Belarus has recently taken a more pro-active approach to supporting private entrepreneurship by promoting its small and medium-sized businesses (SMEs). The value of private sector participation in the economy is increasingly acknowledged by the government and steps are being taken to develop a comprehensive SME support policy. SME growth could be fostered through further liberalisation of economic activities which is only progressing at a slow pace.Creating supportive policies for SMEs will only yield tangible results if progress in privatisation leads to the opening up of new business opportunities for private entrepreneurs in Belarus. Alternatively, privatisation is more likely to succeed in creating a vibrant SME sector if an enabling policy framework is in place that allows entrepreneurship to thrive.