This project supports Eastern Partner governments in developing better institutional frameworks for the private sector and for small and medium enterprises (SME) in particular. It assists governments in preparing SME strategies and action plans, designing results-based monitoring systems, and introducing public-private dialogue to inform policymaking and monitor progress in reform implementation. This phase of the project addresses the digitalisation of SMEs as a priority.

The main objective is to:
i) monitor progress in reform implementation since the previous assessment,
ii) identify emerging country-specific priorities for SME policy,
iii) assess the state of play as regards policies to promote SME digitalisation.

This thematic focus will look at areas such as the regulatory environment for digital business practices, financing constraints for digital investments, and specific programmes to promote the uptake of digital skills and technologies. The assessment will also provide recommendations to accelerate the digital transformation of the SME sector in the Eastern Partnership in line with EU and OECD best practices while providing an overview of the ongoing activities to support those objectives.

The long-term expected result of this project is to support competitiveness and SME policy reforms in the countries of the Eastern Partnership, with a focus on SME digitalisation. In particular, the project is expected to foster improvements leading to:
- Improved strategic policy framework for private sector development (strategies/action plans)
- Enhanced institutional capacity of the government to deliver support to the private sector, including via digital channels (e.g. electronic identification, paying taxes, e-customs, online training)
- Increased digitalisation of SMEs (e.g. e-commerce, digital supply chains, digital skills)
- Enhanced capacity to monitor the implementation of government policy
- Enhanced contribution of business associations to policy-making processes
- Fourth SBA assessment published, disseminated, and used for policymaking
- Peer reviews on competitiveness reforms carried out
- Increased regional policy dialogue and exchange of good policy practices.