"In this study Lyal White explains the need for 'government involvement' in 'helping the SMME sector to evolve'. This paper describes the SMME strategy undertaken in Brazil. It looks at various aspects of the Brazilian economy, the status of SMMEs at present and discusses the policies and initiatives that have been implemented by the Brazilian government. These include legislative and tax incentives that have encouraged a more formalised SMME structure.This report includes a mini case study on Lesotho."