This convention was held in Sri Lanka in 2005 examining major issues and challenges facing SAARC countries in developing small and medium enterprises (SMEs) which are of paramount importance in these regions. Among the papers presented is a general introduction by the editors and articles relating to the SAARC countries presented by economists from each of these countries. The problems face the SME industries in each of the countries and the policies put in place by them to counteract are detailed in these articles. The collection of essays indicates the importance of all countries in the region to pay greater attention to enhance the role of SMEs in economic development.