Clusters are concentrations of inter-connected firms working in a particular industry or geographic area. The enterprises share common business objectives and outcomes.
Clusters encompass linked industries and other entities important to competition. They include suppliers, transport and logistics organisations, business service providers as well as business owners.
Cluster processes
Many clusters form naturally but others are formed actively when people have an interest in the same project. The five stages of cluster formation are:
- Mustering support
- Building a base
- Creating momentum
- Extending the base
- Sustaining momentum.
- How clusters benefit business
Clustering is an accepted driver of economic development.
Benefits
- Maximising competitiveness and innovation
- Retaining existing business and expansion
- Small-to-medium enterprise and export development
- Enhanced skills training
- Building bridges between business, government and academia
- Job creation and employment growth
- Inclusion of disadvantaged communities
- Research and development, technology transfer, incubators
- Promotion of new ideas and processes
- Tackling obstacles and barriers
- Opening up new commercial opportunities
- Increased investment.
Financial support
Industry & Investment NSW can assist in the formation of business clusters with funding to eligible businesses. A business cluster may require specialised assistance outside the scope of its membership. Funding can be used to get specialist help in planning and market research.
Eligible projects may qualify for a one-off , 75% subsidy of up to $10,000 during early stages of development and a matched 50% subsidy up to $10,000 for a two-year period as the cluster progresses.
How to Access the Business Clusters Program
We recognise the enormous potential in working together. The Business Cluster Program provides tailored, non-financial and financial support so established, small-to-medium enterprises can maximise their potential.
To talk to a Business Development Manager about the Business Cluster Program contact us using this contact form. call 1300 134 359 or email assist@business.nsw.gov.au.