Small and Medium Enterprises

Introduction

Micro, small and medium-sized enterprises (MSMEs) are the economic engines of the APEC region and of all APEC economies. MSMEs account for over 97 percent of all businesses, most private-sector employment and about half of private sector output within the region. MSME development can support growth in the APEC region and ensure that growth is sustainable and inclusive. MSMEs play a critical role in the development of new technologies including artificial intelligence and those that will support the digital and green transformations while many will also face challenges in adopting such technologies. MSMEs play an important link in growing trade and inter-connectedness within the APEC region through increasing their participation in trade from their current share of 35 percent or less of direct exports and through enhancing their connectedness to global value chains.

History and Objective

Within the context of the Asia-Pacific Economic Cooperation Forum, , small and medium-sized enterprises (SMEs) have been recognized as a priority area since the 1993 APEC Leaders’ Meeting in Seattle. First established in February 1995 as Ad Hoc Policy Level Group on SMEs, the group was renamed Small and Medium Enterprises Working Group (SMEWG) in 2000. The SMEWG primarily works to encourage the development of SMEs and to build their capacity to engage in international trade.

Vision Statement

The SME Working Group is the champion within APEC for the inclusive development of innovative, sustainable, and digitally empowered MSMEs that are well-equipped to meet the challenges of the 21st century.

Mission Statement

The SMEWG will further promote the development of an enabling environment, foster capacity building, and enhance the inter-connectedness of MSMEs within the APEC region through the sharing of best practices among APEC economies and building on synergies with other APEC fora, the private sector and other stakeholders to promote the development and growth of MSMEs in the Asia-Pacific region.

Ministerial and Plenary Meetings

The APEC SME Ministerial Meetings, held annually since 1994, set out the direction for the working group. The SMEWG held two plenary gatherings per year.

SMEWG Strategic Plan

In September  2024, SME ministers noted the endorsement of the SMEWG Strategic Plan for 2025–2028, which provided a roadmap to address critical issues pertaining to the growth of SMEs and microenterprises in the APEC region.

These priorities are the following:

• Start-up, entrepreneurship and business environment;
• Scale-up, innovation and growth, including through access to finance;
• Access to international markets and connecting to global value chains;
• Digitalization; and,
• Bio-circular-green transformation. 

The SMEWG Strategic Plan 2025-2028 has taken into consideration in its development, not only the current challenges MSMEs must face, but also the forward-looking challenges as well as declarations and statements issued by APEC Leaders, APEC Ministers and APEC SME Ministers. The SMEWG, through its Strategic Plan 2025-2028, will make important contributions to the realization of the APEC Putrajaya Vision 2040 and the Aotearoa Plan of Action as well as the Bangkok Goals and the Lima Roadmap among others.

SMEWG Terms of Reference

The SMEWG Terms of Reference for 2025 - 2028 gives the guiding principles on how the group operates in areas such as structure, leadership, meeting arrangements, fora review, quorum, sunset clause; list of tentative chair/vice chair and host of SMEWG meetings till 2040. Access the TOR here.

Last page update: January 2026

Contacts

Current Activities

The 59th SMEWG meeting took place on 22-23 May in Hachioji City, Tokyo, Japan. The meeting focused on the 2025 APEC priorities, with members discussing, among other topics, improving entrepreneurship and business environment of small and medium enterprises (SMEs); digitalization; scale-up, innovation, and growth through access to finance; green transformation; and strengthening micro and SMEs through artificial intelligence. The meeting aimed to promote sustainable growth opportunities for SMEs in the global economy through exchange of best practice and knowledge and reinforce cooperation among APEC economies.

The 60th SMEWG meeting was held from September 1-4 in Jeju, Republic of Korea, Building on the Strategic Plan (2025–2028), members presented initiatives ranging from industrial cluster development, startup ecosystems, cooperative strengthening, and financing programs to digitalization, artificial intelligence (AI) adoption, and green supply chain competitiveness, with strong emphasis on women’s entrepreneurship, ethical business practices, and international market access. Participants also focussed on supporting SMEs in transitioning to the formal economy, facilitating access to financing, supporting start-ups, and providing training.

The 31st APEC SME Ministerial Meeting took place on 5 September in Jeju, Republic of Korea. The Ministerial meeting agenda aligned with APEC 2025 focussed on three key priorities: Innovative growth through emerging technologies, Sustainable growth through smart policies, and Inclusive growth through enhanced connectivity. Ministers reaffirmed their commitment to the APEC Putrajaya Vision 2040 and the Aotearoa Plan of Action, noted the importance of fostering resilient and innovative SMEs across the region and recognized that innovation and growth of SMEs hinges on a favorable business environment including the effective utilization of AI and digital technologies. SME Ministers released a Joint Statement, and launched the Jeju Initiative on Startup Alliance. A Chair Statement was also issued.

The SMEWG work plan for 2026 is currently being developed, in line with the SMEWG Strategic Plan (2025–2028).

The 61st SMEWG meeting will be held in Korea, and the 62nd SMEWG meeting and the 32nd APEC SME Ministerial Meeting will be held in China.