development agenda to achieve true self reliance as a nation. The vast majority of our people are greatly marginalised and are not engaged meaningfully in economic activities. An estimated 40%1 of our population live below the poverty line. An estimated 84% of our people are engaged in the subsistance and the non-formal economy. An estimated 90%2 of the wealth of our nation is controlled by 2%3 of large enterprises which are foreign owned. High inflation and falling exchange rates makes it very difficult for our citizens to fully liberate themselves and live dignified lives. The on going lack of economic opportunities and support mechanisms has resulted in our people being dis-illusioned about their place in our modern society. The vast majority of our people feel left out. There is growing resentment. This is reflected in the gradual decline or break down in law and order and other cross cutting issues. With our population growing steadily every year, and a growing percentage of literate (educated) people who expect more than merely being engaged in the subsis- tence or the informal economy, this poses great threat to stability and growth of this nation. The future looks bleak if the government does not consider serious policy interventions and strategies to address and change this trend. Our country requires significant economic reforms and strategies to transform the economy to empower our people reduce poverty, fairly distribute the wealth of this nation, which will in turn achieve the desired goals of Vision 2050. SMEs must assume a greater role in the economy. SMEs must not only act as an enabler but also a key driver of broad based inclusive economic growth programs which will drive the achievement of national prosperity as a high-income country by 2050. Meeting the Vision 2050 of a high-income nation is a challenging task. We must think outside the “box” and not allow the status quo to continue. A fresh approach is required to accelerate the growth of SMEs. The aim is to increase the contribution of SMEs to the economy, which will put the power back in the hands of our people. This necessitates a quantum leap in growth and transformation from agricultural development to higher value-added activities that are knowledge intensive. The SME Policy will therefore play a significant role in navigating the new development path for SMEs across all sectors. The new strategy will build on existing initiatives for SMEs by strengthening the current framework and aligning them to the macro policy reforms. In comparison to other countries such as Malaysia and Botswana, the growth of the SME sector in PNG over the years has been negligible. PNG, Malaysia and Botswana were at the same development stage in 1975. However, Malaysia and Botswana are now major transition economies due to their government focus and development of the SME sector. The growth and development of the SME sector in our country has been slow due to several factors such as access to business finance, transport and other enabling infrastructure, law and order, and high cost of utilities amongst others. The lack of enabling legislation and policies also contributed to the slow growth of the sector.