This chapter examines SME and entrepreneurship policies in Libya, including the institutional framework and programmes. It analyses co-ordination mechanisms, business support services and financing and initiatives. While the government has initiated several policy measures and programmes to bolster the SME sector – such as financial assistance and programmes to support start-ups through entrepreneurship training, information and advice – the review identifies a number of policy gaps. Broader and deeper measures and enhanced institutional structures are needed. The chapter also highlights opportunities for development of sectors that could lead to greater diversification of the economy outside the hydrocarbon sector and future growth of the SME sector.