Strengthening Clusters Virtually

The last post referred to how clusters strengthen neighborhoods. This article builds on that concept, however from a technology perspective.

The State of Oregon has partnered with a crowd funding resource to help small businesses obtain funding. This is not free money. Start ups are eligible. Companies must obtain an endorsement. The entity endorsing the company vouches for it. The loan is offered at zero percent interest, but must be repaid in a specific time frame. Funding comes from many sources. An investor can contribute a very small amount if desired. This is a good resource for companies or nonprofits that need capital, but it requires the company to have a solid business plan to ensure the loan will be repaid.

There is also an entity in Oregon that is fee based. This allows companies and nonprofits to come together and help each other. The average loan is $6700.00. Like any other service there is a structure and a process.

Now lets apply these two discoveries to the concept of clusters. What if churches, groups of like-minded nonprofits or businesses shared resources. Imagine a virtual market place which could strengthen your cluster can use to obtain goods and services, small amounts of financing for capital needs or shared consulting services.  Eighty percent of wage earners in Oregon are employed by small businesses. A strong local infrastructure based on clusters is one method.

Resource Sharing. Part 4

Finance and administration is tasked with setting and monitoring a project, program or operations budget.  The procurement officer or contractor requests bids for special projects such as building renovations, equipment acquisitions, service contracts, and building repairs. This finance and administration group also tracks hours, compensation and benefits.

A smaller nonprofit may depend on revenue from a large fundraiser such as an auction, but lack sufficient resources to manage the financial aspects.  A resource sharing agreement might be activated to access extra help handling financial transactions and final accounting to reconcile accounts.  

In the case of small business the team communicates with logistics and planning regarding how much money is allocated, and how much is remaining in the budget. They may need to ask a section to cut expenses to prevent cost overruns. If a business needs but cannot financially sustain a salary for a full time procurement officer, a solution might be for three small businesses to fund one part or full time salary. Conversely, one organization may have the funds to support a full time procurement officer, but may benefit from the added compensation a resource sharing agreement might provide if there are seasonal or cyclical downtimes.