Industrial Clusters and SME Promotion in Developing Countries

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SMEs make up the bulk of enterprises in developing countries and make a significant contribution to employment and economic growth. This paper takes stock of best practices in industrial clustering and SME promotion in Commonwealth developing countries. It provides examples of cluster formation, policies to stimulate cluster development and guidelines for business development services for SMEs.



Delivering Business Development Services to SMEs

The examples described in the previous section, as well as decades of experience in development assistance, indicates that there are certain principles that should be followed in developing such an infrastructure (ILO 1997). It is particularly important to recognise factors which limit SMEs' use of such services, so that means of overcoming these factors are identified and implemented.


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