ABSTRACT
This chapter explores the role of SMEs within clusters and the relative benefits that SMEs could gain from participating in a cluster. The essential assumption made is that SMEs can co-operate in clusters that provide for specialization, creativity and innovation while at the same time they can reap the benefit of being part of a larger entity. Individuals working within the cluster can more easily perceive market opportunities and unsatisfied customer needs around which they can build a business. An entrepreneur may exploit the networks, relationships and collaborations with other enterprises and research centres that are already established. Porter (1998) suggests that the linkages between the cluster members result in a whole that is greater than the sum of its individual parts. From the early nineteenth century to the present, the construction of a textile industry has provided industrialized regions everywhere with an apprenticeship in mechanical production.
