Study On Fisical Support For The Financial Difficulty Of China’s Small And Medium-sized Enterprises

Small and Medium-sized Enterprises (SMEs) is an important part of the national economy, playing a strategic role in every country’s development including China. Economists from all countries have a common idea that SMEs will be the main force of economic development in21century. SMEs play a more prominent and important role in China, which is the largest developing country.To enhance China’s economic growth energy, to broaden the employment opportunities, to maintain social harmony and stability and to build the innovative country, we must devote major efforts to develop SMEs, and this has important strategic significance.However, judging from the development of the world economy, we can see SMEs have exposed some deep problems in the developing process. The outstanding problems are the backward technical level, the low labor productivity, the lack of capacity of competition, and the hindered financing channel, etc. These problems have brought SMEs certain difficulties for their sustainable development. In view of the small and medium-sized enterprises face the realistic environment, since1990s, with international economic integration and new deepening economic revolution, the developed countries were actively supporting the development of SMEs. A lot of government officials, economists, and management experts are paying more attention to SMEs and taking this up to strategic degree. Governments are adopting different fiscal policies to support and promote their growth and development of SMEs.China is paying attention to the reform and development of SMEs in nearly ten years. In June2002, in order to improve management environment of SMEs, to promote their healthy development, to increase employment rate, and to give free rein to SMEs to play the important role in the national economic and social development, China has formulated and promulgated the SMEs promotion law, which went into effect in January2003. It is a special law to support and promote SMEs, making specific provision about capital supports, entrepreneurship supports, technology innovation, market development and social services. Meanwhile, appropriate fiscal and tax policies and suitable measures are taken to support the development of SMEs, which do have a long-term effect.