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State promotion of SME development at the local level in China : an examination of two cases

Atherton, Andrew 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). pp. 225-241. ISSN 1756-1396

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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.

Item Type: Journal Article
Journal or Publication Title: Journal of Chinese Entrepreneurship
Uncontrolled Keywords: Private sector organizations ; Entrepreneurialism ; Small‐ to medium‐sized enterprises ; China
Departments: VC's Office
Lancaster University Management School > Institute for Enterprise & Entrepeneurial Development (IEED)
ID Code: 76106
Deposited By: ep_importer_pure
Deposited On: 21 Oct 2015 06:05
Refereed?: Yes
Published?: Published
Last Modified: 11 Apr 2018 02:25
Identification Number:

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