Clustering : it's impact on the competitiveness of small manufacturers in the clothing industry in Port Elizabeth

Abstract

This research has aimed to explore the impact of clustering on the ability of small manufacturers in the clothing industry in Port Elizabeth to enhance their competitiveness. The research study was conducted in two stages, which included both qualitative and quantitative research methods. Firstly, an exploratory qualitative study using the Delphi method was employed to identify the key problems currently being experienced by small manufacturers in the clothing industry. Finally, the application of a structured questionnaire to small manufacturers in the clothing industry followed, exploring the awareness of and interest in clustering as a strategy for enhancing competitiveness. A key observation to emerge from the qualitative research is that significant differences were evident between the responses of academics, professionals in small business development and small business owners. An analysis of the problems experienced by small manufacturers in the clothing industry revealed that high labour costs and low I productivity were the frontrunners. The lack of knowledge was cited as the most important problem preventing the wide scale implementation of horizontal clustering. Another key observance to emerge from the quantitative study is the fact that very few significant differences are evident between the two groups viz. small business owners and experts. The research indicated that although in the minority, horizontal linkages exist between small clothing manufacturers in Port Elizabeth. The results indicated furthermore that the majority of small clothing manufacturers in Port Elizabeth are