The Small and Medium Industries Development Corporation (SMIDEC) was established on 2nd May 1996. The establishment of SMIDEC was in recognition of the need for a specialised agency to further promote the development of Small and Medium Industries (SMIs) in the manufacturing sector through the provision of advisory services, fiscal and financial assistance, infrastructural facilities, market access and other support programmes.

SMIDEC strives to create resilient and efficient Small and Medium Enterprises (SMEs), able to compete in a liberalised market environment. The Corporation will promote SMEs to be an integral part of the country's industrial development capable of producing high value-added parts, components and finished products. SMIDEC will serve as the national focal point for the overall development of SMEs in the country.

Objektif utama Kementerian adalah untuk menyediakan persekitaran yang membantu dan menggalakkan pembangunan usahawan tulen yang berkualiti, berdaya maju, berdaya tahan dan berdaya saing dalam semua sektor serta memupuk budaya keusahawanan dan koperasi di kalangan rakyat Malaysia.