Wednesday, October 22, 2014

YUMBO ENTERPRENEURS, MEN OF FEW ALLIANCES

    The Pacific Pound Point, Yumbo and Industrial Zone Icon

INTRODUCTION TO THE STUDY CASE
Yumbo is the oldest and one of the most relevant industrial zones in Colombia. Currently there are located 461 big companies. Why? for its advantageous geographical position (close to a maritime port (Buenaventura) and to the airport), good road infrastructure and municipal tax incentives. These reasons together with an increasing urban growth and the high possibility to access the national market were and still are fundamental to attract foreign investors (1).

The entrepreneurial sector in Yumbo is apparently well organized; in 1982 it created FEDY, which is the Entrepreneurial Foundation for Yumbo´s Development. This is a non-lucrative organization that aims to improve the life quality of the inhabitants by promoting, leading and executing social, economic, political and cultural development in a cooperative network between the government, firms and the community. Business management is one of the working branches of this entity, which projects have been related to topics such as road infrastructure, public services, environment, mobility, security, local taxes and municipal development plan. Recently it is working in a project called PREZI that aims to improve the regional infrastructure to avoid damages from floods (4). It is also coordinating the MEPY, an entrepreneurial table pro-Yumbo to support local government plans (2).
Although less common, there are also strategic connections related to products and their production processes. For example, companies such as The Paper Producer S.A., Propal and Colombian Cardboard strategically set in the region to produce paper from the sugar cane bagasse, which is the prime culture of the entire state (Valle del Cauca). The local government currently allocates around €117000 to the promotion of associations and alliances for entrepreneurial and industrial development (1). Public information of these alliances is not easily available.
In spite of all previous information, in May of this year was published an article titled “Yumbo Enterpreneurs, men of few alliances”. In here is concluded that “Yumbo´s entrepreneurs are not prompt to strategic alliances (49%), neither go to the academy in search for innovations. Most don´t know the governmental entities that can boost their new ideas; they look for alliances only to have access to financial resources” (3).
In October of 2012 the entrepreneurial sector and local government signed The Agreement for Transparency, where all actors committed to work for Yumbo´s development under ethical parameters that allows the achievement of common goals (2). This clearly shows there is an evident lack of trust mainly between entrepreneurs and the local government that needs to be reestablished for the good of the whole region.

WHICH TYPE OF NETWORK IS THIS?
Yumbo industrial zone seems to fit better into the coordination mechanism of private interest and government, because the entrepreneurial sector is constant compared to the changing local government. There is a constituted entity even physically located (5), that represents the sector (2).
However the relations created within this network are not based on material, energy or knowledge exchange, and even though there is not enough information to clearly explain the relation of Yumbo firms with external parties, it can be assumed there are many, as in most cases the consumers and providers are located out of the region/system(3). This network is mainly based on the creation of value as FEDY´s projects are especially about social responsibility. Also, around 60% of the companies were or are in the process of ISO certification to fulfil environmental standards and industries’ grouping is stimulated by issues such as public security.  
There is a slight reference to a network based on rule construction, as there is one that avoids selling properties bigger than 300m2 and only 30% of it can be built; the remaining 70% must be restored and or preserved (4). This is an obvious restriction to the establishment of new companies but is being reassessed.

INDUSTRIAL ECOLOGY OR INDUSTRIAL COOPERATION?
Personally, this type of network doesn´t fit tightly into any of the categories given by Gordon and MacCaan (2000). It is an agglomeration because the region offers good conditions for industrial development and entrepreneurs come together to solve common issues like road infrastructure, public services and local taxes. It is a social network because social responsibility is a feature of every project, by directly promoting training and employment and indirectly by common issues mentioned above. The industrial cluster is the less evident from the three categories and owing to low trust this information may not be found on the web.
As an Industrial Ecologist I would find both, constrains and advantages from the current situation. Constrains because of the very few material-based connections. I wouldn´t assure this is  to avoid dependence, it simply seems that firms don´t know their neighbors, at least in terms of their internal processes, less on their by-products and their possible use. They are reserved, their innovations come from their own employees and don´t trust the local government to support them.
The great advantage is the clear starting point for a future implementation of the field of Industrial Ecology; this is FEDY. Its background together with the current projects can prepare the network for a stage that focuses on internal potential connections and the settlement of new resulting industries.  

  
References:
  1. http://www.yumbo.gov.co/portalcamy/index.php/indus
  2. http://www.fedy.org.co/alianza-empresarial-por-yumbo.html
  3. http://www.eltiempo.com/colombia/cali/investigacion-de-caracterizacion-de-tejido-empresarial-de-yumbo/14024736
  4. http://elpueblo.com.co/el-pezi-y-yumbo-una-apuesta-al-futuro-industrial-del-valle-del-cauca/
  5. https://www.youtube.com/watch?v=EXoQ1CmxvcA

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