A Public Policies Study On Supporting The Development Of China’s Small And Medium-sized Enterprises

With the continuous progress of China’s economic reform, small and medium-sized enterprises (SMEs) play a more prominent and important role in China. The number of SMEs has been a great advantage, play a huge role in social employment, technological innovation, SMEs will inevitably become a growth point in the future economic development. The importance of SMEs has been recognized around the world, SMEs will be the main force of economic development in21century.However, the scale of SMEs is relatively small, relatively weak ability to resist risks, in competition with large enterprises are not dominant. It leads to the development of SMEs in the process of financing difficulties, serious vicious market competition. So the development of SMEs needs public policy support.The government of China has adopted series of policies to support the development of SMEs. Now facing with new situation, the further development of SMEs needs more public policies.The market mechanism is not perfect. The international successful experience also tells us it is necessary for pubic policies to support the development of SMEs.From the study of current situation and problems of SMEs in China, this paper analyzes the reason why SMEs in China are still clogged. Then I summarized the public policies about SMEs from1949to2013to find out the flaw. The government has formulated many public policies to support the development of SMEs in China. We need to draw on the experiences of other developed countries such as America and Japan. At last this paper analyzed the mentality of public policies to support the development of SMEs in China.In the first part, this paper compared the definition standard of different country and selected the new definition in2011as the basis of the study. I also introduced some of theories about SMEs and public policies.In the second part, this paper studied about the current situation including total amount and the distribution of SMEs in China, and then analyzes the reason why SMEs in China are still clogged.The third part of this paper reviewed the public policies on supporting the development of SMEs in China from1949to2013, especially reviewed the public policies from2003to2013. I still introduced three special projects on SMEs in China, and analyzed the public policies on SMEs in both America and Japan.Based on the previous part, part IV analyzed the market and government allocation of resources. Market mechanisms play an important role in allocation of resources. However, the market mechanisms need the government to establish and maintain resources. At the same time, the market itself cannot solve the problems of market failure. There are many problems of market failure in the process of SMEs development. So, the government needs to use public policies to solve these problems.The last part of the paper gives series of advice to solve the problems of market failure in the process of SMEs development.