This report examines through empirical research and policy analysis the internationalization process of Small and Medium-sized Enterprises (SMEs), shedding light on the key factors, challenges, and strategies essential for harnessing the global potential of these dynamic enterprises. The objective of this report is to offer a practical guide to policymakers for the promotion and facilitation of SMEs inward and outward investment. It aims to identify ways and means both to attract FDI by (foreign) SMEs and to support the internationalization of (domestic) SMEs, to maximize their development benefits. The report presents new insights and real-world examples of SMEs that have successfully navigated international markets, emphasizing the lessons learned and best practices and illustrating the impact of supportive government policies and initiatives on SMEs' global ventures.