
Role of Small and Medium Enterprise Clusters in Urban–Rural Linkage: A Study Based on Manufacturing SMEs of Khulna City, Bangladesh.
Category:- Journal; Year:- 2021
Discipline:- Business Administration Discipline
School:- Management and Business Administration School
Abstract
This study explores the role of small and medium enterprise (SME) clusters in urban–rural linkages, an
increasingly acceptable strategy in policy planning for regional development. As this approach to development has mostly been studied from a macro perspective, there is paucity of research from a micro
perspective, particularly in the context of Bangladesh. This study, thus, aims to explore the contribution
of manufacturing SME industry clusters in linking urban and rural regions. The data used in the study
has been collected from 119 SME entrepreneurs using a structured questionnaire. Factor analysis and
logistic regression have been applied to explore the contribution of industrial clusters in urban–rural
linkages, focusing on the city of Khulna as the study area. The findings show that such SME clusters can
positively contribute towards linking the two territories through two main forces, namely, funds and
mobility. The findings provide useful insights for policymakers and urban planners to take initiatives for
identifying and developing such SME industry clusters instead of focusing on the development of large
industries, both in urban and rural areas to enhance balanced regional development. In highlighting the
contribution of SME industry cluster as a micro level actor in the process of urban-rural integration, the
study aims to make a meaningful contribution to literature in the field of development planning.