Integrating SMEs into Global Value Chains: Challenges and Policy Actions in Asia

The opportunities for Small and Medium Enterprises (SMEs) in global value chains are enormous. Participation in value chains exposes them to a large customer/buyer base, as well as opportunities to learn from large firms and from engaging and surviving in the hotly contested sectors of the global marketplace. This process can enhance SME competitiveness, create more jobs, and promote inclusive growth in developing Asia.

The penetration of global value chains, however, also presents huge and often daunting challenges for SMEs. They may fail to gain a foothold and have to forgo large market development expenditures as a result. With global opportunities come global risks.

About the report

The Asian Development Bank and the Asian Development Bank Institute recognize the importance of integrating SMEs into global value chains. To provide pathways for such integration, this study examines ways of encouraging participation in value chains, and explores policy solutions to address the financial and nonfinancial barriers faced by these enterprises.