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The identification of small and medium businesses (SMBs) as a target for development policy is a comparatively recent phenomenon. It is clearly linked to the realization in developing countries that large capital-intensive industries which formed the basis of earlier development policies had failed to provide the hoped-for engine of growth. Only in the 1970s, as planners realized the mismatch between Western large-scale technology and local factor endowments, and as urban unemployment became an increasingly pressing problem, did attention turn to smaller scale and more labour intensive enterprises to provide possible solutions.

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The ASEAN Small and Medium Business Improvement Project seeks to contribute to this awareness of the significance of small and medium businesses (SMBs) in a direct and practical manner: through the examination of SMBs at ground level, and the dissemination of findings for policy action. The project is the collaborative effort of research teams in each of the ASEAN countries (except Brunei; the project was formulated before that country joined ASEAN), coordinated centrally at the Institute of Southeast Asian Studies (ISEAS).

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