SMEs has its special position in economic development

SMEs have emerged during the reform of 1980s by Deng Xiaoping and now SMEs developed well and contributed a lot in China economic growth.

Definition of SMEs can be referred to the number of employees, usually, an SMEs employs less than 100 employees, but those will less than 10 employs can be called self-employed, which is different from SMEs.

In the past, most SMEs are usually Town and Village Enterprises, which can support large state own enterprises to complete certain tasks and reduce burden and cost of large enterprises.

Recently, the private sector grew rapidly and much of the growth was in SMEs which is private.

Nowadays, China has cited that SMEs have made up 60% of its total export. SMEs contribution is growing in the economic development.

In 2000s, formal finance was not available to SMEs and low interest rates make large banks decline to lend to SMEs, especially when the banks had higher NPLs.

Chinese SMEs are pursuing foreign markets to develop but without assistance from the government or banks. SMEs development is stranded and some of the SMEs can not tackle the financial problems and higher cost problems and then shut down.

Now Guangdong local government and some banks have recognized the contribution of SMEs and offered privilege policies and measures to SMEs, such as cutting tax, giving small loans at low interest rate.

SMEs can find more business opportunities on B2B platforms which emerged in China in recent years.

IBUonline is a B2B foreign trade platform, which helps SMEs contact international buyers directly.

Please go to IBUonline homepage to know more details.