3.
Nucleus: Definition and Operating Mode
A
“Nucleus” is a circle of entrepreneurs (eg carpenters, hotels, exporters, women
entrepreneurs) within a chamber or association, which is moderated, organised
and accompanied by a chamber employed counsellor[1].
The
optimal size of a Nucleus is 12 to 30 entrepreneurs.
It
is important that the groups are sufficiently homogeneous, with the members
sharing daily life and work experiences but also sufficiently heterogeneous
enough so as to allow the entrepreneurs to exchange their different ideas,
problems and solutions.
Under the counsellor’s guidance the entrepreneurs start to
-
identify their subjectively perceived
problems;
-
determine their causes;
-
look for solutions within their group (motto
“entrepreneurs counsel entrepreneurs”)
-
start common activities in order to arrive at
further reaching ideas and solutions. These can also be lobby activities in
order to improve the economic framework conditions.
This results in the SMEs’ demand for services from bottom to top which in turn
influences the service providers’ supply of services offered.
Tried and tested instruments are:
-
to motivate and support SMEs in reducing
mutual distrust and in raising awareness of common features and potentials
by eg organizing visits and excursions;
-
to introduce participatory methods of
learning, group work, planning and organisation, “action learning” –
practitioners learn from practitioners –, benchmarking with the best
colleagues’ companies
-
to offer counselling services at workshops
instead of seminary rooms;
-
to promote upgrade training and practical
training for entrepreneurs as well as their staff;
-
to stimulate common events, purchases,
marketing activities, expositions and trade fairs, tenders for orders;
-
to initiate vertical and horizontal value
chains through linkages between different Nuclei[2].
The
possibilities are virtually inexhaustible; see the catalogues of activities
started by Nuclei.
4.
Organisational Development (OD) of business chambers
Chambers are founded primarily on the basis of problems perceived in the
entrepreneurial environment, which is to be improved by lobbying activities. In
developing countries it is often not known that chambers have a second core
function, i.e. providing services. This is what SMEs are most interested in
because they expect and require an immediate return for their membership fees.
If services not offered, most entrepreneurs are not interested in the chamber.
Efficient chambers and associations, being
elements of the meso level, can play an important role in the development of
local, regional and national economies. Projects of technical cooperation often
focus their promotion on equipment, on subsidizing running costs – especially
the salaries of fulltime employees, and on training of fulltime and honorary
staff. The assumption is, “Those who know more will act better.” However, due to
the institutionalised rotation of the leadership in chambers this approach to
their promotion is limited in terms of sustainability.
The
hypothesis of the Nucleus Approach is that sustainable OD change in chambers
occurs only if its members request qualitative and quantitative performance and
results from fulltime and honorary staff, if they claim ownership of the chamber
and if they actively engage themselves in its design.
Thus, the Nucleus Approach aims at influencing the relations among its board of
directors, staff and members. A single member usually has no forming influence
on the chamber. Members organised into a Nucleus, however, influence the chamber
directly as well as indirectly. Thus, a constructive field of tension develops
within the organisation: Once the Nucleus entrepreneurs experienced a certain
performance level of fulltime and honorary staff, chances are that they will
insist on this level to be maintained also after personnel changes. This means
that members, not external donors, provide an essential stimulus for the
activities of a chamber and its organisational development.
-
The foundation of Nuclei often is the first
real service a chamber provides for its members. With Nuclei, the chamber
becomes more attractive for SMEs and consequently can increase their
membership.
-
Nuclei with their counsellors require a new
type of staff in the chamber. This results in new leadership requirements at
management level.
-
Nuclei bring along new demands to the board’s
and the management’s quality and quantity of performance both in the field
of lobbying and in service provision.
-
New activities lead to changes in the public
relations work.
-
Growing membership requires organisational
changes.
From many small changes, all with their inherent dynamics, gradually an
organisational change process emerges which does not just lead to simple
adjustments of the governing paradigm but results in a new one: Now the chamber
no longer acts as a “business club” but as an efficient lobby institution and
professionally managed service provider.
This change process must be designed with a long term vision in order to have
sustainable impact. It often requires an entire new generation of fulltime and
honorary actors.
BDS
versus Nucleus Approach?
In the
international BDS discussion some argue that chambers should not supply
services themselves but leave it to commercial providers who could deliver
them more efficiently. The following arguments show a different view:
- In
general, an enterprise does not contact a commercial provider at first. The
risk is too high looking at the service costs in relation to sales and
profit. It is in addition difficult for the entrepreneur to identify
suitable specialists, because these tend to do what they know to do rather
than what is needed
–
what could be something completely different.
- The
counselling of chambers focuses on the one hand on many small issues, on the
other hand on accompanying search processes to identify business problems,
its causes and impacts. Sometimes it is not very well structured and an
unpurposive picking in the fog. A good business counsellor serves as sparing
partner in this process who supports the entrepreneur by confirming,
doubting and stimulating new ideas. In the case of bigger problems a
commercial BDS provider might be contracted as a second step.
- Therefore,
chambers and commercial BDS providers are not competitors but supplement
each other: On the one hand the chambers offer such services which are not
offered adequately by commercial providers for economic reasons in
sufficient quality and quantity. (e. g. counselling). On the other hand
chambers follow the rule not to compete with their own members – inclusive
BDS providers.
- “What
does not cost anything has no value!” Chambers do not provide their services
free of charge. The counselling costs are covered by the membership fee.
Therefore there are no barriers for the entrepreneurs to use the services
offered.
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