Both economywide and sector-specific targeted policies are needed for growth of rural nonfarm enterprises. These policies should aim to remove barriers to trade and other disincentives by reducing or simplifying domestic, import, and export regulations. They should also help provide access to credit, markets, and research and development efforts. Islam concludes that technical assistance in marketing, management, and accounting is best when it is tailored to the needs of a cluster of enterprises producing similar goods and services. Such clusters, often located in small towns, also provide opportunities for economies of scale in purchasing supplies.
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