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Currently, SMEs in china are responsible for more than 75% of employment opportunities in urban centers and nearly 60% of the GDP (Zhao, 2007). For a period, majority of scholars have agued that organizational theories and models designed for large organizations could be directly applied to SMEs (Boyd & Nicolo, 2005). But in recent times, industry players have clearly demonstrated that there is a big difference between the SMEs and large organizations as indicated by Paulson (2008). This is because SMEs are confronted with numerous obstacles as opposed to large organizations. These obstacles are listed by Antkiewicz & Whalley (2005) to include lack of funds and socialized services, less access to market and poor management among others. The main purpose of the present paper is to examine trade policies in china and their advantages and disadvantages to small and medium-sized enterprises. With examples, this paper will also explore whether there are foreign small or medium-sized enterprises in china. It will also examine the key issues that china needs to address to enhance the growth of SMEs. Laws and Policies Concerning the Promotion of SMEs SMEs are the backbone of the Chinese economy according to study findings by Antkiewicz & Whalley (2005); Dunaway & Li (2005) and Lardy (2002). In view of this revelation, China has put in place trade polices and regulations that help in promoting their growth and development. These policies are geared toward improving their operational environment and increasing employment in both urban and rural areas as indicated in a World Bank report (2008). They are also aimed at exerting their significant influence on national economic and social development (Wang, 2004). At the present, majority of provinces and regions in China have formulated their administrative rules and regulations for enhancing the development of SMEs as noted by Paulson (2008). Moreover, the corresponding authorities and departments of the national government have issued several documents covering market access, the fiscal financial mix, enhancement of government control and administration, technological innovation, development of global markets and creation of service systems for SMEs (The World Bank, 2008). The government of China has developed legislations, policies and regulations related to the growth of small and medium-sized enterprises. Th ...Show more
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Order#: 533309 Topic: The Management of Small and Medium Enterprises - Literature Review Introduction Small and medium-sized enterprises (SMEs) contribute significantly to the overall economy of china. Majority of SMEs in china are privately owned. China has created general and particular trade policies and regulations to enhance their growth and development…
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