Cluster strategy as a sustainable competitive advantage for small and micro businesses

Abstract

Small businesses and micro-businesses is at the most common form of businesses in Indonesia. Micro and small enterprises are businesses that survived during the monetary crisis. Development of micro and small enterprises can improve the nation's economy, reduce unemployment, increase the number of businesses, increase the level of innovation, and increase regional GDP or country. In order to increase the country's economy, it will require the development of micro and small enterprises. Strategy that can be used to answer these needs is clustering strategy, which created an ongoing relationship between business actors with suppliers. Relationships and attachment between these two will make a mutual effort of their sustainability. Cluster development has the power to help business in value creation, where entrepreneurs get the ease and certainty of availability of raw materials, guaranteed raw material quality, and the value of purchases of raw materials that is more competitive. Advantages that make the effort to be more competitive than other businesses, so it is expected that existing businesses can survive in a better way when the competition gets tougher. Cluster strategy is an alternative to gain superior competition and competitive advantages.