Small firms advised to consider licensing, partnerships as marketing tools

Companies with great products but limited capacity and market reach should seriously consider partnering with large companies to drive their business, says UWI academic Dr Densil Williams.

But he cautions that such commercial outreach should start after the companies have taken steps to protect copyright, and patents and trademarks are secured.

Williams, who is the head of the Management Studies Department at the University of the West Indies, said small firms should enter the export sector so that they can make a greater contribution to GDP.

Where possible, he said, the companies should seek the help of state agencies like JAMPRO, but they should not shy away from building commercial ties with more powerful firms that already have networks in foreign markets.

"Many companies have gone international but only a few of them have gone international on their own," said Williams at JBDC/UWI Business Centre forum on micro and small business contribution to economic growth at the university campus last Tuesday night.

value chains

"Look at Costa Rica," he said, "many small firms have gone international based on value chains. Very few firms in the world can go international on their own because it takes a lot of resources."

Management Studies lecturer Dr Khan Knife, who supports the approach, says small business owners must be willing to give up some amount of ownership in the business.

But recognising that small firms may be at a disadvantage if this partnership is not "negotiated properly", Williams advises that small operators use the "existing support system and government organisations" such as the JAMPRO, Jamaica Intellectual Property Office (JIPO) and Jamaica Business Development Corporation (JBDC) to facilitate the process of getting their products to market.

"Use the machinery that is there. You don't expect to pick up yourself, book a ticket to London, United States, or Japan, to go look for (investors). This is where policy support comes in now to help you connect to the people you need connecting to," said Williams.

Carol Simpson, executive director of JIPO, is advising that business owners seek legal help to register a trademark. Small companies don't always need to be thinking how to sell the product but should consider licensing it to others to market.

marcella.scarlett@gleanerjm.com