This chapter provides a profile of the small and medium-sized enterprise (SME) sector as a background for the SME policy review conducted in this document. A description of the macroeconomic environment is followed by an analysis of the structure of, and recent trends in, the SME sector. The size of the SME population has been estimated; the profile of entrepreneurs in the Republic of Moldova is based on data emerging from Labour Force Surveys (LFS). This section is followed by a review of the evolution of the business climate and a presentation of the SME institutional framework and of the various programmes being carried out with the support of the donor community. The chapter concludes with a set of final considerations on the issues faced by SMEs in the Republic of Moldova and the identification of a number of key structural factors that may constrain the development of this sector.