Enabling Environment for the Successful Integration of Small and Medium-sized Enterprises in Global Value Chains: Country Studies on Bangladesh, Nepal and Sri Lanka, Studies in Trade and Investment 70

Small and medium enterprises (SMEs) in South Asia and are effective job creators and income generators. In addition, SMEs play a key role in poverty reduction and inclusive economic growth. However, SMEs in the subregion often face considerable resource constraints and have limited capabilities to compete effectively in global and regional markets. Recent experience from a wide range of Asian-Pacific countries, particularly from South-East Asia and China, indicates that SMEs can access international markets through global (and regional) value chains (GVCs). Based on the case studies from Bangladesh, Nepal and Sri Lanka, this publication aims to propose practical policy interventions for improving business environments and to facilitate SMEs’ access to global and regional markets through GVCs. A sector based value chain approach was adapted to focus on a few selected product groups with high export potential: plastic goods from Bangladesh; coffee and ginger for Nepal and rubber and electronic products in Sri Lanka. National action plans, a subregional programme and operational strategies for those products were developed and presented.