This study examines the perspective of diaspora-owned small- and medium-sized enterprises (SMEs) regarding the application of SME policy in Taiwan. Specifically, it focuses on comparing the periods before and after the launch of the New Southbound Policy (NSP). The aim is to investigate how the SME policy supports diaspora entrepreneurs in Taiwan based on their viewpoints. To explore this relatively unexplored concept, qualitative methods with descriptive and exploratory designs are employed to gain a deeper understanding of their perspectives. This study includes in-depth interviews conducted with six Indonesian diaspora-owned SMEs in the restaurant industry, as well as two individuals planning to establish new restaurant businesses in Taiwan. The respondents are categorized into three groups: those who operated their businesses before the NSP was implemented, those who did so after the NSP was implemented, and those planning to launch businesses after the NSP were implemented. The findings of the study reveal that the number of diaspora entrepreneurs owning SMEs has increased under the NSP. The NSP has also attracted diaspora individuals with an intention to start SMEs in Taiwan. The ease of accessing startup procedures and obtaining loan financing has positively contributed to their businesses. Additionally, intermediary groups such as diaspora associations play a crucial role in facilitating open forums between the diaspora and the government.