Probe Into Status-quo And Development For Small And Medium-sized Enterprises (SMEs) In Lu Zhou

At present, our SMEs, accounting for 99% of the total number of all enterprises, create terminal products and services valuing about 60 % of GDP, hand in 50% of total taxes, and provide about 80% of the urban jobs. As a group of the most powerful vitality and dynamism in China’s socialist market economy, SMEs featured in flexible operation mechanism and market-orientation have played an important role in product innovation, industrial restructuring, regional economic development and settling employment and labor transfer in rural areas.SMEs have become an indispensable force in the economic and social development.However we should notice that compared with large enterprises, SMEs are generally with limited scale and scarce capital innovation ability, weak stability, chaotic management and higher default risk. Under the background of increasing fierce competition in resources, environment and global market, the survival and development of SMEs become more Serious.Luzhou, located in the south of Sichuan province, holds an essential position in economic and social development. In recent years, municipal committee and government have proposed four development strategies. Especially, the proposal of four-industry project promotes rapid economy development as well as cultivates the development of a number of SMEs. By 2009, the number of SMEs amounts to 7919, output values 83.1 billion and tax totals about 3 billion. SMEs provide work opportunities for 290 thousand people and contribute much to the economic development of Luzhou. However, compared with the general development level of SMEs in other cities, SMEs in Luzhou have been seriously lagged behind in promoting local economic development. Generally speaking, the main problems of SMEs here are limited number, small scale, rash production mold, irrational structure, weak innovation and governmental guidance.The paper begins with the impact of SMEs on social and economic development of Luzhou so as to analyze the key problem, explore the cause and search for an appropriate way for SME’s development as well as pave the way for the development of Luzhou through studying the status- quo. The article tries to discuss the matter from the following three aspects. The first part focuses on the geographic and economic advantages of Luzhou in Sichuan and the effect of SMEs. The second part aims to find the cause of restriction on SME’s rapid development by studying state’s planning, relevant policies and its own problems. The third part tries to seek the method to promote SME’s rapid development and push forward with views and suggestions on state policy, municipal guidance.This paper aims to find the causes of restriction on SME, s rapid development by analyzing factors such as the features, problems of SMEs. Meanwhile, it also tries to seek a way for SME’s rapid development through giving full play to strategic planning of political, economic development and the power transfer of the industry. This essay is expected to provide reference for the government to formulate economic and social development strategy and to make wise economic decision. At the same time, it tries to push forward the specialization,differentiation and industrialization of SMEs.