Theoretical And Empirical Study Of SME Development And Employment Growth

The report of the Seventeenth National Congress states that "the development strategy of expandingemployment, promoting entrepreneurship to create jobs. Employment is the Thing. To adhere to theimplementation of active employment policy, strengthen government guidance, improve the marketmechanism for employment, to expand the scale of employment, improve the structure of employment."Given the large working population, the country’s employment situation is difficult as each year more thansix million college graduates, with the urgent need to accelerate the urbanization process, the transfer of alarge rural population, and both the unemployment rate in the labor force in this rapidly enlarge adenominator. To reduce unemployment, increase employment, the only way is to broaden employmentchannels and create a lot of work to develop the enterprise.Throughout our various enterprises, the contribution of SMEs to promote employment is so big. Thenumber of SMEs in China has more than42million, accounting for more than99%of the total enterprises,SMEs create60%of the gross domestic product, to solve75%of the urban working population, topromote China’s economic growth, address the labor force employment has played an increasinglyimportant role, has become China’s sustained economic development to promote social harmony andstability of the key factors.Thus, the development of SMEs and employment, there is a close relationship. However, the currentresearch results are often biased towards one more concerned about the development of SMEs, oremployment, there is no relationship between the two in-depth study. China’s current severe employmentsituation and the growing social contradictions eagerly awaited a solution, in the promotion of economic growth to solve the employment of the Thing. In this practical sense, this paper attempts on thedevelopment of SMEs, promotion of employment and an explanation of the problem.This aggregate analysis and structural analysis using the method of combining the use of2004-2011,"China Statistical Yearbook" and "Yearbook of Chinese small and medium enterprises," the relevant data,the total employment growth of SMEs and employment structure and incremental the overall analysis, andtake advantage of employment flexibility and job creation contribution of these two indicators, from theperspective of industry and industry employment growth of SMEs development.Second, empirical research and normative uses a combination of research methods, this problem inthe development of SMEs and employment on the basis of this empirical analysis to explore the small andmedium enterprises to develop the role of growth in employment; further pointed out that employmentgrowth of SMEs in China direction of development, and made a number of relevant policyrecommendations.This new breakthrough in the study of perspective, the number of jobs and industry from theperspective of structure, flexibility and employment through the employment contribution of these twoindicators measure and sort of promotion of SME development and the relationship between employmentgrowth to the research and study, and to analyze based on the conclusions put forward to promotedevelopment and employment growth of SMEs in China coordinated policy recommendations.The analysis revealed that small and medium enterprises in various industries in China is widespreadand the number of firms in a dominant position in these industries, new jobs in these industries is a majorcontributor. Among them, the industrial enterprises in communication equipment, computers and otherelectronic equipment manufacturing, electrical machinery and equipment manufacturing, transportationequipment manufacturing, textile and garment, shoes, hat manufacturing, fabricated metal products, furniture, general equipment manufacturing industry, the agro-food processing industry, plastic productsindustry; construction; major services in the wholesale and retail trade, accommodation and cateringservices are efficient employment and employment potential of the industry, has a strong ability to absorbemployment.Based on the above findings we can see, our country should be based on the principle of givingpriority to employment, to increase employment as the goal, to develop small and medium enterprises, tocreate a relaxed environment, policies and regulations, establish an information platform to providesupport services to promote healthy and sustainable development of SMEs, then solve the increasinglyserious employment problem in China, to increase income, reduce the gap between rich and poor, alleviatesocial contradictions, the establishment of a harmonious society to provide a stable economic base.