Research On The Influence Of Tax Preference On The Competitive Advantage Of Smes

SMEs are an important part of China’s economic development,and the great role played by China’s economy has gradually been valued by people from all walks of life.However,in China,SMEs have weak competitive advantages in the industry.Due to the small scale of small and medium-sized enterprises and the inadequate management system of enterprises,the development of small and medium-sized enterprises in China is very difficult.To support the development of SMEs,tax incentives are a measure that will be adopted by countries all over the world.In the early stages of development,SMEs tend to have large investment expenditures,and at this time,corporate profits are meager.If there is no tax incentive,it will cause the company to bear excessive financial pressure.SMEs need to enjoy more tax incentives to meet their survival and development requirements.However,China currently has a large number of small and medium-sized enterprises,and the implementation effect of fiscal and taxation policies is not satisfactory.Tax incentives have limited support for the development of small and medium-sized enterprises.On the basis of this background,this paper first defines the concept of SMEs and enterprises’ competitive advantage,and analyzes the basic function and mechanism of tax incentives affecting SMEs.Then it analyzes the development status and existing problems of China’s SMEs,and also sorts out a series of tax incentives for SMEs in China.Combined with the actual situation,the problems of these tax incentives are analyzed.After the empirical analysis,this paper puts forward the following three research hypotheses on the basis of theory: First,tax incentives can enhance the competitive advantage of SMEs;Second,tax incentives affect the financial strength of enterprises through the income effect of taxation,which in turn affects enterprises.The competitive advantage;third,the effects of tax incentives will be different at different stages of development.This paper selects the data of listed companies in the GEM and the small and medium-sized board,and conducts data screening according to the criteria such as the definition of SMEs,and sets up the variable construction model for relevant empirical research.The results show that in all the samples,tax incentives have a significant impact on the competitive advantage of SMEs.Then,this article adds different financing constraints and returns.The results show that for SMEs,tax incentives are indeed to enhance the competitive advantage of SMEs through corporate financial strength.Moreover,for SME investment,tax incentives are different for enterprises in different development periods.Finally,the paper puts forward relevant policy recommendations based on theoretical analysis and empirical results.