Transcript SME DEVELOPMENT- CLUSTERS AND INITIATIVES






Cluster development as an approach to industrial
development has been successful in countries like
China, India, South Korea, Malaysia
In at least 50 developed and developing economies
clustering phenomenon is visible
It is acknowledged in our Industrial Development
Policy 2012-2016
Can have direct impact on poverty reduction,
generating employment
Can increase productivity and competitiveness of
SMEs





Geographical proximity
Same line of business or complementary
business
active channels of business transactions,
communications and dialogue
share specialized infrastructure, labour market
and services and
they are faced with common opportunities and
threats.






Geographical proximity
Sectoral specialization
Close inter-firm collaboration
Common infrastructure
Common opportunities
Common threats






Common procurement of inputs
Greater bargaining power with customers
Greater presence in the market place- critical mass
to achieve economies of scale
Enhanced possibility of securing or sharing big
contracts
Easy provision of business development support
services therefore enhanced effectiveness and
collective efficiency
Sharing of risks, and other critical resources e.g
manpower, equipment, technology, training
facilities







Leather work
Furniture making
Dairy farming
Metal fabrication
Clothing and textiles
Agro-processing
Retail- flea markets

Methodology
Selection of a cluster based on importance, viability
and sustainability
 Diagnostic study
 Trust building
 Action plan
 Implementation
 Monitoring and Evaluation





Lack of dedicated financial support
Limited appropriate infrastructure and work
space
Lack of knowledge of cluster concept and
benefits by SMEs- unwillingness to collaborate
Lack of technical support(technology,
expertise)
•
•
•
Formulating and implementing MSME
development policies.
Developing legal and regulatory framework
for SMEs development
Promoting, coordinating and monitoring
innovative financing schemes for SMEs.





Providing technical skills and management
training that support entrepreneurship and
small business growth
Facilitating linkages between large scale
enterprises and SMEs
Business consultancy services to SMEs
Research into investment and marketing
opportunities for SMEs
Facilitating
provision
of
appropriate
infrastructure to SMEs