A Study Of The Government Role In Enterprise Incubator Under The Financial Crisis Background

The U.S. sub-prime mortgage commenced in the early 2007 had been so intensive that it eventually upgraded to a rare global financial crisis in September,2008. As a result, the whole world has changed its pattern due to the severe recession of U.S. dollar and euro area as well as Japanese economy and the dramatic slowdown of the emerging economies, including China. The small and medium enterprises which occupy 99% of the entire Chinese enterprises were confronted with the crisis of policy mismatching, management puzzle, financing hardship, marketing barrier, and talents loss. However, risks and opportunities seem to be a contradictory combination. Thus, it is one of the best research subjects for the government to study how to start emergency management under the "crisis-ridden", play its holistic role on enterprise incubator, and support the venture of small and medium enterprises.From every possible perspective, the thesis studies the government role on enterprise incubator under the circumstances of economic crisis which marks the epoch. By introducing the background of enterprise incubator, at first it demonstrates the overall situation of the world enterprise incubator chiefly.And then illustrates the current development of the enterprise incubator in China specifically. It also studies the role of the government in the enterprise incubator.Through the questionnaire, it analyzes the influence of the financial crisis on the enterprise incubator of ChaoYang District in Changchun City, Jilin Province. Furthermore, in order to find out the ways to solve the problems, it studies the specific strategies to cope with the financial crisis in three countries—U.S.A., France, and Japan in which the government management on enterprise incubator has been relatively advanced. By the analysis and other comprehensive comparisons, the inspiration and the reference to the China's government role on enterprise incubator is proposed in the thesis, meanwhile, the present study lays great emphasis on the analysis of the crisis problems existing in the government management to deal with financial crisis in China. Finally, according to the problems exposed to the enterprise incubator in China, it puts forward to the proper and sustainable way that the government management acts on enterprise incubator.To start with the discussion from the review of the enterprise incubator emergence and the others' studies in the same fields, the thesis first introduces the development of the enterprise incubator briefly. At the end of 2008, in the whole world there are more than 7000 enterprise incubator, among which the number one is in America that owns more than 1000 ones. From the year 1956 in which the enterprise incubator emerged till today, it plays an important role in many aspects, such as the promotion of the high-tech industry, the support and assistance of the middle-small enterprises, the revitalization of local economy, and the expansion of employment, etc.. Due to the high attention from the government, the enterprise incubator has developed rapidly around the world. As the first scientific and technological enterprise incubator—Wuhan East Lake Innovating Center of New Technology was founded in Jun.1987, in Wuhan, China, the curtain of Chinese technological pioneering service obligation has been pulled up. According to the statistics made by the Torch Center of the National Science and Technology Ministry, the amount of 674 scientific and technological enterprise incubators from different levels have been established, which rank the third in the world. However, the incubating area, the number, and the success rate of the incubation located the first. The management of the government plays an important role in four aspects, namely basic facilities, policy environment, financial support, and social web. Through the questionnaire, the present study analyzes the influence of the financial crisis on the enterprise incubator of ChaoYang District in Changchun City, Jilin Province. The result of the questionnaire shows that the economic crisis has brought the influence to enterprise incubator in four aspects:1. the reduction of investing confidence due to the unknown future of enterprise incubator; 2. the slow growth of the incubating program for the broken of industrial chain; 3. the narrowing of the financial channel and difficult turnover of enterprises; 4. the relative decrease of construction input and production of the incubating resources.In order to find out the ways to solve the problems, the present study first analyzes the causes and the strategies used by the USA,France and Japanese government on management of economic crisis, the three countries in which the function of government management are relatively advanced. And then through the induction and comparison, it tries to conclude the enlightenment on the government management to enterprise incubators in China. If the dynamic equilibrium of he market has been broken by the economic crisis which gives rise to the failure of adjustment, the government in every country should be the main force to cope with the financial crisis, and they would become the protection umbrella for the middle-small enterprises with the most explicit attitude within the shortest time. Government should also play its full role in the management and instruction to enterprise incubators from different aspects such as policy, finance, service, and encouragement. The government management to enterprise incubator in USA, France and Japan can be taken as the references for China on three fold, namely the strictness of the incubation system, the powerful financial system, and the comprehensive social aiding service.The thesis further analyses the government management to enterprise incubator under the financial crisis and its problems, since the global economic had been silently killed by the attack of the financial crisis. China, however, with 60% foreign trade dependency, proved the great power of the government again, and responded to the world of the Questionnaire for Countermeasure of the Financial Crisis. Chinese government unveiled the package project to emphasize the support of the enterprise incubator to the middle-small enterprises. However, the financial crisis which performs like a developer that reflects the problems of the government management to the enterprise incubator. There are six specific problems:1. the unreasonable management and operation mechanism to prevent the performance of enterprise incubator; 2. the unclear bound and lack of supervision to expand enterprise incubator blindly; 3. the vacancy of law and the evaporation of support policy; 4. the single investment and the obstruction of finance; 5.the ambiguity of the planning of the prospect and the disorder of the cluster of the products; 6. the insufficient decrease of the revenue and the unreasonable.The author suggests that, on one hand, the financial crisis greatly damaged Chinese middle-small enterprises. On the other hand, it also provided the opportunities for us to find out the methods to address the problems. Therefore, Chinese government has to pay effort in the following seven aspects:1. to construct the cultural atmosphere for the inspiration innovation; 2. to set up the forum of solving the problem; 3. to improve the financial policy of realizing the diversified assistance; 4. to strengthen the government purchase guided towards the middle-small enterprises; 5. to construct the benefit protection system for autonomous; 6. to change the manage function into correcting "deviation, dislocation and vacancy"; 7. to explore new economic increasing point to form industrial defensive capability.The conclusion has been drawn from the study that the financial crisis is not terrible. So long as the government is able to realize the severity and start the managing system to overcome its own defect, can the function of enterprise incubators be better performed to protect, support, drive and aid the middle-small enterprises. The role Chinese government plays will be the policy maker of the pioneering and the operation mechanism of the enterprise incubator. It will be the supervise of the incubator field, as well as the macro-administrator to promote the sustainable development of enterprise incubators.