Book Description

Abstract: SMEs are key to strengthening productivity, delivering more inclusive growth and adapting to the major transformations of our time. SMEs that grow have a considerable positive impact on employment creation, innovation, productivity growth and competitiveness. While the population of SMEs is very diverse, innovation and scale-up are at the reach of many SMEs. Digital technologies and global value chains offer new opportunities for SMEs to participate in the global economy, innovate and grow. However, SMEs are lagging behind in the digital transition and are disproportionately affected by market failures, trade barriers, policy inefficiencies and the quality of institutions. A conducive business environment, is essential to incentivise risk-taking and experimentation by entrepreneurs, and foster business growth potential. Access to entrepreneurship competencies, management and workforce skills, technology, innovation, and networks, is also critical to enable SME growth. A cross-cutting approach to SME policy can enhance SME contributions to inclusive growth