Introduction

Public policies often have differing objectives. In an ideal world, these different goals would be compatible and complementary, fitting neatly alongside each other; as the oft-misquoted lines from Kipling's poem above prima facie suggests, they would not meet or conflict. In truth, however, Kipling was highlighting the exact opposite, as becomes evident when one reads the whole poem.

The same applies to public policy. The rules, programmes, laws, and assistance made by government, legislatures, and other arms of the state can and often does overlap, and sometimes even conflicts with each other. In this chapter, we explore the potential conflict between two sets of policy: competition and small to medium-sized enterprise (SME) policies. Are they strange bedfellows? And is there a “middle way” in which the two can successfully work alongside each other?

In theory and intent, they both should benefit SMEs. Competition policy seeks as level a playing field as possible in the economy, through the enforcement of competition law and the opening up of sectors in the economy to competitive dynamics.