Henan Sme Employment Absorption Studies

Employment has a vital bearing on the people's livelihood. In the current circumstances of a tough job market, Henan province was worst affected by the problem with a large population. SME (small and medium-sized enterprises) have been playing an ever more significant role in solving the problem of employment.The analyses on ability of SME to absorb labor force have been made by some scholars, but their analyses are not deep enough and lack of quantitative analysis. At the same time, existing studies lack of related analyses about Henan province. Based on the figures from the second economic census and statistical yearbooks, the article makes special analysis on the ability of SME to provide employment opportunities. Comparing with big enterprises and different structures, the article tries to analyse the advantages and disadvantages of SEM for employment. Last, the article gives the expectation about the development and employment of SEM in Henan province.On study method, the article uses quantitative analysis and qualitative analysis. However, the quantitative analysis is the main method. On that basis, the article explains quantitative analysis.The major conclusions of the article are as follows:first,for the ability to absorb labor force, SEM is stronger than big enterprises. The labor force in SEM have more contribution to output than big enterprises, and the ability to substitute capital in SEM is stronger than big enterprises; Next, the SEM classified by registration types and industry categories have different ability to absorb labor force. Generally speaking, privately-owned enterprise and the manufacturing industry, building industry,service industry SME can provide more jobs than others; Last, the related characteristics of SEM make itself absorbed more labor force. At the same time, SEM have the problems about low employment quality, environment pollution, being short of talents, which combine with its strong points.The original points of the article are as follows: the article builds regression equations of SME and lager enterprises to get related coefficients in order to comparing the ability to absorb labor force and getting concrete data. The drawbacks of the article are lacking of dynamic analysis, just having static analysis. That is to say the article needs to get the number of labor forces, when the SEM increase one unit of capital. At the same time, the conclusions drawn by quantitative analysis based on a certain hypotheses, and there would have disparities between conclusions and current state.