SME And Development Of West Economy

On the basis of scientific definition of SME and relative theory, the essay, based on both qualitative and quantitative analysis, puts forward the definition standards of SMEs, which match to our nation existing ecoiTomic development level. It discusses SMEs' important functions in the development of localized economy and the experiences obtained from some developed and developing countries. It also specifies the relative advantages to develop the west and its main disadvantages that we are facing and SMEs' important and special role in the West Development. It has been proved that SMEs are the main forces in the construction of infrastructures and protection of ecological environment. As a leading agricultural enterprise , a high - tech enterprise and a labor - orientated enterprise that provide plenty of goods and services to the market, SMEs play a key role in the adjustment of the west industry structure and the formation of featuring economy. They are also forces to build small towns and prosper their economy. The essay emphasizes the necessity to reform SMEs' inner environment and establish the innovation mechanism. It also stresses on the importance of building a good external environment, including market environment, law environment, policy environment and social environment. It also points out that our social service system must be perfected and more efforts should be made to develop SMEs' technology and cultivate their talents.