The role of government in fostering sectoral SME development : an analysis of the tourism industry in Australia, Hong Kong and Singapore

Although their worlds and views may often seem far apart, small firms and government are closely interlinked. Small firms are both regulated and occasionally supported by the activities of the state, whilst government in turn relies on an active SME sector as part of the process of facilitating economic growth. In the post-World War II period, national priorities for economic development often placed a priority on large corporations and state-run agencies. However, during the last 30 years, East Asian nations have generally adopted a more liberal economic mix that has begun to recognize and emphasize the importance of micro, small and medium-sized firms. Across the region a number of different tools have been used to facilitate small business growth in particular industries, with variable results. Markedly different strategies have been used in various nations and, although there has often been a desire by governments to find the 'magic bullet' - that is, the one fool-proof strategy that will guarantee a buoyant SME sector - to date there has been little evidence to show that one approach is more useful than another.