Formation Of SME Clusters

Micro and small enterprises are major resource for our economy and employment. Their contribution is high in exports, Industrial production and to GDP. But unfortunately these MSEs are facing major challenges to overcome the competition from the large enterprises and ultimately give up. To overcome these challenges MSEs of the same sector combining to form clusters.

According to SIDO “Clusters are defined as sectoral and geographical concentration of enterprises, particularly, small and medium enterprises, faced with common opportunities and threats”. The government is taking so many measures or initiatives to the formation of clusters and to develop the small enterprises.

In India, there are around 400 SME clusters and around 2000 artisan clusters have been formed and distributed all over India. These clusters are contributing 60% of the manufacturing exports. The clusters of Surat, Mumbai, Chennai, and Kolkata are contributing major share of exports in specific products ranging from traditional to highly modern products.

The central government, state government, National Support Institutions, and other institutions have taken up cluster development initiatives to provide technological, financial, marketing and infrastructure support.

By forming clusters the micro enterprises are benefited in many ways like becoming more competitive in the global environment, enhancing access to global markets, safeguarding intellectual Property, promoting small-Scale and cottage Industries, improving links between small and large firms and increasing Exports.

Suggested Reading:
Micro – Franchising in India
Growth of MSEs in India
How To Find If A Firm Is Micro Enterprise In India
Development measures for MSEs in India
Significance Of Micro Businesses In India
Government Owned Business in India

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