The project’s goal is to strengthen government capacities in participating countries to design and implement effective policies to promote the direct and indirect internationalization of small and medium sized enterprises (SMEs). The project aims at fostering a virtuous chain by increasing SMEs direct and indirect access to international markets, which will contribute to boost their income as well as the levels and quality of employment. Since SMEs concentrate most of the employment of the low income population in the region, it should also have a positive impact in the reduction of poverty and inequality levels, in line with the first and eighth Millennium Development Goals (MDGs 1 and 8). The activities of the project will strengthen the capacities of governments from participating countries to: i) assess the SME performance in international markets and design and implement effective policies and programs to enhance their participation in global and regional supply chains; ii) design and implement effective policies to promote and foster innovation among SMEs, and iii) identify the most suitable policies and programmes to overcome SMEs current constraints in their access to financing.