2010 MBL3 Research Report
Success Factors in Micro and Small Enterprises Cluster Development:
Case of Gullele Handloom Clusters in Ethiopia
A Research Report
Presented to the
Graduate School of Business Leadership
University of South Africa
In partial fulfillment of the
Requirements for the
DEGREE OF MASTER IN BUSINESS LEADERSHIP
By
HK HAILU
Student No. 71769064
Study Leader
Professor Philip AE Serumaga-Zake
Addis Ababa, Ethiopia
December 20, 2010
i
Abstract:
Taking the Gullele handlooms cluster development intervention program in Ethiopia as a case study, this paper tries to identify the critical success factors attributable to micro and small enterprises cluster development initiatives. To this end, document analysis, semi-structured interview, and focus group discussion methods are widely employed. It is found in the study that the development of strong trust within the cluster community, stability of key actors of cluster development, the existence of functional networks, adequate physical infrastructures, availability of raw materials, access to finance, the level of production technology and market promotion are essential factors in bringing success to cluster development. The study has also found out that in order to realize the contributions of these success factors within a specific cluster development program, macro level policy improvements, fostering valuable networks and relationships, and upgrading level of cluster concepts among various actors are of critical importance.
Finally, to sustain the benefits of cluster development efforts, cluster development agents should facilitate the macro and micro environment of the cluster keeping their interventions intact.
i
ACKNOWLEDGEMENT
This MBL thesis would not have been possible without the guidance and help of several individuals who in one way or another contributed and extended their valuable assistance to its preparation and completion.
I would,
Case of Gullele Handloom Clusters in Ethiopia
A Research Report
Presented to the
Graduate School of Business Leadership
University of South Africa
In partial fulfillment of the
Requirements for the
DEGREE OF MASTER IN BUSINESS LEADERSHIP
By
HK HAILU
Student No. 71769064
Study Leader
Professor Philip AE Serumaga-Zake
Addis Ababa, Ethiopia
December 20, 2010
i
Abstract:
Taking the Gullele handlooms cluster development intervention program in Ethiopia as a case study, this paper tries to identify the critical success factors attributable to micro and small enterprises cluster development initiatives. To this end, document analysis, semi-structured interview, and focus group discussion methods are widely employed. It is found in the study that the development of strong trust within the cluster community, stability of key actors of cluster development, the existence of functional networks, adequate physical infrastructures, availability of raw materials, access to finance, the level of production technology and market promotion are essential factors in bringing success to cluster development. The study has also found out that in order to realize the contributions of these success factors within a specific cluster development program, macro level policy improvements, fostering valuable networks and relationships, and upgrading level of cluster concepts among various actors are of critical importance.
Finally, to sustain the benefits of cluster development efforts, cluster development agents should facilitate the macro and micro environment of the cluster keeping their interventions intact.
i
ACKNOWLEDGEMENT
This MBL thesis would not have been possible without the guidance and help of several individuals who in one way or another contributed and extended their valuable assistance to its preparation and completion.
I would,