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Laws, reforms and SME policies in Cameroon are lacking and should be amended. If industrial clustering as a development tool for SMEs is applied when good reforms and policies have been set in place then, industrial clustering can better yield fruit. The survey testing results find that industrial clustering is directly related to SME’s growth and development. The influential roles of industrial clustering for SME’s development are the ease of information, cluster density, business performance, certain levels of innovativeness, social networking, adaptive networking capability, negative external networking capability, and lack of reforms and policies in Cameroon. This paper, therefore, proceeds to recommend that the evolving relationship between the state’s entrepreneurial role and market factors are parts of the success picture. More importantly, support policies may seem to be invalidated by the unbalanced relationship between the state and market. Unfortunately, the Cameroonian government has not thoroughly identified such consideration.