Regional Economic Analysis, The Development Of Smes

With the deepening of economic globalization and the rapid development of economy, the status of the Small and Medium Enterprises(SMEs) continuously improve, SMEs have become an important driving force of the regional economic development. As a special and the continuous developing business organization form, SMEs have made great contributions to the developed and the developing countries. Nowadays, SME is the key to develop economy, to promote the rational allocation of resources, and to narrow the income gap between urban and rural. Therefore, research on the SMEs has been one of the main topics of the economy.Nowadays, there are a lot of researches on SMEs, but the vast majority of research on the description of the importance of SMEs for the economy and the difficulties in financing. Ignoring the real reason for the plight of the development of SMEs. Especially the local governments in China do not integrated the development of SMEs into the framework of regional development. We cannot say that our countries do not pay attention to the SMEs, a lot of support and development policies for the SMEs have been promulgated, but the effect of the policies are not clear. The reason is that the local governments have not put the right awareness of SMEs, putting too much emphasis on large enterprises. Many local governments in China set up the SME clusters blindly without its own characteristics. In addition the policies towards SMEs in China are unequal, and now local governments' preferential policies in China are concentrated on the type of high and foreign SMEs. These wrong behaviors do not make the environment of SME development worse, but also affect the development of the region.The title of the paper is the regional economic analysis of the development of SMEs. At first we describe the theory of the small and medium-sized enterprises and regional economics, the next we make the detailed analysis of the mechanism of the SMEs in the process of regional economic development. The SMEs make a great contribution to the promotion of regional workers' employment, improving the regional economic structure and promoting scientific and technological progress. Especially in the process of regional economic development, employment and promote investment, SMEs often play the role what the large enterprises cannot play. The sustainable development of the regional also provide a favorable platform for cooperation and exchange, as well as a good policy environment and foundation construction for the SMEs.The function of SMEs in development of regional economy is so great, but the China's existing institutional environment for SMEs led to a lot of problems, such as difficulties in financing and the high cost. These problems do not only reduce the competitiveness of SMEs but also affect the regional economic environment. Therefore, it is very necessary and important practical significance to study the development of SMEs in regional economic perspective. Therefore we must on the basis of paying attention to the importance of SMEs, solving the difficulties of the SMEs, enhancing the Chinese SME competitiveness, establishing and improving the policy support system, accelerating the transformation of enterprises. Through the establishment of the competitiveness SMEs clusters, promote the development of the regional economic, create the virtuous cycle between the SMES and the development of regional economy.