Introduction

In the present world of globalisation, small and medium enterprises (SMEs) are key actors in almost every production system. In all continents they represent the largest number of firms, and also contribute significantly to both employment generation and GDP formation (AESMEC, 1998; Observatory of European SMEs, 2002/2; Peres and Stumpo, 2002). This volume focuses on the development of small and medium enterprises and small and medium enterprise clusters (SME clusters). Its objective is to propose some relevant suggestions for the development of SMEs and of a special kind of SME cluster that is found in Latin America and, more generally, in developing countries: ‘survival clusters’ (Altenburg and Meyer-Stamer, 1999; Knorringa, 2002). These clusters are formed by micro and small craft firms working with obsolete technology and manual techniques to produce, with no division and specialisation of labour, low-quality non-standardised goods for low-income consumers in local markets. Overall, these agglomerations of firms have little margin for capital accumulation and economic growth (Altenburg and Meyer-Stamer, 1999). The identification of this category of SME clusters is relevant for theoretical and practical purposes because they frequently populate the economy of developing countries.