The Research Of Guiding Policy For Shanghai SMEs’ Tranasformation And Development

In recent years, with further development of the economy andpromotion of the deep reform and opening up, deep contradictions ofirrational economic structure in China become increasingly apparent. Thestrategic adjustment of economic structure, which is promoted byworldwide economic crisis, is much more urgent. The report of18th CPCNational Congress clearly points out the implementation of theinnovation-driven development strategy, carrying out strategic adjustmentof the economic structure and improving the industrial structure.As the main body of the market economy, Enterprises are also forcedto promote innovation-driven development and economic structuraladjustment. For the number of small and medium enterprises accounts forthe vast majority of all the enterprises, the extent of implementation ofthe "innovation-driven, transformation and upgrading" strategy is mainlydependent on the transformation and upgrading of SMEs development. In recent years, because on the one hand SMEs in Shanghai areinfluenced by the appreciation of RMB and raw material pricefluctuations at the macro level, on the other hand at the regional levelthey are also restricted by land resource constraints, the high businesscost, labor cost increases and other factors, these enterprises faceprominent problems in marketing environment such as exchange rate risk,financing difficulties, operating costs. There are also some drawbacks forthese SMEs themselves like weak technical strength, backwardmanagement, poor competitiveness, the lack of funds and humanresources. All these problems have severely affected Shanghai SMEs,especially these in traditional areas business was, even threat the survivalof these companies. The transformation and upgrading of SMEs inShanghai is very urgent.As Chinese market economic system is still not perfect, the marketcannot play a decisive role in allocating resources. There are alsorestrictions on the development of SMEs and their ability. Hence, it iscompelling obligation of government to guide and support SMEs totransform. How to play its own functions and leading and supportingSMEs through technical innovation, management innovation, andbusiness model innovation, to achieve their own transformationupgrading and development, has become a new task for the government. With the help of theory guidance like corporate life cycle theory,innovation theory, new public management theory and market failuretheory, this article researches the current development status of SMEs inShanghai, urgency and influencing factors of transformation andupgrading of SMEs. Through learning from the successful experience ofsupport innovation and development of SMEs in foreign developedcountries, the policy in guiding the SMEs of Shanghai to transform andupgrading is proposed.This paper is divided into six chapters. The first chapter isintroduction. In the second chapter, small and medium enterprises aredefined. The meaning, ways and theory analysis of transformation andupgrading of SMEs are also introduced. The third chapter mainlyanalyzes policy, solutions, current situation and problems in Shanghaiguiding SMEs to transform and upgrading. In the fourth chapter, theexperience and inspiration of how to guide SMEs to transform andupgrading are introduced. The fifth chapter mainly proposes policymeasures and suggestions. The sixth chapter is the conclusion.