Micro and Small Enterprises Cluster Development Programme

The Micro and Small Enterprises Cluster Development Programme (MSE-CDP) is a Ministry of Micro, Small and Medium Enterprises programme that supports groups of enterprises located together and facing common constraints. Its central objective is to improve the productivity, competitiveness and sustainability of micro and small enterprises through collective facilities, infrastructure and capacity-building measures that individual firms may be unable to provide economically.

Core objectives

The programme addresses constraints shared by enterprises within an identifiable cluster rather than assisting each unit in isolation.

• It seeks to resolve common problems relating to technology, skills, quality, market access and production facilities.
• It promotes cooperation and collective action among enterprises, associations and other cluster stakeholders.
• It supports the creation or upgrading of industrial infrastructure in new or existing clusters of micro and small enterprises.

How the programme pursues these objectives

MSE-CDP combines physical investment with cluster-level organisation so that firms can obtain services at lower cost and achieve economies of scale.

• It supports Common Facility Centres for shared facilities such as testing, training, production processes and effluent treatment, according to cluster needs.
• It provides for infrastructure development, including the upgrading of facilities in industrial estates or areas accommodating micro and small enterprises.
• Capacity building and cooperation help enterprises use common assets effectively and undertake joint initiatives.

Economic significance

The cluster approach can overcome the disadvantages of small scale by pooling demand for technology, services and infrastructure. This can improve product quality, reduce unit costs, encourage formal cooperation and strengthen the ability of micro and small enterprises to compete in domestic and export markets.