Abstract:Medium-sized and small enterprise clusters promote economic and social development in undeveloped areas.Currently,China's medium-sized and small enterprise clusters have a lot of shortcomings.In order to promote economic competence in undeveloped areas and to promote local economic development,local governments can use the methods such as establishing industrial zones and so on to help the construction and development of medium-sized and small enterprise clusters.Medium-sized and small enterprise clusters are important carriers to promote economic development in undeveloped areas.However,there are a lot of risks in constructing medium-sized and small enterprise clusters by government-leading method based on local geographic situation,such as industrial risk,investment risk,environment pollution risk,employment risk,the risk of centralization but not clustering and so on.This paper really analyzes the risks and gives suggestions according to early warning mechanism.