1.4. Cradle to grave: the role of policymakers and development
partners in supporting the SME sector
Policymakers in developing countries and development partners tend to place
special attention on SME sector development, for reasons discussed above. In recent
years, such interventions have tended to shift away from direct (and often subsidized)
support to individual SMEs, which can bring undesired market distorting risks, and more
towards economy- and market-wide initiatives that are market-oriented in nature.
Pro-SME development interventions in developing countries tend to focus on those
issues where SMEs have most problems of access, including (but not always limited to):
(a) access to finance; (b) access to land; (c) access to business support services; (d)
access to markets, especially overseas markets; (e) access to training and guidance; and
(f) access to technology and infrastructure.
14
The schema outlined in table 11 tries to profile some of the more common
interventions used for pro-SME development, in line with best practice, although it is not
exhaustive in scope. In practice, of course, there tends to be quite a lot of overlap between
the various components in this SME development smorgasbord.
13
Report of the Fourth World Conference on Women, Beijing, 4-15 September 1995 (United Nations
publication, Sales. No. E.96.IV.13), chap. I, resolution 1, annex I.
14
For a cogent summary, see chapter 7 of the Best Practice Guide for a Positive Business and Investment
Climate (OSCE 2006).
Table 10. Prevalence rates of entrepreneurial activity, by gender, across five Asian
economies, 2007
Early stage
entrepreneurial
activity
Established
business owners
Overall business
owners
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