Survival strategies of small firms located in a Marshallian Industrial District: A case study of Zimbabwe's furniture manufacturing industry

Abstract

The growth and survival of Zimbabwe's small firms located in geographical clusters have been largely shaped by historical developments in the 'informal sector'. In spite of the plethora of problems that they face, these firms make a significant contribution to employment creation and income generation. Four factors are responsible for the success of these firms: territorial specificity; competitive strategy; flexible specialization and co-operative competition. It is recommended that policy interventions be instituted to attract more capital into the clusters, eliminate "cluster isolation" (access to markets and new technology) and increase the technological capabilities of the firms in the clusters.