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Entrepreneurship Research Center on G20 Economies VOL.15 March 2020
China’s Policies to Support SMEs in Resuming Work and Production
As the domestic situation is getting better with the notable Governments at various levels have taken multiple measures
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results in the COVID-19 prevention and control, Chinese to help SMEs resume the work and production in an
governments at various level promote the enterprises to orderly manner, through synchronizing efforts of multiple
resume work and production while continuing their effort in departments, ensuring businesses in the industrial chains to
prevention and control. Small and medium-sized enterprises restart in a coordinated step, and innovating the targeted and
(SMEs) are the primary source of jobs and a crucial link in the effective services for SMEs. Great importance has also been
industrial chains, so supporting SMEs to resume work and attached to promoting the internal drive of SMEs to digital
production is an essential step to boost economic growth, transformation, which is considered as an expressway to
stabilize employment, and get the social lives back to normal. restore vitality. According to statistics, the work resumption
ratio of the SMEs nationwide was about 29.6% on February
Compared with larger enterprises that are more capable of
23rd, and 76.8% by March 29th, which indicates a steady
coping with various challenges, SMEs are more vulnerable
increase.
to changes in the external environment. As a result, most
SMEs were confronted with more outbreak-related hardships, The targeted policy measures were collected from central
including shortage of workforce, problems in the financial and provincial governments on the following aspects: solve
and industrial chains, difficult access to the information, and the shortage of workforce, ease the financial burden, provide
lack of protective materials and prevention measures. And in the “grassroot-level” and “one-stop” services, encourage the
addition, to balance resumption of production with epidemic digital transformation and guarantee the safety of resuming
control efforts is a big challenge to most SMEs. work and production.
