An Research On Regulation: Focus On Improving The Regulation On SMEs In Suzhou

In this paper, a tool developed during the Doing Business project, the theoretical basis of which is from the New Comparative Economics, and the Economics of Regulation, is applied to measure the regulatory system for Small and Medium-size Enterprises (SMEs) in Suzhou.The results show that during ten regulative activities on Small and Medium-size Enterprises (SMEs) in Suzhou, registration of property, access to credit as well as cross-border trade scores higher, but socores of enterprise starting-up, application for building permits, the employment of workers, the protection of investors, paying taxes, contract execution and corporate bankruptcy are not satisfactory, which are significantly lower than that of Australia, South Korea, Japan and the United States.Major gaps are as follow, first, the laws and regulations set complex procedural requirements; second, implementation of procedures cost long period of time; third, the cost in fulfilling these requirements and implementing these proceduires is high. Thanks to complex requirements, long time, high cost of complying the regulation, some enterprises seek to avoid these regulations, which makes regulatory system exists in name only, or some face more difficulties in production and operation. Both are not benign, and therefore it is imperative to reform.According to principles of the regulative reforms proposed in the Doing Business Project, the author specifies three fields where regulative reform should be implemented. First, enhance the efficiency of regulative agencies on SMEs by using the Administrative Service Centres; second, reduce and simplify unnecessary administrative procedures by applying internet technology more; third, take into account making study tours in other countries and regions with excellent business regulation, learn from the experience they gained and advanced technology used there.