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Small and medium enterprises (SMEs), including micro enterprises, have emerged as an engine of growth for most countries of Asia and the Pacific. Their contribution is well known particularly for increasing production, export and employment, and thus income generation. Above all, SMEs serve as a seed bed for enterprise development. Each country has evolved its own policy, institutional framework and support mechanism suiting its needs, stage of development, ethos, culture and understanding of SMEs role. Many countries in Asia and the Pacific, as well as various multilateral and bilateral development agencies, have implemented a variety of interventions in Asia and the Pacific in line with their SME development strategies, typically in the following six key areas: business environment; entrepreneurship; access to finance; innovation and technology; business development services; and market access. Their interventions use several modalities to address the key issues, including policy advocacy, institutional capacity building, human resource development, and direct support to enterprises. Those key issues for SME development are covered in the publication. This publication should become the basis for deliberations on policy formulation for SME development in Asia and the Pacific, developing and toning up the institutional framework based on inter-country experiences. It is also aimed to serve as a training manual for entrepreneurs and trainers, as well as business associations, such as chambers of commerce and industry, for capacity building of SMEs.