This paper will review the small and medium-sized enterprises (SMEs) and entrepreneurship finance policies and practice in OECD countries by gleaning the best evidence available.The paper treated SME financing as a governance issue and applied the governance analytical techniques.Thestudy integrated both the supply and demand sides of the SME finance in the analysis of SME access to finance, credit reporting, alternative financing options, financing innovation and The situation of market failure.The review fimd that Australia has falling far behind the other OECD countries in making efforts to understand the demand of small business financing and hence failed to respond to such unmet needs due to lack of solid evidence.Good practice and lessons learned are summarised from the review in a view that this may shed light on the policy development for SME and Entrepreneurship finance in Australia in the future.