ODOI

Networking offers an important route for individual SMEs o address their problems as well as to improve their competitive position. By co-ordinating their activities enterprises can collectively achieve economies of scale beyond the reach of small scale firms and obtain bulk purchase inputs, achieve optimal scale in the use of machinery and pool production capacities to meet large scale orders. Inter enterprise co-operation also enables SMEs to specialise in their core business and give way to an external division of labour thus improving their efficiency in production. Joint work also encourages enterprises to learn from each other exchange ideas and experience to improve product quality and take over more profitable market segments.

Evidence also shows that co-operative relations and joint action are more likely when enterprises operate in proximity and share business interests such as markets for products, infrastructure needs or challenging external competition. Within such groups or clusters, enterprises joint initiatives are stronger because of the critical mass of interested parties, more cost effective due to shared fixed costs an easier to co-ordinate with proximity fostering mutual knowledge and trust.

The programme shall aim at Organisation and development of clusters, Development of networks of SMEs, Development of strategic linkages between SMEs and academic institutions promoting innovation and strategy interested in working with SMEs on cluster development

The steps involved would be building trust, constructive dialogue among cluster actors exchange of information, identification of common and strategic objectives, agreement on a joint development strategy and systematic and coherent implementation.

In the case of promising clusters in assembly constituency programme shall be initiated if an academic /research canter of excellence and SME cluster show interest and aptitude. All these are sought to be implemented through the centralised ICT platform build by K-DISC.