Cluster-Based SME Development: An Approach to Achieve Vision 2021

Abstract

The small and medium enterprises (SME) are familiar as the engine of growth in developing economies. They are helping in economic development from two dimensions, firstly by producing goods/services and secondly by employing more labour with comparatively low investment. Employment generation and the gross domestic product (GDP) growth both are very much important for sustainable development of an economy.

Bangladesh has been maintaining 4.0-6.5 per cent GDP growth during the last two decades. However, it experienced several downturn of GDP growth in the same period. But we do not know why this downturn occurred. Sometimes we blamed natural disasters, political unrest and so on. But we actually never try to find out the real cause and take action to avoid any further downturn. As a result, till now we are in and around 5.0-6.0.

Keywords: Cluster Development, Industrial Development, Industrialization, SME Clusters in Bangladesh