The ability to integrate in the global economy through trade and investment has an important influence on the rate at which countries grow, according to recent assessments of growth. While globalisation and liberalisation have meant opportunities for SMEs to harness their growth potential and ultimately benefit from poverty reduction, enterprises in developing and transition economies face major challenges in strengthening their human and institutional capacities to take advantage of these new opportunities. This paper looks at the bottlenecks facing these countries and ways for governments, development partners and the private sector itself to address these constraints. It focuses in particular on the specific role of strategy, public-private sector dialogue, support structures and the contribution of women all in the context of achieving the Millennium Development Goals.
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