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SME Cluster Development
Clusters are geographical concentration of enterprises which produce and sell a range of related or complementary products and are, thus, faced with common challenges and opportunities. Cluster development is basically supporting and strengthening the clusters by creating networking among the stakeholders to reduce the cost of doing business, bringing them on a single platform for more voice among policy makers, create new business opportunities, reducing risk of doing business and capacity building of the enterprises. Cluster development has also proved its contributing in employment generation and poverty reduction worldwide.
Worldwide, one of the most widely used practices to support industrial clusters is provision of Common Facility Centers (CFC). The establishment of CFCs is an integral part of SMEDA’s Cluster Development activities. So far SMEDA has been able to establish following CFCs with Chambers of commerce and industry and industry/trade associations:SME Clusters in Pakistan have huge potential and critical to SME growth. SMEDA has always been fully cognizant of the significance of Cluster Development and has taken several initiatives. These initiatives includes Technological Up-gradation, establishment of Common Facility Centers(CFCs) , access to Formal Finance for SME clusters, Marketing support, Improving HR skills and Awareness on International Certification & Regulations.
Credit is life line for any running business including SMEs and realizing the potential in SME sector and its importance, SMEDA has successfully launched following financing schemes in Punjab:
The proposals for following CFCs were prepared and submitted to Govt. of Punjab. The Planning & Development Department-Punjab has approved these CFCs and allocated Rs.100 million for the year 2005-2006. The construction of buildings ad procurement of machinery and equipment are under process.
Besides above program SMEDA is also working in cluster profiling, marketing support to cluster stakeholders and training to skills enhancement for SMEs as well as rural clusters.
SMEDA in collaboration with PSIC and UNIDO has started “Cluster Development Program for SMEs in Punjab”. The objective of this program is to help in developing seven different SME clusters of Punjab. The Diagnostic Study of these seven clusters has been completed. In the next year action plan would be implemented. Besides these clusters, SMEDA is also working exclusively with UNIDO in four clusters i.e. Sports Wear Sialkot, Auto Part Lahore, PVC Pipes & Plastic Products Lahore and Marble & Granite Rawalpindi/Islamabad.