels of the
clusters and helps to gain the commitment of lead buyers to the
clusters. JOBS Bangladesh sources expert trainers to deliver these
training courses based on the product selection. Training sessions
range from 10 to 90 days depending on the nature of the products,
and there are different training phases, including refresher
courses, to build and maintain a consistent and reliable skill
level. It is very important to deliver the courses in close
consultation with the lead buyers so that the clusters are assured a
market for their products.
Once the product
development training is completed and the market linkage has been
established between the producer groups/clusters and the lead
buyers, the cluster members are provided with training on basic
business management and marketing. This training is very important
for the sustainability of the producer groups/clusters as experience
shows that the sustainability of the cluster depends on the
management and marketing capacities of its members. There are two
courses and JOBS Bangladesh has designed these modules and materials
themselves in order to develop the capacity of the producer
groups/clusters members.
1. Entrepreneurship Development and Business Management (EDBM)
2. Enterprise Development and Market Linkage Development
Local resource
mobilization is one of the preconditions for effective sector
development. JOBS Bangladesh makes use of raw materials and services
that are available locally both in the public and private sectors.
For example, in establishing the hand made paper sector, local raw
materials in the form of water hyacinth or wastage from the garments
sector is used to make paper pulp.
6.
Market Linkages
The next step is to
establish sustainable linkages between the producer groups/clusters,
wholesalers, local retailers, national markets, and if possible with
exporters in order to ensure sales of the products. JOBS Bangladesh
constantly explores potential new buyers and markets to establish
comparative pricing of like products and to expand access to and
share of the potential sales.
7.
Policy and
Advocacy Services
JOBS Bangladesh is
cognizant of the importance in both business environment and
representation. Oftentimes, the reasons precipitating work in
private sector development are an unfriendly policy and regulatory
environment and / or inability to influence the direction of a
business sector due to the small size, geographical location, or
lack of awareness on the part of an enterprise.
With a thorough
understanding of a given sector, JOBS Bangladesh can act on behalf
of enterprises to influence policy and regulatory decisions in order
to benefit enterprise development. In turn, in order to provide
individual businesses greater strength, the cluster approach allows
a number of enterprises to come together, effectively forming a
lobby to advocate for them. Under JOBS Bangladesh, guidance and
support is provided at this stage to facilitate the transformation
from independent businesses to a larger group with common concerns.
JOBS Bangladesh
provides regular counseling and advisory assistance to the selected
producer groups/clusters. Monitoring tools are developed to
incorporate immediate objectives, outputs, and activities of the
project with verifiable indicators. Reporting formats are developed
to easily track the performance of the project and to establish a
database for producers. This process provides the information
necessary to ensure that the producer groups/clusters are receiving
the support they need and to maintain a baseline for communication
between all concerned stakeholders.
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