Cluster Based SME Development: Could Be an Effective Tool For Industrialization

Abstract

SME clusters in most of the LDCs are naturally grown based on availability of raw materials, relevant skills, supply chain advantages, markets demands etc. reasons. They are scattered located throughout the country with existing resilience to face adverse condition. Therefore government’s little interventions can result in a massive boom in these clusters. Clusters are creasing self-employed entrepreneurs, generating employment for the workers, technicians, managers, and other relevant professionals. Contributing in increasing GDP growth and poverty alleviation of the country. On the other hand due to a particular geographic location it is easy for the government to supply all sorts of industrial utilities into it. So cluster based SME development could be an effective tool for employment generation, poverty alleviation through industrialization of a country.

Keywords: Cluster Based SME Development; SME Cluster Development; Industrialization through SME Development

JEL Classification: C38, O14, O16