This chapter covers in depth the progress made by Montenegro in implementing the Small Business Act for Europe (SBA) over the period 2016-18. It starts with providing an overview of Montenegro's economic context, business environment and status of its EU accession process. It then provides some key facts about SMEs in the Montenegrin economy, shedding light on the characteristics of the SME sector. It finally assesses progress made in the 12 thematic policy dimensions relating to the SBA during the reference period, and suggests targeted policy recommendations.