FOREWORD

Small and Medium Enterprises or SMEs feature prominently in the APO member countries. They constitute the largest economic and business entities and assume a major role in employment generation. As such, many member countries place great importance on the development of the competitiveness of SMEs so that they can serve as the engine of growth for national economies.

A high level of competitiveness is attributable to a number of factors. These include appropriate business models and strategies, the ability to penetrate a market, and strong leadership. The SMEs, being small enterprises, however, will have to take into account other additional factors, such as access to capital and technological development. Given this, many of the initiatives to develop competitiveness of the SMEs focus on the areas of financial and capital assistance, business matching and partnership with large corporations, and technological development.

In this study, the Asian Productivity Organization (APO) examines SME competitiveness through entrepreneurship development. Entrepreneurship is regarded as a type of business acumen which may be enhanced through improvements in know-how, skills, and competency. The APO’s specific focus on development of entrepreneurship is prompted by an underlying assumption that development of this skill will be a longer-lasting benefit than other forms of assistance such as technology, finance, and partnership arrangements.

The present publication is a compilation of case studies prepared by a team of SME experts, policy-makers, and practitioners from the member countries of Bangladesh, India, Indonesia, Malaysia, Nepal, Pakistan, the Philippines, and Vietnam. The study was initiated with a coordination meeting in Karachi at the end of November 2005. Subsequently, the study was coordinated by Ms. Ayesha Baig from Pakistan, who assumed the role of Chief Expert.

The APO would like to express deep appreciations to all the contributors and the member countries participating in the study, as well as to all other parties who have agreed to open their doors and provide access to the information and data that are necessary for the completion of this study. It is hoped that these case studies and experiences with the development of entrepreneurship in the SMEs in the selected APO member countries will provide practical ideas and concrete examples for the further development and competitiveness of SMEs in the Asia-Pacific region.

Shigeo Takenaka, Secretary-General, Tokyo