Micro, Small and Medium Enterprises (MSMEs) make-up the overwhelming majority (approximately 98%) of all enterprises in most countries, including Bhutan. The MSME policy of the Royal Government of Bhutan (RGoB) has been developed for the following main reasons: To ensure that there is a comprehensive policy for MSME development, given their importance to the overall economy; To prepare MSMEs for the challenges of globally integrated markets and the growing levels of competition; To ensure that the private sector generally and the MSME sector specifically play an increasing role in fostering economic development; To generate employment and support equitable distribution of income and bring about more balanced regional development for poverty reduction; and To foster the development of the MSMEs by adopting international good practices.