Taking into account the characteristics of globally acceptable definition and considering the current socio-economic context of Bangladesh, a more elaborate and acceptable definition was formulated upon completion of desk research and consultation process i.e. “A Cluster is a concentration of enterprises producing similar products or services and is situated within an adjoining geographical location around 5 km radius and having a common strengths, weaknesses, opportunities and threats”.
Key criteria selected to define a SME cluster are as mentioned below:
• Products or services should be similar or homogenous along with related products
• Enterprises must be production or service units
• Number of units: 50 and above
• Adjoining geographical location: several villages, wards, unions and industrial estates
• Scattered within an area of 5 kilometer radius
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