MSME · MSME · Chapter 8

Clusters and Cluster 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 a cluster in the context of MSMEs?

A

A cluster is a sectoral and geographic concentration of enterprises that produce and sell related or complementary products, facing common challenges and opportunities.

Q

What is the full form of MSE-CDP?

A

Micro and Small Enterprises Cluster Development Programme

Q

Which four key features define a cluster?

A

Geographic proximity, sectoral specialisation, linkages between firms and support services, and common challenges and opportunities such as shared access to labour, raw material, technology, and market.

Q

What is the full form of SFURTI?

A

Scheme of Fund for Regeneration of Traditional Industries

Q

Why is clustering considered highly significant for small enterprises?

A

Clustering is the single most effective market-access, technology-diffusion, and credit-outreach mechanism available to small enterprises.

Q

What is the full form of IIUS?

A

Integrated Infrastructure Upgradation Scheme

Q

What are artisanal clusters and which industries do they cover?

A

Artisanal clusters are geographically concentrated groups engaged in handloom, handicraft, pottery, leather, and jewellery production.

Q

What does SPV stand for in the context of cluster development?

A

Special Purpose Vehicle

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