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This report is the result of a research project that strictly evaluates the net impacts of participation in small and medium enterprise (SME) programmes in four Latin American countries: Chile, Mexico, Colombia and Peru. The objective of the research was to determine which programmes improve SME performance and to obtain information as to why some are more effective than others. These findings imply that the pessimism of the first evaluations of the programmes for these enterprises may be due in large part to the methodologies used. The generally positive results of these country studies using more refined techniques suggest that the pessimistic view needs to be reconsidered and that governments and international development organisations should use some of the evaluation techniques described in the report to gain a better understanding of the types of initiatives that work best and why. In turn, this information can be applied to improving existing projects, reducing those that have proved ineffective and scaling up successful experiences to further improve SME performance, economic activity and employment.