The OPSR is responsible for implementation of the Private Sector Development Programme (PSDP) which is jointly funded by the European Union and the Government of Saint Lucia. The main objective of the PSDP is to advance the process of economic diversification by assisting the private sector to become more competitive. Assistance is delivered directly to firms and through initiatives that are geared towards improving the general business environment to make it more conducive for businesses to operate.

The main mechanism for delivery of direct assistance to firms is through a three staged approach referred to as the Business Upgrading Project Cycle (BUPC).Stage 1 – Diagnostic Study; Stage 2 – Design of Business Plan and Stage 3 – Implementation of Business Plan. The main criteria for qualification for assistance are (a) firms must be formally incorporated and (b) that the potential beneficiaries of the Program are to be in business for at least three years.

Unfortunately as presently configured the PSDP does not adequately cater to the demands of enterprises in those categories. The dissatisfactions and frustration of those SMEs with the PSDP (BUPC) Approach, is already evident and will only increase under the CSME pressures if an appropriate response is not forthcoming.  In light of this reality there is an urgent need to introduce new mechanisms or approaches to meet the needs of SMEs, especially these located in the rural areas.

These enterprises that have been most often excluded from access are nevertheless extremely important economically. Those small and medium enterprises form the backbone of the economy and a significant proportion are located in rural communities where the decline in the banana industry has had the most marked effects. Many of these SMEs are owned and staffed by women so that they impact directly on the rural poor.

The Cluster Linked Incubator Model for Business (CLIMB) is therefore designed to respond to those needs.