The purpose of this paper is to explore the relationship between macro and small business support policy. Recent Australian experience is used as a case study for the exploration of possible causal links in this policy relationship. This may provide a basis for evaluating the appropriateness of current policy approaches evident in countries that are focused on promoting a neo-liberal economic environment characterised by budget surpluses, low inflation, low public debt and privatisation policies, which are regarded as supportive of SMEs and entrepreneurial activity. This paper provides a basis for reflecting on the broader trend within modern capitalist economies, as typified by the Australian experience, to stimulate individual initiative and entrepreneurialism as a solution to contemporary social and economic problems.
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