Cluster-Based Development Spurs Industrialization

3 Pages Posted: 30 Oct 2013

Date Written: October 30, 2013


'Cluster' is a concentration of interrelated industries in a particular geographical location. In Bangladesh, the SME Foundation has adopted a definition of clusters: "A Cluster is a concentration of enterprises producing similar products or services and is situated within an adjoining geographical location around a 5-kilometre (km) radius and having common strengths, weaknesses, opportunities and threats" (SME Clusters in Bangladesh).

According to a recent study, there are 177 clusters in the country. As many as 69,902 enterprises in the clusters employ 1,937,809 workers. The Handicraft and Miscellaneous sectors have the maximum number of about 38 which is 21.5 percent of clusters, followed by the Agro-Processing/Agri-business/Plantation sector, Light Engineering and Metal Working sector, Knitwear & Ready-made Garment sector, Fashion Rich Effects, Wear & Consumers Goods sector, Leather Making & Leather Goods sector, and Handloom & Specialised Textiles sectors with about 34, 31, 22, 16, 13 and 10 clusters respectively throughout the country.

Keywords: Clustering, Cluster Development in Bangladesh, Industrialization, SME Cluster

Suggested Citation

Abdin, Md. Joynal, Cluster-Based Development Spurs Industrialization (October 30, 2013). Available at SSRN: or

Md. Joynal Abdin (Contact Author)

DCCI Business Institute (DBI) ( email )

DCCI Building (11th Floor), 65-66 Motijheel C/A
Dhaka, 1000

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