Research on Small and Medium-Sized Enterprises Promoting Policy
In China, SMEs play a vital role in the economy, and the degree of fiscal policy supporting influence development of SMEs. By learning from foreign experiences, government should design the fiscal policies necessary in order to promote SMEs. On the other
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Research on Small and Medium-Sized Enterprises Promoting Policy Pingyu Liu and Heng Xie
Abstract In China, SMEs play a vital role in the economy, and the degree of fiscal policy supporting influence development of SMEs. By learning from foreign experiences, government should design the fiscal policies necessary in order to promote SMEs. On the other hand, survey indicates that SMEs confront several problems. For instance, financing difficulties, heavier tax burden, inability of scientific and technological innovation, and the lower degree of SMEs cluster. The gap between State-owned Enterprise and SMEs will be increased without government support. Therefore, this paper aims to find the problems and propose to implement the necessary fiscal policy through investigating the financing of SMEs.
Keywords Small and medium-sized enterprises Policy Financing Innovation
29.1 Introduction Since 30 years of reforming and opening up to the world, there has been a tide when the Small and Medium Enterprises (SMEs) grew up fast [1]. SMEs have become an important and indispensable force in revitalizing the old industrial bases, and SMEs are also important players in the development of local economics and communities. SMEs have played an important role in the development [2].
P. Liu (&) H. Xie Shaoyang University, Shaoyang, Hunan, China e-mail: [email protected]
Y. Yang and M. Ma (eds.), Proceedings of the 2nd International Conference on Green Communications and Networks 2012 (GCN 2012): Volume 5, Lecture Notes in Electrical Engineering 227, DOI: 10.1007/978-3-642-35398-7_29, Ó Springer-Verlag Berlin Heidelberg 2013
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29.2 Current Status of SMEs SMEs have a large proportion of the total output or employment. The data show that SMEs account for over 99 % of enterprises and over 57 % of the total industrial output value [3]. Second, SMEs provide employment opportunities. SMEs account for as much as 67.37 % of employees and they are expected to provide many new employment opportunities. The distribution of SMEs has the typical industrial characteristics. The number in wholesale, retail, and the manufacturing industry accounted for 82.65 %, which is higher than the 69 % national average. Employees in the wholesale, retail and the Manufacturing accounted for 64.32 %, which is lower than the average level 67.37 % of our country [4]. However, the employees in manufacturing industry accounted for over 50 % of the total number of employees. This feature is closely related with the old industrial.
29.3 Current Problems At the end of 2008, the research group conducted a survey involving manufacturing industry, commerce, construction, electric power industry, the financing situation of 120 SMEs. We find the following problems in SME financing: Most SMEs are Excessively Dependent on Bank Loan Most of SMEs with small scale capital and not having the qualifications for being listed companies, which makes the financing channels for SMEs, is very single. Survey showed that 90 % of the respondents in answer
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