THE RISE AND FALL OF AN ENTERPRISE CLUSTER IN AFRICA: THE JEWELLERY INDUSTRY IN SOUTH AFRICA

Abstract

ABSTRACT The success of industrial districts in Europe has inspired a wealth of studies on enterprise clusters and networks, not only in the context of developed but also less developed countries. In the latter context, especially, the concept of industrial districts proved alluring insofar as it affirmed the capacity of small businesses to become internationally competitive and thereby act as catalysts for economic regeneration. It has more recently been acknowledged that an industrial district “model” falls short in explaining differences between clusters of firms and that a more realistic interpretation of enterprise clusters is obtained through focusing on their trajectory of development. In this paper the jewellery industry in Johannesburg is examined from its early development as an industrial cluster in the downtown area, circa late 1930s, to the present period which has been characterised by efforts to regroup the industry in town, and increase its competitiveness through the promotion of co-operation and network ties.