SMEs agglomeration and its contribution to socioeconomic transformations in peri-urban area (Case study: Semarang City)

Abstract

The rapid growth of Semarang City has triggered an agglomeration of small and medium enterprises (SMEs) in peri-urban areas. In addition to its impacts on the socio-economic state of the local community, the SMEs growth also affects to spatial transformation in the same area. Red brick industry in Pedurungan Kidul Village represents this phenomenon. Since 1990, its production activity has positively impacted on the local community's welfare improvement through increasing employment opportunity and household income. However, it also has threatened the existing spatial development change. By using sequential mixed method approach, the purpose of this research is to investigate the contributions of red brick industry growth towards peri-urban development, both spatially and socio-economically.