This section of the Resource Centre discusses government policies that influence MSME development in various countries. Not all economic policy is made with the explicit intention of assisting MSMEs, but as they constitute such a large proportion of economic activity, when policymakers change or create broad economic policies they must be aware of the effects on MSMEs. The mix of policy options depends on several factors, including the prevailing attitudes of the population towards entrepreneurship, the structure of the labour force, the size and role of government, the prevalence of the current level of entrepreneurial activity, etc. Since MSMEs can directly alleviate poverty by increasing income levels and creating jobs, governments have embraced policies promoting development and growth.
This section focuses on the areas of macroeconomic policies, competition policies, and trade and investment policies, and the various ways in which they can help or hinder MSME development.
