Small business

POLICY MANAGEMENT
3.1 Inter-departmental co-ordination and communication 
Objective: To set out clearly the role of different departments in SME development and the mechanisms by which
policies and programmes will be co-ordinated.  
There is no ideal model for this difficult task. Virtually every department of government impacts upon
SME development. A starting point for co-ordination has been noted earlier, namely understanding the way
that SME development impacts on national economic and social development priorities. Aside from the
creation of inter-ministerial committees, the most common vehicle for attempting co-ordination is the
creation of a small business department or agency. This can be housed in a particular government
department, created as a separate department or set up as a semi-autonomous agency and/or network of
regional and local agencies (see Chapter 5).  
A key issue is that of relative strength and power of the voice of SMEs in government. Representation
via a senior cabinet minister is desirable but rarely achieved. Location in the Ministry of Finance usually
ensures a more powerful voice.  
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
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In Malaysia, responsibility for small enterprise development policy was for a long time lodged with the Co-ordinating Unit
of the Prime Minister’s Office. This provides for a substantial voice in government.
In the USA, the US Small Business Administration’s Office of Advocacy acts on behalf of small enterprise to identify
areas of law and regulation which hinder the growth of the sector. The great importance of the Office lies in its legal right to
challenge Federal US Agencies in court on behalf of the small business and its role in educating and communicating with
Federal Government Agencies in respect of the small business interest. The US Congress has repeatedly affirmed and
expanded the Office of Advocacy’s powers. The Office has built up close links with the business community, among others
through regular information a number of regional offices. Variations of the US model have been created in a number of countries.