The SME Competitiveness Index is a measure of the competitiveness of small and medium-sized enterprises (SMEs) in different countries. It is designed to assess the ability of SMEs to compete in local and global markets, and to identify the key drivers of competitiveness that can help SMEs grow and succeed.

The importance of the SME Competitiveness Index lies in its ability to provide a benchmark for countries to assess their policies and programs that support SME development, and identify areas for improvement.

The index measures a range of indicators related to SME competitiveness, such as access to finance, technology and innovation, skills and human capital, entrepreneurship and innovation, and access to markets. The index also provides a ranking of countries based on their overall SME competitiveness score.

The SME Competitiveness Index can affect a country's competitiveness rank by highlighting the areas where it needs to improve in order to support SME growth and development.

For example, a country that ranks poorly in access to finance for SMEs may need to develop policies and programs that increase access to capital, such as creating a supportive regulatory environment for private sector investment or developing specialized SME lending programs.
Similarly, a country that ranks poorly in entrepreneurship and innovation may need to create policies that encourage the development of new ideas and business models.

Overall, the SME Competitiveness Index is a useful tool for countries to assess their policies and programs that support SME development and identify areas for improvement. It is also an important resource for SMEs themselves, as it provides information on the competitiveness of different markets and can help them identify new opportunities for growth and expansion.

The World Bank produces an annual report called the "Doing Business" report, which includes a section on the "Ease of Doing Business for Small and Medium Enterprises" that measures the regulatory environment for SMEs in different countries.

Similarly, the International Finance Corporation (IFC) produces an annual report called the "SME Competitiveness Outlook" that assesses the competitiveness of SMEs in different regions of the world.