Small business

3.7 Developing sectoral approaches
Objective: To select and monitor priority sectors for SME development as well as regional and social development
priorities, for example in tourism, agriculture, craft and distribution services
The importance of taking a sector-based approach lies in the fact that the entrepreneur prefers his/her
services to be as closely related to the specific environment (and opportunities and problems) of the
business as possible. Moreover many of the regulatory interventions of government are sector based, such
as food hygiene, transport regulations, etc. 
Understanding sector development is the key to effective cluster and supply chain policies.
Concentrating on the supply chain in a sector is central to harnessing the energies of the private sector,
maximising value added and increasing performance in general. Value chain analysis (see Annex 9.13 for
an example) is a useful approach to assessing impacts of regulations and policies, and to identifying key
groups of enterprises likely to be affected and with whom dialogue should be initiated.
EFFECTIVE POLICIES FOR SMALL BUSINESS - © OECD 2004
3. Policy Management
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Chapter 4.