Conformation of clusters derived from mesoenterprises in economic and institutional sceneries for stimulating local development

Among the key factors for local development, there are the flexible production organization and the development of institutions; these topics are analyzed and evaluated in this article, particularly to the Mérida´s case, Venezuela, by analyzing its strengths, weaknesses, opportunities, and threats. According to this analysis, Merida, in the first place, should become a much more competitive city. In second place, encouraging the development of clusters derived from meso-enterprises. The completion of this article employed the use of documental analysis, the inferential abduction and the complementarily as the main methodological resources. The article concludes that according to the local development theory, developing countries can improve its local territories by stimulating the private investment, as well as the creation of clusters that stimulate the industrial diversification and the competitiveness of territories.