Financial Crisis Impact on SME Development and Coping Strategies

The he development of SMEs in China have been seriously affected shince the outbreak of global financial crisis,some enterprises have been plunged into financial constraints,market shrinkage,brain draining,costs soaring and other problems.The main reason in two ways,one is for the development of SMEs,the government lacks of a good development environment,perfect service,and sufficiently strong support;on the other hand is SMEs itself lacks of their capability of independent innovation,structural adjustment in place,adequate business confidence.So,faced with serious challenges the current financial crisis,both government and enterprises should be work closely together to cope with and take effective measures,for the Government,first,must effectively create a good legal policy and market environment for SMEs development,Second,must improve financial services and administrative services quality for SMEs,third,must increase the support of finance,credit and loan,susidizing of tax for SMEs;for the SMEs,they should have always confidence,first,must constantly improve the capability of independent innovation,strengthen its own brand-building,second,speed up structural adjustment,and promote industrial restructuring and upgrading.