| Introduction : United Nations Development Programme, hereinafter referred to as UNDP hereby invites prospective proposers to submit a proposal in accordance with the General Conditions of Contract and the Terms of Reference as set out in this Request for Proposal (RFP), requesting the proposal on Survey of Clustered MSMEs in Afghanistan. Over 80 percent of Afghanistan’s economy is estimated to be made up of micro, small, and medium-sized enterprises (MSMEs). Value adding MSMEs are productive – in contrast to businesses that only buy finished products to sell on – and resilient with some being generations-old with strong roots in their communities. A significant proportion of MSMEs are “clustered” enterprises, congregated in localized networks or geographically identifiable concentrations of similar, related, or complementary businesses bound together in a social division of labor. Relationships among cluster members range from informal collaboration to more formal partnerships, alliances, networks, associations, and knowledge sharing platforms. Because of these relationships, clusters can serve as a focus for productivity improvement and innovation to increase value addition, specialization, and competitiveness in domestic and international markets. Strategic programming by multilateral agencies such as the United Nations, centered on tapping into the synergy of clustered enterprises, can lead to economic and social development, generate new jobs, and alleviate poverty Addressing the most pressing needs of clustered MSMEs and enabling them to take full advantage of industry-specific knowledge and technology, supplier and buyer networks, and innovations in response to competitive pressures are likely to spur growth of the clusters and benefit the broader economy. In an enabling environment, clustered enterprises benefit from external economies through collective contracts with specialized suppliers of raw materials and components, access to pools of sector-specific labor force and skills, access to resources such as micro credit and production tools and equipment, and support from favorable legislation and incentives.
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