Potential Cluster Regions for Manufacturing Small and Medium Enterprises in Khulna City of Bangladesh: A Spatial Examination

Abstract

Industrialization is considered as the main path towards urbanization and economic development. Small and medium enterprises (SMEs) are the major contributor to the industrialization in many countries across the world. Cluster approach has gained extensive acceptance among academics and policy makers as an effective development strategy both for an industry and a region. This study thus aims to identify the potential cluster regions (PCRs) for manufacturing SMEs in Khulna city of Bangladesh since such identification is an important first step for cluster-based development strategy. Locating and mapping key manufacturing SMEs and exploring their spatial pattern are the major objectives of the study. The study concentrates on applying geo-statistical analysis such average nearest neighbour index, kernel density plot and SME distribution mapping using GIS to find the spatial pattern of the industries in the study area. The study depicted a clustered spatial pattern and uneven distribution of the SMEs across different wards of the city.