Working Paper
The Role of Training in Fostering Cluster-Based Micro and Small Enterprises Development

While it has been increasingly recognized that efficient management holds the key to the development of micro and small enterprises in developing countries, we know very little about the managerial capacity of business owners and managers in these countries. In order to explore whether we can nurture managerial capacity, this paper reviews case studies of industrial clusters in Asia and sub-Saharan Africa, including randomized control trials of management training. We found that the management training is effective in many cases, which renders support for the foreign aid policy that pays due attention to enhancement of managerial capacity.