The purpose of this review is to critically examine a range of donor initiatives that have adopted a value chain approach as part of their policy package for promoting the growth of small and medium enterprises (or in some cases, such as USAID, micro and small enterprises). Specifically, the purpose of the review is to provide an assessment of current strategies that will enable engagement with donors and other interested partners about knowledge gaps, the viability of different types of donor intervention and the key challenges for linking Small and Medium Enterprises (SMEs) development to poverty reduction.