ADB: Governments worldwide adjust SME strategies amid current challenges

Current global challenges are forcing governments around the world to revise their strategies and approaches to the development of small and medium-sized enterprises (SMEs), Asian Development Bank (ADB) Executive Director for Japan, Shigeo Shimizu, said during the presentation of the ADB report "Asia Small and Medium-Sized Enterprise Monitor 2025" (ASM 2025) taking place in Baku.

"However, there is still very little reliable data on the scale of SMEs and on how and where they operate. Such data are known as landscape data. Given the lack of this information, ASM has taken on the task of creating a reliable data repository. We now have an important resource for policymakers as they design and implement national SME development programs," Shimizu emphasized.

According to him, much work still lies ahead.

"The database is already good, but there are still gaps that need to be filled. As global economic uncertainty deepens, a more comprehensive database can strengthen evidence-based policymaking, which is increasingly necessary to build sustainable and inclusive economic growth at both the national and regional levels," he noted.

The Executive Director emphasized that the current situation in global trade remains uncertain - from tariff wars to Russia"s ongoing invasion of Ukraine and overall geopolitical tensions:

"All this global uncertainty affects SMEs depending on countries" economic conditions, including their size and growth policies. But one thing is clear - since SMEs play a key role in national economies, global challenges are forcing governments to reassess their SME development strategies and approaches to ensure the formation of a sustainable and resilient growth ecosystem capable of withstanding global instability."

According to him, the ASM report series serves as a valuable guide for developing effective government support programs for SMEs amid current global economic uncertainty.

"We can use this as a foundation for creating more innovative SME policies - including expanding access to finance and enhancing resilience to shocks such as pandemics, natural disasters, or other regional crises," Shimizu concluded.