Rural MSME Cluster Net

About Solution

• Isolated entrepreneurs who are in the same sector were viewed as competitors and personal enemies, such rural entrepreneurs build trust, dignity and self confidence as a group, collectively identify their problems & determine causes, look for solutions by themselves, from outside and collective actions leads to perform business continuity without any breakdown.

• Cluster members have the knowledge and skill to improve their family livelihoods to micro businesses to compete at national and international market. They are awareness in quality system and management, such as HACCP, ISO standards, NTM & NTB, HS code, productivity, bar cord, packing, financial literacy etc, at free of charge and negotiate reasonable price from Federation of Chamber of Commerce & Industry of Sri Lanka (FCCISL), ILO SIYB, Export Development Board NGOs and private BDS providers. 86 required trainings and industrial exposure visits were successfully completed during last 3 years for selected clusters members, thereby improving quality of products and trade.

• Though they are economically poor, being cluster entrepreneurs they had chance to price & check quality for bulk purchasing of necessary agricultural inputs and other raw material (25% discount for fertilizer), selling prices, acquire extension services from governments and sign forward sales agreement with consumers and buyers. Examples are cluster of mushroom growers, garment manufacturers ect. Both rural entrepreneurs and buyers have been able to achieve win
win situation through effective new and existing value chains. This has helped urban consumers to buy quality fresh product at affordable prices.

• Entrepreneur clusters are networking with similar and or different clusters and it helps them develop new business links among them. Ex: livestock farmers
yogurt producers
traders. Clusters have networked under Kegalle District Chamber of Commerce, Industry & Agriculture (KDCCIA). So this, KDCCIA provides information and opportunities to network with 26 regional, national and international chambers of commerce. Similarly, successful rural entrepreneurs have been able to participate in national and international trade shows/ exhibitions to introduce their products to new markets. Women and youth have developed innovative products and fair and effective national and export market linkages with new buyers. Ex: clay handicraft jewelry and compact coir bricks produced by women are exported to Japan.

• Buyers communication with rural clusters and government have enhanced rural youth and women life & vocational skills and reduced unemployment of them through product manufacturing outsourcing.

• Needs Lanka has educated and connected with cluster members by means of available internet-based business networks via their Smartphone and e-money transfer. 446 cluster members interactions (handicraft, fragmented oil, cinnamon and Elephant-dun paper clusters etc) B2B, B2C linkages via available social networks, Sri Lankan based “coad360” and

• Rural MSME clusters with and all other stakeholder networks have been able to resolve identified rural infrastructure issues likes tube water well, foot path and culvert ect, under their CSR and effective lobby events for unresolved rural business issues with provincial policymakers – Ex; pottery makers clay transport barrier



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