| In recent years, there has been increasing recognition of the export potential of Small and Medium-Sized Enterprises (SMEs) to improve the persistent trade and current account deficit. The needs of SMEs are different from those of Large Enterprises (LEs). While LEs can generally obtain their own finance and marketing information with little difficulty, it is generally agreed that SMEs lack ready access to commercial sources of marketing and finances. While, public support agencies and export assistance programs have been established on the grounds of market imperfections and externalities, assessments of their efficiency and the usefulness of their services to the SMEs are rare.;This paper presents the findings of sample survey on the use by, and usefulness to, SMEs in southern California of the financial and marketing services provided by non-profit agencies in that region. In this study, it is evident that government intervention in the form of public support is justified on the grounds that there are real externality problems. However, also evident is the fact that the existing public support may not be addressing the imperfections of the market mechanisms appropriately. Inefficiencies in the provision of export assistance are found in the areas of both marketing and export financing support. Based on the evidences provided by the available literature, and also from the findings of this study, policy recommendations and guidelines for reform are given. |
