Development of Chinese small and medium‐sized enterprises

Abstract

Purpose This article aims to present an overview of the historical development and current status of Chinese small and medium‐sized enterprises (SMEs) examine major political initiatives contributing to SMEs' development and draw out some experience from SME development practices in China. Design/methodology/approach This paper is exploratory in nature, using archives of government documents and related statistics. Findings The article argues that the fundamental role of the market in allocating resources and the self‐operation status of SMEs should be respected, that it is imperative to encourage SMEs to optimise industrial structure, and that it is important to properly handle the government‐enterprise relations and bring the role of the government in macro control into full play so as to create a fair competitive environment for SMEs. Practical implications The Chinese experience of SME development is of great interest to policy‐makers and academics alike. Originality/value The article explores entrepreneurship and SME development in China from a policy‐making perspective.