11^th Issue

（No.108）

Shanghai Small Enterprises Development Coordination Office          

September 14^th, 2007

Conference on Promoting Small and Medium Enterprises Development Held in Shanghai

---- The Growth Project of local small and medium enterprises has entered into the implementation stage.

The healthy development of small and medium enterprises can well reflect the economic vitality of a certain region. Therefore, in accelerating the promotion of the “Four Initiatives” and the construction of the “Four Concentrations” of Shanghai, active involvement of the vast small and medium enterprises is indispensable. In 2006, there was a continuous growing trend in small and medium enterprises all over the city in their total number, employee absorption, capital scale, business income and other aspects. Small and medium enterprises have become one of the fresh troops in promoting the good and rapid economic development of our city, as well as the major foundation for producing numerous employment posts and setting up a harmonious society.

On the afternoon of 27^th August, Conference on Promoting Shanghai Small and Medium Enterprises Development was held by the municipal government. Vice mayor Hu Yanzhao was present at the conference and made a speech. At the conference, Wangjian, director of Shanghai Economic Commission, introduced the work deployment of Shanghai small and medium enterprises development. Shou Ziqi, deputy director of Shanghai Science and Technology Commission, and Fan Yongjin, deputy director of Shanghai Financial Service Office, respectively made speeches on science and technology innovation service and financing credit service for small and medium enterprises; government leaders from Pudong New Area and Yangpu District responsible for this specific field respectively introduced their experience in boosting the development of small and medium enterprises. In the meantime, to enhance cooperation and interaction between different departments and organizations, and to provide better public service for small and medium enterprises, the signing ceremony of three cooperative agreements was held at the conference. The agreements were: “The Cooperative Agreement on 114 Dialing Service System of Small and Medium Enterprises” signed by Shanghai Small Enterprises Development Coordination Office, represented by Fu Xinhua, deputy director of Shanghai Economic Commission, and Shanghai Telecom Co., Ltd, “The Cooperative Agreement on Promoting Technology Innovation of Small and Medium Enterprises”, “The Cooperative Agreement on Promoting Small and Medium Enterprise Development” signed by the “One Office and Two Centers” of the municipal government, represented by Chen Peilin, director of Shanghai Small Enterprises Development Coordination Office, respectively with Shanghai Public Platform Research and Development Management Center and Shanghai Intellectual Property Park. Also present at the conference were department leaders of the municipal government responsible for the specific field, department leaders of more than 20 related commissions, offices and bureaus of Shanghai, leaders of the “One Office and Two Centers” of the municipal government, leaders of all district and county governments responsible for the specific field, leaders of the economic commissions and related departments of all districts and counties, together with people in charge of liaison work and service agencies of small and medium enterprises, leaders of some related service agencies and guilds of Shanghai, leaders of some of the small and medium enterprise and media journalists.

This is the first conference organized by the clerical office of the municipal government dealing with the citywide small and medium enterprise, and it reflects that the municipal committee and the municipal government are giving high regard and great support to local small and medium enterprises. Thus the implementation of the Growth Project of Small and Medium Enterprises is provided with powerful organization back-up. In this session, we publish an abstract from the conference speech by Wangjian, director of Shanghai Economic Commission.

Promoting Small and Medium Enterprises Development with All Efforts,

Making New Contributions to Shanghai Economic and Social Development

---- Wangjian, director of Shanghai Economic Commission

By holding the Conference on Promoting Small and Medium Enterprises Development, the municipal committee and the municipal government have fully demonstrated their special attention to the development of small and medium enterprises. Secretary Xi Jinping pointed out in his report on the 9^th Party Representatives’ Congress of Shanghai that together with the development of state-owned enterprises, we should further speed up in the development of both small and medium enterprises and the non-public sectors of the economy. On the routine meeting of the municipal government on July 16, a work report was given on implementing “Several Suggestions to the Implementation of Small and Medium Enterprises Growth Project” by the State Development and Reform Commission and promoting small and medium enterprises development in Shanghai. Mayor Han Zheng stressed at the meeting that the acceleration of small and medium enterprises development is a key task in boosting good and rapid economic and social development of Shanghai, so that all districts and departments should make firm and effective efforts.

The main target of this conference is to further carry out the spirit of The Symposium on Nationwide Small and Medium Enterprises held by the State Council, to implement “Several Suggestions to the Implementation of Small and Medium Enterprises Growth Project” by the State Development and Reform Commission and to make a work deployment on the acceleration of small and medium enterprises development according to the requirements of the 9^th Party Representatives’ Congress of Shanghai and the routine meeting of the municipal government. Next I shall give an introduction to the fundamental situation of small and medium enterprises development and make a brief work deployment on the key tasks of this year.

1. Small and medium enterprises play an important role in the economic and social development of Shanghai.

In recent years, local small and medium enterprises have accelerated their developing pace. Now they have become a significant force in boosting the good and rapid economic development of Shanghai; they have become one of the most vital and vigorous components of the development of all industries; they have also become an important foundation for maintaining social stability and ensuring people’s needs. In one word, small and medium enterprises play an irreplaceably important role in the economic and social development of Shanghai. Their main features include:

1.1 Small and medium enterprises have been maintaining a two-way developing trend in number and size. In number, according to the report by Shanghai Statistic Bureau, in 2006 there were altogether 326,000 small and medium enterprises in Shanghai, 7,000 more than the previous year, taking up 99.4% (the figure of those registered with the Industrial and Commercial Bureau may even be larger) of the city’s total number of enterprises and 99.6% of the total number of tertiary industrial enterprises. In size, the paid-in capital of small and medium enterprises has exceeded 1.7 trillion RMB, taking up 68.1% of the total enterprise capitalization. Small and medium enterprises have also achieved 55.3% of the city’s gross revenue and around 50% of its taxation. In ownership pattern, small and medium enterprises develop side by side with the non-public sectors of the economy, acting as each other’s economic main part. Over 97% of the city’s private enterprises, foreign-invested enterprises and enterprises invested by businessmen from Hong Kong, Macau and Taiwan fall into small and medium enterprises. In industry distribution, small and medium enterprises mainly focus on the following 7 businesses: wholesale, manufacturing, retailing, commercial service, architecture, research and technology service and real estate, with the business takings of wholesale establishment and manufacturing both exceeding 1 trillion RMB.

1.2 Small and medium enterprises have achieved some results in their efforts to promote a “professional, proficient, special and fresh” trade development. In recent years, over 800 local medium enterprises have grown into large enterprises, and over 1,000 small enterprises into medium enterprises. Mushrooming at the same time are a group of competitive and prospective “Little Giant” enterprises that meet the “professional, proficient, special and fresh” development trend. In electronic information, biomedicine and some other industries of Shanghai, small and medium enterprises constitute the majority and play an important role.

1.3 Small and medium enterprises have functioned in technology innovation and brand strategy. In 2006, municipal and district governments set up a 60 million RMB discount limit to 71 qualified “Revitalizing Shanghai Through Science and Education” projects of small and medium enterprises, which exalted the enterprises’ enthusiasm in technique reform and structure adjustment. With the implementation of “Shanghai Scientific and Technological Little Giant Project”, a number of “Little Giant” enterprises in the field of science and technology have come forward. The autonomous brand construction of small and medium enterprises also proves to be effective. Thirteen commissions, offices and related departments established “Shanghai Small and Medium Enterprises Brand Construction Promoting Committee”, and held The First “Name-Brand Enterprises” and “Name-Brand Products” Publicity of Shanghai Small and Medium Enterprises, in which the first 50 “Name-Brand Enterprises” and the first 150 “Name-Brand Products” were recommended. The influence of small and medium enterprise brands is escalating.

1.4 Small and medium enterprises have made great contribution to employee absorption and livelihood guarantee. They have created numerous employment opportunities for the society. In 2006, small and medium enterprises all over the city absorbed 7.807 million employees, 287,000 more than the previous year, taking up 82.6% of the total population of the city’s enterprise employees. Small and medium enterprises have played an important role in raising employment rate, meeting people’s needs and maintaining social harmony.

2. The whole society is attaching greater importance to and building a good environment for the development of small and medium enterprises.

Following the requirements of the municipal committee and the municipal government, we have in recent years strengthened our collaboration and cooperation with related commissions and offices, tightened our reliance on districts and counties, made good use of various intermediary organizations and service agencies, innovated our work ideas and service models, optimized the development environment and thus promoted the rapid development of small and medium enterprises.

2.1  The perfection of the small and medium enterprises work mechanism.

We have preliminarily set up a work mechanism for small and medium enterprises with the cooperation between different departments and the city-district partnership. A network of small and enterprises has been shaped from the municipality to the districts and counties, then to the communities and towns and finally to the industrial parks and zones. Firstly, a joint conference system of small and medium enterprises is established, participated by the Economic Commission, the Development and Reform Commission, the Science and Technology Commission, the Commission of Economic Trade for Foreign Countries, the Information Commission, the Agriculture Commission, the Financial Service Office, the Finance Bureau, the Labor and Social Security Bureau, the Industrial and Commercial Bureau, the Quality Regulatory Bureau, the Intellectual Property Bureau, the Statistic Bureau and the Industrial and Commercial Association of the municipal government. Secondly, a work system joint with districts and counties is established. We have shaped the conference system of small and medium enterprises in districts and counties, carried out regular analyzing and deploying work on specific tasks, made clear the function and responsibility division of small and medium enterprises, and achieved remarkable effect through city-district interaction. Thirdly, intermediary organizations and service agencies are fully utilized. We have insisted on the joint conference system of all levels and all types of service agencies for small and medium enterprises in Shanghai, and have guided those intermediary organizations and service agencies into innovating their service products and enhancing their service quality.

2.2 The promotion of financing and credit guarantee issues for small and medium enterprises.

To settle the financing difficulties of small and medium enterprises, together with Shanghai Finance Bureau, Shanghai Headquarters of People’s Bank of China and Shanghai Monetary Regulatory Bureau, we have jointly constructed a credit guarantee system for small and medium enterprises and have carried out credit rating experiments in the guarantee agencies. Launching together with Shanghai Monetary Regulatory Bureau and Shanghai Financial Service Office and cooperating with 23 banks, we held “Shanghai Bank Circle Financial Service Fair for Small and Medium Enterprises”.

2.3 The acceleration of small and medium enterprises service platform construction.

In the end of 2006, the website “Shanghai Small and Medium Enterprises” was completed. The website offers nearly 20 information service columns covering business launching, financing, expert consultation, technology innovation an so on. It also provides a service navigation function and nearly 2,500 megabits of information. “Shanghai Small and Medium Enterprises” has become one of the major public information service platforms in Shanghai.

2.4 The strengthening of talent cultivation and talent exchanges of small and medium enterprises.

We back various educational training agencies in launching special training activities for human resource managers, professional managers, production safety education and so on, through which a number of urgently-needed talents have been cultivated for small and medium enterprises. We have also organized various activities including cooperation and exchanges between different small and medium enterprises home and abroad, meetings and discussions between local small and medium enterprises and visiting enterprises and agencies from overseas, as well as business and trade inspection trips to and from brother provinces and cities. For instance, we successfully held the “2006 International Seminar on Small and Medium Enterprises Development, Shanghai”.

3. With the emphatic implementation of the “Growth Project”, small and medium enterprises development is to be accelerated.

Next, following the general deployment of the municipal committee and the municipal government, we shall put into practice the spirit of the National Development and Reform Commission’s “Several Suggestions to the Implementation of Small and Medium Enterprises Growth Project”, and carry out “Shanghai Small and Medium Enterprises Growth Project into Tens of Millions” centering on 9 issues including policy and law, socialized service system, autonomous innovation, structure adjustment, enterprise reform, operation and management, financing, talents and opening up to the outside world. Our work will mainly focus on the following 5 aspects:

3.1  Making clear the specific goals of our Growth Project.

Following the requirements of the state and at the same time taking into consideration the development reality of Shanghai small and medium enterprises, the municipal government has focally supported 100 prospective small and medium enterprises, while group corporations and district and county governments respectively fostering with emphasis 1,000 and 10,000 prospective small and medium enterprises. Next we shall deepen and detail the working program of Shanghai Small and Medium Enterprises Growth Project, fix the list of the enterprises to be supported and fostered, capture the breakthrough of the Growth Project implementation and practically complete the organizing and implementing work.

3.2 Exploring a breakthrough to the bottleneck situation small and medium enterprises face in financing credit.

Firstly, a direct financing channel is to be brought forth. Shanghai Economic Commission, Shanghai Financial Service Office and Shanghai Securities Regulatory Bureau have jointly issued “Suggestions to the Fostering Project for the Reorganization and Stock Listing of Shanghai Small and Medium Enterprises” and implemented the “Fostering Project for the Reorganization and Stock Listing of Shanghai Small and Medium Enterprises”, in an effort to bring approximately 10 small and medium enterprises listed onto the stock market or ready to be issued. Secondly, indirect financing service is to be promoted. We shall further perfect the credit guarantee system of small and medium enterprises, carry out “Suggestions to Strengthening Small and Medium Enterprises Credit Guarantee System Construction” and complete “The Temporal Method of Deficiency Account Compensation for Small and Medium Enterprises Credit Guarantee Agencies”. We shall also launch credit rating experiments in credit guarantee agencies and carry out careful examining and recommending work to those agencies applying for the state’s special funding and preferential taxation for small and medium enterprises. Thirdly, innovation of financial products and services should be encouraged. We will support the banking business in innovating their hypothecation methods, develop credit products catering to small and medium enterprises and intensify the development and utilization of such financial products as pawn broking, leasing, interest financing and so on. We shall also practically promote bank-enterprise cooperation and carry out financing service tours deeply into districts, counties and various industrial parks. Fourthly, the construction of small and medium enterprises credit system should be boosted. We will promote the establishment of a complete credit risk precaution and control system in small and medium enterprises and will organize credit information autonomous application experiments in 2,000 to 3,000 enterprises.

3.3 Building up a public service platform for small and medium enterprises.

We must accelerate our construction of the 6 major public service platforms, including business affairs, autonomous innovation, credit guarantee and investment financing, information, management consultation and market expansion service, through which such multi-faceted and three-dimensional public service channels with Shanghai characteristics as “telephone systems, websites and magazines” will be opened up. Firstly, the key role of “Shanghai Small and Medium Enterprises” website should be realized. Around 100 non-profit or commercial intermediary agencies will be chosen to offer special online services. In accordance with the “Informationization Training Activity for Millions of Small and Medium Enterprises” started by the State Development and Reform Commission, we shall popularize the autonomous website constructing system for small and medium enterprises, the online ERP system as well as some other sorts of informationized software. Secondly, “114 Hotline Service for Shanghai Small and Medium Enterprises” will be opened. Collaborating with Shanghai Telecom, we shall open the “114” hotline service and progressively bring forth various consultation services covering government affairs, policy and law, technology innovation, financial services, management consultation, market expansion, human resources and other aspects. Thirdly, the serving role of traditional media should be realized. We shall further put into full play the magazine “Shanghai Small and Medium Enterprises”, strengthen our cooperation with mainstream news media and provide more access to media service for small and medium enterprises.

3.4 Promoting the construction of autonomous innovation and autonomous brands in small and medium enterprises.

By promoting the “Two Autonomous” construction, we shall constantly increase the development potential of small and medium enterprises. Firstly, a number of “Scientific and Technological Little Giants” are to be fostered. We have to make good use of the public technology platform, encourage reinforced technical reform in prospective small and medium enterprises and utilize as energy as possible. Also we will guide small and medium enterprises into structure upgrading, so as to raise the competitiveness and added value of their products. Secondly, a number of specialized small and medium enterprises are to be fostered. We shall stick to the “professional, proficient, special and fresh” development trend and foster a number of highly professional and self-contained small and medium enterprises in all industrial assemblies, in an effort to develop around 30 distinctive industrial assemblies with 10 to 20 small and medium enterprises in each of them. Thirdly, the brand construction of small and medium enterprises is to be boosted. Within this year we shall finish the promotion activities for 100 “Name-Brand Enterprises” and 100 “Name-Brand Products”. Besides, a “Small and Medium Enterprise Brands Display Street” will be set up. On Nanjing Dong Road Pedestrian Street, publicity will be given on colored flags and big screens, and last year’s “Name-Brand Enterprises” and  “Name-Brand Products” will be displayed.

3.5 Strengthening talent cultivation and regional cooperation in small and medium enterprises.

Firstly, the development and utilization of human resources should be increased. We encourage various training agencies to start courses for specialized talents on operation and management, specialized technology, skilled talents, etc. and focally foster a number of outstanding enterprisers as well as “Two High” talents for small and medium enterprises. Secondly, those small and medium enterprises in good conditions are encouraged to “go abroad”. We shall promote local small and medium enterprises’ economic and technological cooperation with the outside world and strengthen their capabilities in aspects including market exploiting, autonomous marketing network, intellectual property protection and trade conflict settlement. Other exchanges such as the “Small and Medium Enterprises Fair” will also be organized. Thirdly, the interaction between different small and medium enterprises within the Yangtze River Delta should be promoted. The whole region will join their efforts in the analyzing of enterprise technology innovation strategies, the fostering of urgently needed technical talents, the establishment of a number of specialized technology service enterprises and the organization of the “Forum on Yangtze River Delta Small and Medium Enterprises Cooperation and Development”. We encourage small and medium enterprises to play an active role in providing services for the Yangtze River Delta, for the Yangtze River Valley and for the country as a whole.

Everyone, small and medium enterprises are of great importance in the economic and social development of Shanghai. We should take this conference as an opportunity for the acceleration of the development of citywide small and medium enterprises. We should encourage the vast small and medium enterprises to participate actively in the accelerated process of “The Four Initiatives” promotion and “The Four Concentrations” construction and to make their contributions to the good and rapid economic development of Shanghai!

Editors of the present issue: Song Xiaohui, Zong Yuan