Small and Medium Enterprise Development in the People’s Republicof China

Abstract

The objectives of this article were to study the small and medium enterprise
development in the People’s Republic of China. The collection of data was collaborative
inquiry and multiple data sources from media and publications in order to have knowledge
and understanding the definition and role of SMEs in China, enterprise classification, size of
enterprise, problems and threats, promotion and encourage measures, SMEs protection to reduce
disadvantage form foreigner investors, importance of production sites, famous brand name of
China’s SMEs and SMEs development via electronic commerce. The results found that there
was continuous development of China’s SMEs, business and industry SMEs cluster’s which
difference from other countries and SMEs were driven mechanism of China’s economic
system. However there were some of SMEs problems such as practice rules and regulations,
the restrict of funding access, inefficient of management, the competitive disadvantage of
foreign market entry. Nowadays Chinese government develop the promotion plan for electronic
commerce in many regions for expanding distribution channels.