State promotion of SME development at the local level in China an examination of two cases
State promotion of SME development at the local level in China an examination of two cases
Purpose
– The purpose of this paper is to examine state promotion of private sector development in China, with particular emphasis on local configurations of support and service provision.
Design/methodology/approach
– Via analysis of two cases, constraints on the development of small‐ to medium‐sized enterprise (SME) support and enabling environments and infrastructures are explored.
Findings
– The cases highlight several fundamental constraints to state support for private sector development, including: an under‐developed market for business development and other support services; lack of budgetary facility in municipalities to resource publicly supported services to private SMEs; a lack of expertise within local government to develop mechanisms to engage with and support the development of privately owned enterprises.
Research limitations/implications
– The localised nature of implementation of the 2003 SME Promotion Law, at municipal and county level, appears to be a constraint on systematic development of comprehensive SME support systems, as mandated by this law.
Practical implications
– First, the private sector has grown without emergence of a purposive infrastructure of direct state support to enable this development, which appears to be a positive outcome from reform. Second, future private sector growth may be constrained should local government not develop mechanisms to engage with the private sector to enable its continued growth and development.
Originality/value
– The paper offers insight into current, and future, relations state promotion of enterprise in China.
225-241
Atherton, Andrew Michael
f9cd4f73-4bd9-4546-803d-0a382be1cd72
Smallbone, David
51e8bdc9-f9e3-4fdd-a32f-dc1895934e44
14 September 2010
Atherton, Andrew Michael
f9cd4f73-4bd9-4546-803d-0a382be1cd72
Smallbone, David
51e8bdc9-f9e3-4fdd-a32f-dc1895934e44
Atherton, Andrew Michael and Smallbone, David
(2010)
State promotion of SME development at the local level in China an examination of two cases.
Journal of Chinese Entrepreneurship, 2 (3), .
(doi:10.1108/17561391011078721).
Abstract
Purpose
– The purpose of this paper is to examine state promotion of private sector development in China, with particular emphasis on local configurations of support and service provision.
Design/methodology/approach
– Via analysis of two cases, constraints on the development of small‐ to medium‐sized enterprise (SME) support and enabling environments and infrastructures are explored.
Findings
– The cases highlight several fundamental constraints to state support for private sector development, including: an under‐developed market for business development and other support services; lack of budgetary facility in municipalities to resource publicly supported services to private SMEs; a lack of expertise within local government to develop mechanisms to engage with and support the development of privately owned enterprises.
Research limitations/implications
– The localised nature of implementation of the 2003 SME Promotion Law, at municipal and county level, appears to be a constraint on systematic development of comprehensive SME support systems, as mandated by this law.
Practical implications
– First, the private sector has grown without emergence of a purposive infrastructure of direct state support to enable this development, which appears to be a positive outcome from reform. Second, future private sector growth may be constrained should local government not develop mechanisms to engage with the private sector to enable its continued growth and development.
Originality/value
– The paper offers insight into current, and future, relations state promotion of enterprise in China.
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Published date: 14 September 2010
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Local EPrints ID: 499071
URI: http://eprints.soton.ac.uk/id/eprint/499071
PURE UUID: 252687ac-7140-4e91-82d0-54a33f1599e4
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Date deposited: 07 Mar 2025 17:43
Last modified: 08 Mar 2025 03:07
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Author:
Andrew Michael Atherton
Author:
David Smallbone
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