Micro & Small Enterprises Sector & Financing Problems Solving Featured in New Research by China's Economy & Policy-Gateway International Group
28 Jun 2012 • by Natalie Aster
Micro and small enterprises (MSEs) are of great significance for stable and rapid economic development, but the rising costs of production, financing problems, and non-standard market environment have imposed substantial development pressures on these entities. The government has started to introduce a series of new support measures for MSEs since last year.
The research «Solving the Financing Problems for Micro and Small Enterprises in China» by China's Economy & Policy-Gateway International Group analyzes the functions of MSEs and their financing problems and propose basic solutions for these issues.
Solving the Financing Problems for Micro and Small Enterprises in China
Published: May, 2012
Price: US$ 200,00
The government has attached more and more importance to solving the financing problems of MSEs in recent years because these enterprises have played an increasingly important role in the economic and social development of the country.
First, developing MSEs can promote employment. MSEs are the most important constituent of small and medium-sized enterprises (SMEs), but there are no accurate data showing how important they are in the national economy. However, the position of SMEs in the national economy can be summed up as “five, six, seven, eight, nine”, in which “five” means that the tax contribution of SMEs accounts for 50% of the total taxes, “six” means they account for 60% of the GDP, “seven” indicates that they account for 70% of total imports and exports, “eight” represents the fact that they account for 80% of the employment, and “nine” means that SMEs represent 99% of the total number of enterprises. With respect to employment, in particular, it used to be said that SMEs accounted for 80% of urban employment, and this mainly refers to MSEs.
Second, developing MSEs can promote innovation. Developing MSEs is the main channel for providing new job opportunities, the main platform for entrepreneurs to start and grow a business, and an important force for scientific and technological innovation. In addition, statistics from the State Intellectual Property Office (SIPO) has shown that by the end of 2011, MSEs had completed 65% of the patent applications for new inventions and more than 80% of new product development.
Third, developing MSEs can stimulate consumption and stabilize the economy. Those working in MSEs are basically in the middle and low income groups among Chinese residents.
More information can be found in the report “Solving the Financing Problems for Micro and Small Enterprises in China” by China's Economy & Policy-Gateway International Group.
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