Abstract
PurposeThe purpose of this study is the empirical measurement and analysis of economic size and performance of dispersed and clustered small‐scale enterprises (SSEs) in India.Design/methodology/approachMethodology is descriptive and comparative, using a combination of different official databases. Economic size is measured by distribution of SSEs by employment, output, fixed capital investment, and export variables. Measurement of economic performance is focused on output/capital ratio, output/labour ratio, and labour/capital ratio.FindingsThe results offer evidence for economic diversity in the size compositions and performance variations of dispersed and clustered SSEs; and bigger economic size and higher economic performance of clustered than dispersed SSEs.Research limitations/implicationsSubject to the comparability of economic structure, the results and implications for India are of relevance for promotion and development of clustered SSEs in other developing countries.Practical implicationsFrom the viewpoint of policy formulation, the results offer a strong empirical basis for a cluster approach rather than a dispersed approach for promotion and development of SSEs in India. The cluster approach has implications for establishing linkages between formal and informal SSEs and for elimination of smallness of dispersed SSEs.Originality/valueThe paper provides a comparative analysis of economic size and performance of the dispersed and clustered SSEs by consolidating the diverse databases in India.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
