Is It Possible For New Sme Boards To Receive Government Subsidies

As everyone knows,small and medium-sized technology-based enterprises(tech SMEs)is a primary driving force of technological innovation in China,and they have increased employment and have promoted China’s scientific and technological achievements as well.The final value of the products and services created by them is equivalent to about 60% of GDP,and the amount of tax paid by them is up to about 50% of the total tax revenue,providing nearly 80% of urban jobs.Compared with large enterprises,It is quite a tough job for these tech SMEs to obtain government grants.Varieties of reasons may account for this: First of all,the quantity of tech SMEs is so large that the government can not cover all of them.Secondly,these tech SMEs are in a small scale without standardized administration.Lastly,the majority of them are private with insufficient communication and own low credit.Based on the above reasons,tech SMEs are less likely to get access to institutional investors’ and government’s favor.Now the new OTC market has provided a great platform for tech SMEs to list transactions,by means of which tech SMEs can be transformed into public companies,and the administration can be more standardized,so it will be easier for them to get support with the aid of the government.Whereas,will it really be easy for tech SMEs to attain government grants? Can government grants really contribute to their own development and growth? Therefore,we use the 266 companies to make a comparative analysis to study the following question: Whether it is easier for tech SMEs to obtain government grants after the new OTC market listing.In this paper,via four aspects: the enterprise’ ownership,its industry category,regional disparity,and the profitability,we have analyzed this topic and come to the conclusion that it is easier for tech SMEs to obtain government grants after the new OTC market listing.Asfor the distribution of government grants,firstly,state-run companies are more inclined to obtain government grants.Secondly,in various industries,manufacture enterprises tend to get grants more easily before the listing,while after the listing,information service companies have more opportunity to attain government grants.Thirdly,in different regions,more government grants go to eastern parts with developed economy.Despite a significant rise in the western regions,the intensity of government grants is still weak there.At last,the government grants are more intended to companies suffering a loss in the expectation to assist them turn around.As for the small and medium-sized enterprises around the country,they should seize the opportunity to list in OTC market and regulate their development,thus gaining institutional investors’ and government’s favor.As for the government,the initial grants to local listed companies conducive to building up local outstanding enterprises,promoting the development of the local economy.Whereas,in the long run,government grants will gradually decline and the continuous grants to OTC market will only increase the reliance of those enterprises.