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INSTITUTE OF DEVELOPING ECONOMIES
IDE Discussion Papers are preliminary materials circulated
to stimulate discussions and critical comments
IDE DISCUSSION PAPER No. 171
Transformation of a Woodworking
and Furniture Industrial District in
Kampala, Uganda:
Dichotomous Development of SME
Cluster and Large Firm Sector
Eiichi YOSHIDA*
Abstract
Clustering small manufacturers are believed to attain various types of collective
efficiency. A woodworking and furniture SME district in Uganda has created a
learning environment for artisans to start up their own workshops. In the district
workers can access various managerial information including business skills and
input materials easily than outside. Hence it attracted new entrants to follow and
district growth continued. On contrary large firms are locating separately and
dispersedly from SME district and have a negative image to SME. This dichotomy
has been created partly through spatial division of two sectors and partly through
policy favouritism toward large firms.
Keywords: SME, cluster, agglomeration, incubation, woodworking, furniture, Uganda,
Kampala
* Research Fellow, African Studies Group, Area Studies Center, IDE
(Eiichi_Yoshida@ide.go.jp)