Identifying the Barriers Facing Chinese Small and Medium-Sized Enterprises and Evaluating the Effectiveness of Public Supports

Authors: Yongsheng Guo, Obedat Abdulazeez, Xiaoxian Zhu

Abstract:

This study aimed to identify the barriers to the development of small and medium-sized enterprises (SMEs) in China and build a theoretical framework to evaluate the supports provided by the authorities and institutions. A grounded theory approach was adopted to collect and analyse data. 32 interviews were conducted with SME managers and open, axial and selective coding were utilised to develop themes. Based on Entrepreneurial Ecosystem Theory, a grounded theory model was used to present findings. The findings showed that the main barriers in the business environment were financial chain, payment default, limited supply chain and selling channels, and difficulties in recruiting and retaining talent employees. This study found that financial, industry, trade and human resource support were provided. A theoretical framework was developed to evaluate the performance of the programmes from the managers’ perspective. The concepts of Value for Money and economy, efficiency, effectiveness and equity were used to evaluate the benefits and costs of the programmes. This study suggests that specialised programmes are needed to suit sector-specific requirements and inclusive packages are helpful to support SMEs' growth.

Keywords: Business barrier, China, public support, SME, small and medium-sized enterprises.

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