Cluster Development for Metal Work Industries: Case Study on Addis Ababa Micro and Small-Scale Metal Work Industries
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Date
2011-11
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Addis Ababa University
Abstract
The contribution of micro, small and medium Scale industries towards employment generation, alleviation of poverty and inequalities and development of backward areas is recognized worldwide. Although, these industries have great role in economic development of our country, they doesn‟t benefit as their potential due to their problems related to their size. Most of the problems are lack of: market, skilled manpower, working capitals, information and low level of competitiveness. In addition there is lack of cooperation among themselves, which limits sharing of resources between them. Micro and small industries clustering is a group of these industries, producing similar products, located in a geographical proximity, sharing resources (like knowledge, technology etc) among themselves in order to overcome their internal and/or external challenges, and that compete each other but also cooperate with one another. The study is concerned on cluster development of micro and small metal work industries in Addis Ababa city. It covers 32 micro and small scale metal work industries selected from all sub cities with the objectives of developing micro and small metal work industry cluster to create a conducive environment for the development of inter-firm cooperation, improve the competitiveness of the industries, to solve marketing problems of the industries, and to facilitate metal work technology transfer to the country. For the accomplishment of the objectives of the study the selected industries were assessed through questionnaires, interviews and observation. The results obtained from the survey shows that Addis Ababa micro and small metal work industries faced with the following problems. These were:- lack of: market, product displaying area (marketing area), working capital, technical training, trust among the metal working industries; and flexibility of price and quality of raw materials. In order to solve the observed problems with the support of published and unpublished literatures the study proposed the development of micro and small metal work industry cluster and identifies suitable cluster location in the city. Taking into consideration of other countries experiences, for realization of the benefits of developed metal work industry cluster it should be suggested that to properly cooperate all collaborators of the cluster.
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Metal Work Industries, Cluster Development, Micro and Small-Scale Metal Work Industries