Smes in asia and the pacific

1.2.1. Entry: what does it take to set up an SME?
The first critical stage in the development of an SME is that of market entry, or 
start-up. This entails all the steps and procedures to get a business up and running in 
compliance with the laws and regulations of the host country. There are typically two 
important factors in this regard: (a) the time is takes to start up a business; and (b) the cost 
8
Sadly, in the latest iteration of the Global Economic Monitor study, only two Asia-Pacific economies 
(Republic of Korea and Japan) were among the 43 countries taking part.
Source:  Niels Bosma, Zoltan J. Acs, Erkko Autio, Alicia Coduras and Jonathan Levie, Global 
Entrepreneurship Monitor 2008 Executive Report (Global Entrepreneurship Research Consortium, 
2009) available at www.gemconsortium.org/download/1240814294671/GEM_Global_08.pdf.
Figure 1. The Global Entrepreneurship Monitor model of entrepreneurship and 
economic development
Social,
cultural,
political
context
Basic requirements
- Institutions
- Infrastructure
- Macroeconomic stability
- Heath and primary 
education
Established firms
(primary economy)
New branches, 
firm growth
National 
economic 
growth
(jobs and 
technical 
innovation)
Entrepreneurship
Efficiency enhancers
- Higher education and 
training
- Goods market efficiency
- Labour market efficiency
- Financial market 
sophistication
- Technological readiness
- Market size
Innovation and
entrepreneurship
- Entrepreneurial finance
- Gov. entrepreneurship 
programmes
- Entrepreneurship education
- Research and development 
transfer
- Commercial, legal 
infrastructure for 
entrepreneurship
- Entry regulation