Today, governments worldwide recognise the importance of SMEs and their contribution to economic growth, social cohesion, employment and local development. SMEs account for over 95% of enterprises and 60%-70% of employment, and generate a large share of new jobs in OECD economies. As globalisation and technological change reduce the importance of economies of scale in many activities, the potential contribution of smaller firms is enhanced.

However, many of the traditional problems facing SMEs — lack of financing, difficulties in exploiting technology, constrained managerial capabilities, low productivity and regulatory burdens — become more acute in a globalised environment. As all economies have the potential to gain from a more dynamic small business sector, and because SMEs have specific strengths and weaknesses, policy frameworks and the role of government must evolve for SMEs to adapt to new pressures and reap the benefits of globalisation.

Encouraging entrepreneurship is high on the agenda of governments in OECD member countries and in transition, emerging, and developing economies, as entrepreneurs are the catalysts of growth, combining capital, innovation and skills. The importance of entrepreneurship stands out in this time of innovative change, and fostering a climate to help the dynamism in firm creation is considered fundamental worldwide.

The Working Party gives special consideration to the increasingly important role that innovative start-ups and SMEs play in job creation and growth. It addresses issues related to: business environment and regulatory framework, innovation, financing, taxation, human resources, access to markets, electronic commerce, and women’s entrepreneurship. The Group is also strengthening its co-operation with international organisations/institutions and regional bodies, including APEC, ILO, UNCTAD, UNIDO, the World Bank, and the Inter-American Development Bank (IADB).

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