5. Clusters and Networks
Informal or formal development of business clusters and networks to provide a focus for business development within the community They provide support for individual business owners, while maximise marketing spend and routes to market for each business. These can be developed on an area basis related to the “sense of place” of the community, where common characteristics can be applied to products being sold from the area or used to attract customers to the area in the case of tourism. Equally sector led clusters allow for the development of centres of innovation and expertise to grow in areas of specialist knowledge which can reduce costs, attract expertise and provide marketing advantage
In more rural areas it is often more difficult to form and sustain formal networks and links between local businesses. All of the rural enterprise development projects that we have drawn on have shown that where these links can be made very great benefits have been accrued for existing businesses, new business development and the wider community in economic development. The learning shows that these are strongest when led with passion from inside the community as in the Sirolli model as it was applied in Kintyre in Scotland and in Ballyhoura Ireland. However, they can also be effective if initiated outside the community if they are handled pragmatically and are usually adopted by the community once the benefits start to be seen.
One of the benefits of building a local business network and fostering links between businesses is
the development of business clusters. This is when
businesses come together to form a partnership which benefits all the businesses concerned by enabling them to reach more or different customers, provide an increased range of services or provide easier access for customers to their products than they would be able to do individually.
The development of cohesive marketing strategies for local areas is
demonstrated by the work done in Pembrokeshire to develop the Saudersfoot Chamber of Tourism, where over
70 participants collaborate in event
organisation and advertising to present a village for all seasons. It can also be seen in 'buy local' campaigns which have been incorporated by a number of the projects.
The Dolenjska Tourist Cluster, in Slovenia, represents a union of 6 partners from tourist sphere and aims to develop, promote, expand and merge active and potential tourist offerings in the whole region of Bela krajina in Slovenia. Established in 2004 the partnership began by developing an integrated tourist strategy and marketing plan for the cluster based on the SWOT analysis of the region and the production brochures and a website to promote the whole area; followed up by a number of specific programmes focused on different areas of the tourist offering.
Business clusters can also be developed to take advantage of joint purchasing opportunities or to put great product ideas in touch with the right manufacturing facility as in Mona Bauhaus example in Anglesey where, following an analysis of the resources and culture of Anglesey and existing products, a programme of
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