Small- and medium-sized entities (SMEs) are engines for growth and employment, and are vital to the sustainability of economic development. They are arguably more innovative in bringing new products to market and in creating entirely new markets than larger, more mature companies.  Around the world, they account for the majority of private sector employment and Gross Domestic Product. IFAC recognizes the public interest imperative of supporting SMEs and the small- and medium-sized accountancy practices (SMPs) that serve them.

SMEs often look to SMPs for a range of professional services, both to help them comply with regulation and to enhance their business performance.  At the same time, SMPs and SMEs are confronted by a range of operational, financing, market, and regulatory challenges. IFAC’s Small and Medium Practices Committee works to address these challenges by developing guidance, representing the needs of SMPs in its input to standard setters, and working to raise awareness of SMPs’ value and their role in supporting the SME sector.