Research On Legal Incentive Mechanism For Development Of SME In The Background Of Adjustment Of Industrial Structure

The development of SMEs(small and medium-sized enterprises) is one of the mostimportant and traditional social economic problems in China. At present, the core issues weare facing in the progress of economic reforms are what kind of SMEs we need and how topromote them to develop fast and well. Central and local governments are paying highattention to the development of SMEs all along as well as making much remarkable reformand effort. However, due to the limitedness of Chinese economic and political systems, thedevelopment of SMEs are always frustrated and obstructed institutionally and policyadjustment doesn’t function obviously. Therefore, it is necessary to establish law promotionmechanism of the development of SMEs to stimulate to develop SMEs scientifically.Particularly, at present China is in the background of deepening the adjustment of industrialstructure and transforming economic development patterns, with China regulating a largenumber of industrial, financial and fiscal policies for the development of SMEs andlegalization adjustment, mechanism forms to expect that the problems of developing SMEscan be solved.First of all, this essay states industrial structure and the concept and the currentdeveloping situation of SMEs, then analyzes the relationship of industrial structure andpromoting the development of SMEs to reveal its premise and power in the opportunity of theadjustment of industrial structure. Moreover, this essay demonstrates that laws, especiallyeconomic laws which play an important role in promoting the development of SMEs based onthe law and the development theory as the theoretical basis.SMEs’ development problems in China which is a socialist market economic country arewith specific national conditions and background, so the legal experience of the westerncountries with free economy to develop SMEs is of no more significance to China. However,since new China was founded, The party and the central government has made many policiesand legal results for SMEs and other non-public sectors of the economy but lack of systematiclegislation. This essay points out the system and the content of the existing law texts whichpromote the development of SMEs by hackling the existing legal norm.There are many sorts of problems influencing the development of SMEs in thebackground of adjusting industrial structure, which arouses plenty of discussions by both theory circle and practice circle. This essay, however, mainly develops around four aspects--insufficient legal support at constitution level and delay of law adjustment, inadaptabilitybetween the development of SMEs and legal norm, the development of the enterpriserestriction by poor financing mechanism, tax reform’s failure in alleviating burden ofenterprise. And then, it proposes a solution at legal level, that is, it puts forward advises thatconstitution should be modified, and the development of the subjects of SMEs’ legal formshould be grasped, and the national capital support and financing diversification of SMEshould be improved, and finally I advises to increase preferential in the tax policy of SMEs, tointegrate the cooperation between preferential tax measures and other measures, and toencourage SMEs to expand production. Although the above problems which are emerging inthe course of the enterprises adapting to the adjustment of industrial structure are macro, thisessay legally analyzes them and points out the crucial reasons to make the solutionswell-targeted.