Sustaining SMEs; A Rationale
Small & medium enterprises (SMEs) play an important role in the economies of most countries in the Asia-Pacific region not only because of their sheer number but also the variety of their activities. In part, SMEs contribute to countryside development, as well as support large industries and serve as a breeding ground for innovation and adaptation. SMEs thus can be looked upon as a source of constant renewal in commerce and industry and as a wellspring of competition and dynamism.
Development financing institutions (DFIs), by the nature of their development orientation and mandate, have been for many years in the forefront of SME promotion and assistance in their respective countries.
The success, however, of DFIs in assisting SMEs varies from country to country because of differences in priorities, policy directions and pronouncements set by each country. Recent developments, especially in the technology arena, as well as the standardization of rules of business via the World Trade Organization, have enabled DFIs to find some common ground in its resolve to further support SMEs.