SME Cluster Development Key to Speedy Industrial Growth

5 Pages Posted: 6 Mar 2015

Date Written: March 5, 2015

Abstract

The small and medium enterprises (SMEs) are the prime movers of any economy around the globe. These enterprises are considered as engines of growth. All countries are trying hard to develop entrepreneurs, promote SMEs and facilitating their graduation into large industries for rapid industrialisation.

Economists, development workers and innovators have prescribed different tools, techniques, methods and approaches for SME development around the world based on size, capacity and features of the economies. For example, Japanese 'One Village One Product' and Chinese 'One Region One Industry' and Michel Porter's Global Village are widely-known approaches of SME development.

Currently, cluster-based SME development is a popular approach for entrepreneurship development, SME promotion and industrialisation with a view to facilitating employment generation and poverty alleviation around the world. It could be the most effective, economically viable and maximum output-oriented SME development approach for Bangladesh.

Why should we go for cluster-based approach? How many entrepreneurs are there in all the SME clusters in Bangladesh? The answer is that it is cost-effective to support hundreds of entrepreneurs at a particular location than that of hundred different areas. Ensuring infrastructure development, industrial utilities supply and maintaining law and order situation in a particular place are comparatively easy, economically viable and less time-consuming. There are a large number of SMEs located in the BSCIC Industrial Estates. There are also many clusters where the BSCIC estates are somehow part of those clusters. For example, the Coconut Oil Manufacturing Cluster is located at Bagerhat Sadar. There are some factories of coconut oil located at Bagerhat BSCIC Industrial Estate. Thus, majority of Bangladeshi SMEs (manufacturing units) are located in clusters.

Keywords: SME Cluster; SME Development; Cluster Development; SME Cluster Development in Bangladesh

Suggested Citation

Abdin, Md. Joynal, SME Cluster Development Key to Speedy Industrial Growth (March 5, 2015). Available at SSRN: https://ssrn.com/abstract=2574088

Md. Joynal Abdin (Contact Author)

DCCI Business Institute (DBI) ( email )

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

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