Policy Government Procurement To Support The Development Of SMEs

In market-oriented economy, SMEs are an integral part in the economy. Aroundthe world, whether it is investigated from the history of the development of theWestern capitalist countries, or from the experience of the rapid growth of emergingmarket economies, SMEs obviously play an important role in promoting a country’seconomic growth. In general, SMEs are small-scale with flexible production andmanagement mode, and there is a very large number of the SME group. Based onthese characteristics of SMEs, they make great contribution in creating jobs,maintaining social stability, boosting GDP growth, promoting technologicalinnovation and promoting market competition and efficiency. Some excellent SMEscan seize the market opportunity, actively explore their innovative ability andultimately develop into the leading enterprises in the industry. Because of this,countries attach great importance to the development of SMEs. In academia, how topromote the development of SMEs is also a topics of widespread concern.But in the countries, including China, due to certain historical, political,economic, and social environment factors, the development of SMEs encounteredsome common problems, such as lack of liquidity, financing difficulties, narrowaccess to information, talent shortage and irrational tax structure. Especially in recentyears, because of the international financial crisis and the impact of domesticmacroeconomic policies, more and more SMEs in China fell into the developmentdilemma, or even bankruptcy. If these problems are not properly resolved, it will stiflethe prospects for the development of SMEs, thereby affecting the growth rate ofChina’s GDP, and even affect the overall development of the national economy.Therefore supporting the development of SMEs has extremely important strategicsignificance in maintaining our economic stability, social stability, and building aharmonious and well-off society.For supporting SMEs, government procurement is an effective and direct tool.Government procurement is an important part of national fiscal policy and expenditure management, and also one of the useful tolls which Governments use toimplement macro-control. Government procurement in China has made considerabledevelopment since the implementation of the Government Procurement Law in2003:the scale and influence of Government procurement grows, the legal construction ofgovernment procurement has made significant progress, the procedure hasstandardized, the quality and efficiency of procurement are continuously improved.More importantly, the government procurement policy functions continue to expandand the ability of macro-control of the government procurement gradually enhanced.As the cause of the continuous development of government procurement, governmentprocurement policy function of promoting the development of small andmedium-sized enterprises will have more solid foundation and is promising. Chinahas begun to pay attention to the support of the development of SMEs. China’sGovernment Procurement Law of Article9stated clearly that the governmentprocurement should contribute to the development of SMEs. Other policies andregulations concerning government procurement also make the same provisions ofprinciple in supporting the development of SMEs. On December31,2011, theMinistry of Finance and the Ministry of Industry jointly issued the Interim Measuresfor the government procurement to promote SME development. But we should alsosee that government procurement policies in supporting the development of SMEs isnot enough detailed. The issuance of the "Interim Measures" is difficult to doeverything for SMEs. SMEs will still meet a lot of difficulties in participating in thegovernment procurement.This article will take the government procurement as an unique perspective toexplore the problem of supporting SMEs, to find the status and problems that exist inthe process of government procurement to SMEs along ideas from theory to practice,put forward a number of policy measures and targeted on the basis of foreignexperience. Then to establish a policy system to support the SMEs with Chinesecharacteristics reasonably and actionably. The logical framework of this paper are asfollows:The first chapter is an introduction. In the introduction, this paper makes a deep description of the status and role of SMEs in our economy. The chapter also explainthe research background, research methods and possible innovation.The second chapter is theoretical analysis of government procurement policies insupporting SME development. This chapter discusses the character and classificationcriteria of the SMEs, elaborates the theory of SME supporting, describe the content,mode and mechanism of the Government’s policy system. This chapter is to lay thetheoretical foundation behind the participation of SMEs in government procurementanalysis.The third chapter is the status of the participation of SMEs in governmentprocurement. This chapter analyzes the current situation of China’s SMEs inparticipating in government procurement. The purpose of this chapter is to try tofigure out the problem and the crux of the SMEs participating in the governmentprocurement and to provide a basis for the proposed below.The fourth chapter is the experience and enlightenment of foreign governmentprocurement in supporting the SMEs’ development. This chapter attempts to usecomparative methods in economics research, analyze the policy systems of developedcountries in government procurement and to Provide a reference for our country.The fifth chapter is the policy Proposal of government procurement in supportingSME development. This paper think that the use of government procurement insupporting the development of SMEs must go with clear guidelines and principles,and we should have comprehensive consideration from both macro and microperspective.