The importance of Micro Small and Medium Enterprises (MSMEs) in creating livelihood opportunities and fostering socio-economic development is significant, especially in developing economies. Micro and Small enterprises contribute substantially in stirring socio-economic growth in India. However, enterprises do not run in isolation. Their growth enormously depends on ties with other firms and individuals which include interaction, knowledge sharing, access to resources and other factors, together forming an entrepreneurial cluster, where all those entities work collectively towards an economic goal. Thus, entrepreneurial clusters have gained increasing significance as potential drivers of growth in recent years. Existing Cluster Development policies include soft interventions such as technical assistance, capacity building, market development etc. and hard interventions such as common facility center, R&D center etc. Policies also include credit support, infrastructure development, need based support etc. But the entrepreneurial process solely doesn’t depend on these interventions. Entrepreneurial networks play a central role in nurturing innovation, accessing resources and mitigating uncertainty. The socio-cultural and socio-economic background of the entrepreneurs, various characters of the cluster and the embeddedness of the firms into that influence the evolution of enterprises. Intensity of diversification of enterprises and reciprocity influence indirectly yet significantly the growth trends of a cluster. However, it has been observed that cluster development policies have disproportionately focused on direct determinants of growth. Hence, the present research has identified following research questions – (i) How do locational circumstances regulate the spatial and temporal determinants? (ii) How do spatial and temporal context contribute in establishing healthy and strong enterprises? The study compares locational dynamics of two clusters, in two different peri-urban contexts in eastern India. The study has utilized data, collected through two key techniques systematic field survey and focus group survey. Key findings indicate that various attributes like age of cluster, density and diversification of enterprises, land use, land value, local governance, natural setting, socio-cultural and socio-economic trends etc. influence the growth of clusters. In addition to that present exercise has attempted to identify (i) location specific forces, and (ii) spatial and temporal dynamics of gains and losses. Findings further indicate formulation of strategic vision and action plan based on the cluster specific diagnostic study instead of adopting an overarching cluster development policy, to aid effective socio-economic development.