Our Mission
The mission of theSME Institute is to increase the availability and successful use of risk capital finance for small and medium enterprises (SMEs) in developing and transitional economies.

What we do
The Institute serves as a global association for stakeholders in SME finance—fund managers, investors, and other private and public institutions. Moreover, the Institute seeks to both stimulate and organize new thinking and research related to the development of SME sectors through innovative investment practices.

Within the context of equity investment and other participating forms of SME finance, the Institute works principally with fund managers, investors, and entrepreneurs to:

• identify and disseminate best investment practices,
• provide training and networking opportunities for fund managers and investors,
• define and refine standards of practice and performance,
• promote supportive legal and regulatory environments.

The Small and Medium Enterprise Institute (SME Institute) promotes the emerging industry of risk capital investment for small and medium enterprises (SMEs) in developing and emerging economies. Often referred to as "development venture capitalists," the industry's practitioners provide equity and equity-like financing in the general range of USD 100,000-1,000,000 to companies with annual sales in the range of USD 100,000-5,000,000. Their investees are typically growth-oriented entrepreneurs who lack access to non-asset-based financing and need business assistance from outside partners to help them grow.

The Institute was established at the urging of its founding partners and various other organizations engaged in SME development. In recent years, investors and development finance professionals have become increasingly aware of the potential of SMEs, particularly in under-served markets and low-income areas throughout the world.

At the same time, equity is proving a powerful tool in realizing that potential, due to its ability to suit the growth patterns of entrepreneurial enterprises and bring focused assistance from professional partners. As many as 150 SME equity funds currently exist, with capital under management approaching $2 billion. New funds are being created at an increasing rate.

Advisory Services

To Governments

The Institute advises government agencies and ministries on legal and regulatory issues related to risk capital vehicles and transactions. It also provides guidance on government initiatives designed to stimulate equity investment in SMEs.

To Investment Funds

Through workshops and customized programs, the Institute provides staff training to existing and new funds. Additionally it helps funds with business and operational planning, and fund raising strategies. (However, the Institute does not engage in representation or fund raising on behalf of individual funds.)

To IFIs

The Institute participates in the review of SME and financial sector strategies as they relate specifically to venture and risk capital investment targeting SMEs.

To SMEs Owners

While the Institute does not help businesses raise capital, it does provide training in corporate governance and other issues related to a business's eligibility for risk capital investment.

Workshops and Semninars

In addition to the Annual Forum, the Institute organizes one- and two-day seminars and workshops for specific countries, regions, or stakeholder groups involved in SME finance. These events are generally designed by the Institute, working on behalf of, or in co-sponsorship with, the following kinds of organizations:

• investors from bilateral, regional, or multilateral development finance institutions from a specific region;
• multinational corporations;
• commercial financial institutions of a specific region;
• technical assistance organizations, business centers, and small business consultants;
• bilateral development organizations;
• federations or chambers of entrepreneurs;
• government ministries; or
• business schools and other academic institutions.

These sessions provide exposure to SME risk capital, its practices, and its participants. Subjects range from general introductions to venture capital to specific technical areas of fund management, investment strategy, business support, or corporate governance for SMEs.