Small businesses are important foremployment creation and growth in Chile. They provide 73percent of all private sector employment; half inmicro-businesses (own account and firms employing fewer than10 employees). But small business average growth was only2.8 percent from 1994- 2000, less than half the 6.4 percentof large businesses. President Ricardo Lagos considersChile's incorporation into the global and digitaleconomy a top priority: "we are discovering thattechnology will enable us to surmount the geographicaldisadvantages of our nation. It is our obligation to takeadvantage of it to the fullest" (Inauguration speech,Santiago Times, November 24, 2000). The national strategy,"Chile: Toward the Information Society" lays outfive key areas for digital development: technologyinfrastructure; community and business access; the legalframework for electronic transactions; education; andgovernment services. Responding to this agenda, the WorldBank's "Chile: Accelerating E-Business For SmallBusiness Innovation and Growth" (November 2002)profiles Chile's small business sector, benchmarkse-business progress in Chile in relation to OECD countries,reviews public policies and programs emerging in Chile topromote e-business among small firms, and identifies somelessons from experience. Finally, it suggests measures thatmight accelerate and deepen e-business adoption in Chile.This work is a part of a larger forthcoming sector report bythe Bank on Chile's new economy.