Case Study On Business Supporting Polices Of China's Small And Medium Enterprise

This paper mainly discusses the legislative protection of small and medium enterprise under the condition of the current market economy. In the three decades of reform and opening up, China's small and medium enterprises have made great progress, and have been playing an important role in various areas of the national economy. The central committee of C.P.C. and the state council have attached great importance to the development of SMES, formulated a series of general and specific policies and promulgated a series of rules and regulations .The National People's congress has issued SME promotion law, providing a legal form for promoting the development of SMES. But the SMES have a weak position in fierce market competition, for its "inborn weakness", and often suffer from a variety of market participant's squeeze. What's more, the development environment is not optimistic. The starting an undertaking of SMES have to depend on the government's support to great extent. In our country, MES started fairly late, while the market mechanism is not perfect and mature by now, so its proportion in the total amount of the capital market in GDP is very small. The starting an undertaking of the SMES is limited by many factors, for example: the way to get capital is not smooth; and venture invest is not developed and so on. Our country has introduced some relevant legislations, but these legislations lack system and pertinence. While most researches emphasized particularly on the theory, and seldom of them refer to how to solve the real problem. This paper, aiming at the reality that legislation of SMES lag far behind their development and learning from the experience of foreign legislation, analyze how to set up supporting system suited for SME entrepreneurs to promote and perfect the development of SMES in China from the laws, policies and social security point of view. Besides, this paper, by studying of SMES in some regions and using comparative research method, qualitative and quantitative research methods, analyzed and summarized the legislative environment of SMES in China. Later on, the current legislation in China is anatomized and some existing problems and shortcomings are identified. Lastly, from the legislative protection perspective, drawing on the practice and experience from some western countries where the development of SMES is of representative, this paper clearly suggest that China should construct a legal system with protecting small and medium enterprises as the core, combining with the local policy and social service system for SMES legislation and that should create a reasonable ,sound legal environment to promote and to ensure SMES healthy and rapid development.Sum up, this paper, applying the modern economic and finance theory and combing with the proper methods and the reasonable arrangement and starting with market access, corporate organization, personnel, capital and other aspects. undertake an in-depth and detailed analysis and study of the difficulties and problems of China's SME business supporting legislation and puts forwards more specific measures and suggestions.