SME Internationalization, Public Policy and the Growth Agenda

Abstract

This chapter focuses on small- and medium-sized enterprise (SME) internationalization and the role of public policies and other supportive measures towards internationalization, and how they interact with practice, both in the policy and in the commercial and financial spheres. Many governments employ such measures and aspire to internationalize their SMEs, and the topic is prominent in the economic growth agenda of the European Union—hinging to a large extent on SMEs and entrepreneurial firms contributing to growth via internationalization. But the policy measures needed (i.e., those that are effective) must depend on identifying the appropriate theory (or theories) of internationalization upon which policy works. This must influence how best to tackle deficiencies in firms—for example, issues to do with the availability and terms of finance, awareness-raising measures, knowledge acquisition measures and capacity-building measures. And all need to be clearly linked with the ultimate objective of contributing to economic growth in the focal economy. This chapter puts forward questions on the matter of how the public and private sectors evaluate SMEs’ business projects, whether they treat SMEs any differently from larger companies, what kind of new, if any, tools governments and finance providers are looking for, and how new theory of policy intervention can be produced.