Micamericas

Oct 15, 2008

SERCOTEC Inspires Growth and Competition

Award for Excellence in Enterprise Development Services

By Lucy Conger

On the northern coast of Chile, in the bay of Tongoy, fishermen raise the northern oyster. Not long ago these fishermen plied their trade on the high seas, but today more than 100 of them breed their catch in cages suspended in the ocean. The fishermen belong to seven companies that form a consortium, the Holding Bahía Tongoy. Working together, these small businesses have improved the quality of the oysters, created a marketing company and obtained certification for selling the oysters in Europe.

By learning aquaculture, upgrading their product and marketing as a group, these fishermen can now export to Brazil, Europe and French Polynesia. They are actively participating in an expanding market that has increased 15 fold since 1990.

The shift from traditional fishing with its safety risks and variable yields to modern fish farming techniques was achieved through a close working relationship between the fishermen and Chile’s business development agency, Technical Cooperation Services (Servicio de Cooperación Técnica in Spanish), or SERCOTEC.

In 2008, SERCOTEC won the IDB Award for Excellence in Enterprise Development Services, which was presented during the XI Inter-American Forum on Microenterprise in Paraguay. The award recognizes SERCOTEC’s success in helping 85 percent of their microenterprise clients improve their productivity and satisfaction ratings.

Holding Bahía Tongay is a shining example of SERCOTEC’s services meeting its goal to make micro and small businesses more competitive. SERCOTEC’s technical advice encourages associations of small producers, artisans and service providers to offer volume and gain negotiating power in the market, and participate in business information and support networks.

In other key sectors for micro and small businesses, SERCOTEC  assists with product design and promotes the formation of craft and trade associations with manufacturers of wood furniture, handicraft producers and small-scale merchants. The agency also works with small hotel operators to upgrade their services and position their regions as attractive tourist destinations.

“We carry out an ongoingprocess of listening to the needs of our clients.  And we also watch how micro and small businesses participate in the market – how they are seen, from what perspective, what their difficulties are – to determine how to further strengthen the businesses that are already strong, so we can consolidate the microenterprise sector in Chile,” says Cristina Orellana Quezada, SERCOTEC’s managing director.          

Founded in 1952, SERCOTEC works to improve the competitiveness of micro and small businesses by developing skills in professional management, computers and networking among entrepreneurs, on one hand.  They also support the formalization of businesses and stimulate the creation of business groups or clusters. SERCOTEC co-finances and mobilizes training and technical services needed to develop micro and small businesses and leads several public agencies in developing business clusters.

SERCOTEC’s strong reputation in business development is based on the range of its activities and its professionalism. The agency has a “broad menu of services,” says Juan Llisterri, an IDB expert on micro and small enterprise. “It has known how to renew its services according to the demand of enterprises and evaluates its work.”.

SERCOTEC has a nationwide training program for women that teaches skills to develop their microenterprises. It has also expanded access to credit for microenterprises by subsidizing bank loans and making grants of $6,000 through its Seed Capital Fund, an annual competition for microenterprise projects.

A new training program launched in 2008 teaches microentrepreneurs how to browse the internet and identify useful portals, research marketing tools, and use online business platforms. Microenterpreneurs have free internet access at SERCOTEC centers equipped with computers.

After Michelle Bachelet took office as President of Chile in 2006, SERCOTEC redefined its strategy to further support promising microenterprises with opportunities to grow in their sector or enter a niche market. This strategy places a priority on working with business owners who have a competitive spirit and persistently seek opportunities for growth. SERCOTEC is promoting microenterprenuers who recognize the importance of networks and formal banking, use information technology, know their cash flow, have informed management skills,seek technical advice, and know their market. Subsistence microenterprises that provide livelihoods, but fail to expand, are no longer a priority of SERCOTEC, which seeks to encourage highly motivated entrepreneurs.

Award's Finalists

- Compite (Mexico)

- Financiera Nicaragüense de Desarrollo (Nicaragua)

- Prosede/INDE (Nicaragua)

- SEBRAE (Brazil)


The Inter-American Development Bank is not responsible for the editorial content; the views expressed in the article are those of the author.

Also available in: Español