MSME · MSME

Clusters and clusters development

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Small and Medium Enterprises in India — Certificate Course on MSME.

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Q

What is an industrial cluster in the context of MSME development?

A

An industrial cluster is a geographic concentration of interconnected businesses, suppliers, service providers, and associated institutions in a particular field, linked by commonalities and complementarities.

Q

What is the Marshall's concept of external economies as applied to industrial clusters?

A

Cost advantages arising from geographic concentration of similar firms.

Q

Which government ministry is the nodal ministry for MSME cluster development in India?

A

The Ministry of Micro, Small and Medium Enterprises (MoMSME) is the nodal ministry for cluster development initiatives in India.

Q

What is an 'anchor unit' in the context of an MSME cluster?

A

A large firm that drives growth and linkages in the cluster.

Q

What is the Micro and Small Enterprises Cluster Development Programme (MSE-CDP)?

A

MSE-CDP is a flagship scheme of the Ministry of MSME that supports establishment of Common Facility Centres (CFCs), infrastructure development, and soft interventions to enhance the competitiveness of clusters.

Q

What is the minimum number of units generally required under MSE-CDP for a mini cluster?

A

At least 20 units to qualify as a mini cluster.

Q

What is a Common Facility Centre (CFC) in cluster development?

A

A Common Facility Centre is a shared infrastructure facility set up within a cluster to provide common services such as testing, quality certification, design, training, and machining to member MSMEs at affordable costs.

Q

What does 'horizontal networking' mean in MSME cluster development?

A

Collaboration among similar firms at the same production stage.

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