ADB’s SME Development Assistance Presentation by: Neil Wallace Senior Financial Management Specialist Asian Development Bank 28 October 2009

Small and Medium-sized Entities and Poverty Reduction Developing Member Countries are at different stages of transforming their economies from being essentially rural and agrarian to becoming urban and industrial Countries such as Cambodia and Viet Nam have become more productive as they have industrialized SMEs are the core of urban industrial activity Support for SMEs can help reduce poverty

Institutional Conditions Required for Structural Change Strong physical infrastructure to promote efficiency in telecommunications, power, roads, ports, transport, and water supply Strong regulatory environment and transparency and predictability of rules Sound contractual frameworks Competitive open markets Availability of reliable information Long-term credit availability Effective banking sector

ADB Assistance for Public Policy Regional cooperation strategies and programs Country Partnership Strategies (CPS) Enables the shift of resources to activities with higher levels of productivity Institutional factors and policies that enable SMEs to expand and grow

ADB policy reform assistance program loans are supporting the development of SME development program loans Business registration Business licensing Legal and informational underpinnings of finance Access to resources e.g., finance and land use rights Access to international markets e.g., industrial/technical standards Banking and financial sector program loans support the development of credit

ADB Support for Strengthened Financial Reporting Strengthened financial reporting can help improve SMEs’ access to finance ADB programs have included support for strengthening of financial reporting ADB continues to cooperate with and support IFAC, CAPA, IASB, INTOSAI etc.

For More Information Neil Wallace,