The Japanese government is taking unprecedented steps to nurture its nation's small- and medium-sized enterprises (SMEs) -- and their potential to sustain economic reform through labor flexibility, technological innovation, and new employment. In late October the Japanese Diet convened a session to strengthen SMEs and make venture capital more available to them. Under current basic law on SME, policies were focused on transforming small companies into large corporations rather than capitalizing on their potential as SMEs. Objectives of proposed new SME legislation: