The importance of small and medium size enterprises (SMEs) for economicdevelopment is frequently debated. SMEs have been called “the backbone of the European economy and the best potential source of jobs and growth”. Political intentions are expressed in numerous programmes, strategies, and organizations, all claiming that their objective is to assist SMEs.

The purpose of the thesis is to explore the interaction between politicalaspirations and adequate solutions to SMEs’ challenges.

The thesis adopts a comparative perspective, using two completely differentcultural, institutional and historical contexts, the Italian region Tuscany and theCounty of Jönköping. The study follows bottom-up logic, starting off withinterviewed businesspersons’ and other actors’ narratives on how they organizeto face and deal with challenges and opportunities. The challenges andpossibilities and the problem solving processes described by SMEs are outlinedthrough the identification and description of four case studies.

Narratives by businesspersons and other actors indicate that only a few of theaspirations and strategies expressed by politicians and decision makers, whoelaborate the objectives of SME policy, actually reach enterprises. A gap seemsto exist between aspirations and realization. The study suggests that animportant part of the explanation to the missing link is found in the differentlifeworlds of SMEs, politicians and other decision makers.

How can the gap be bridged? The study concludes that policy is not statementsonly; it is organizing. For organizing to ensue, individuals with a commondefinition of challenges need to get together. The concept of lifeworlds cannotbe ignored.