As a significant component of ASEM member economies, small and medium sized enterprises (SMEs) are viewed as the core dynamic source of social and economic development. SMEs play an unique role in the value creation, expanding employment, promoting technological innovation and international trade. In recent years, small and medium sized enterprises account for over 90 percent of all businesses in ASEM member nations and supply 60 percent of GDP in terms of final products and services. In China, SMEs also play an important role in economic growth. For instance, till 2006, the number of SME counting for 99.3% of the total number of enterprises, making up 55.6% of China’s GDP, 46.2% of taxing, 62.3% of export amount and providing 75% of total employment opportunities. There is the huge potential and extensive future for SMEs.

ASEM have for a long time underlined the communication and cooperation of SMEs among all ASEM economies. In October 2007, the First ASEM SMEs Ministerial Meeting was held in Beijing. SMEs Ministers and their representatives from 45 ASEM members gathered under the theme“Drive the Future with Innovation, Promote Development through Cooperation”, and conducted extensive and in-depth discussions on issues of common interest regarding SMEs such as technological innovation, business development services, and cooperation and development, and achieved the“Beijing Declaration on Strengthening Cooperation among ASEM Members on Small and Medium Sized Enterprises (SME)”. In this sense, we recommended all the ASEM members to pay further and fully attention on the SMEs issues, aiming to foster a transparent and sustainable environment conducive to SMEs development under the framework of Asia-Pacific cooperation.

Due to their size and market power, however, SMEs may sometimes face particular challenges and experience obstacles at their critical growing stage, such as recruiting and developing high-level human resources; obtaining financing; marketing, researching and adopting the new technology, etc. We recognized that it is necessary to provide flexible and effective policy support to SMEs. In order to create a fair market environment and to release the vitality of SMEs, we recommended all the ASEM members to implement positive and effective measures to establish fair, transparent and perfect legal and policy environment for SMEs, aiming to establish infrastructure, foster sound financial environment, enhance capability building and technological innovation for SMEs. Meanwhile, ASEM members should strengthen communication and cooperation among member economies to foster a sound regional economic and political environment.

We further recommended:

Take Positive measures to improve the environment for SMEs and entrepreneurship

ASEM members should take positive measures to create the social culture, legal and policy environment for innovation. In particular, members need to encourage SMEs to strengthen R&D and international cooperation in energy and environment technologies, promote the use of new and renewable energies, facilitate SMEs access to energy-saving and environment-friendly technologies, so as to promote sustainable development. ASEM members are also encouraged to give more support to entrepreneurship as well as vocational training, and to simplify procedures for starting business.

Create a fair and transparent market environment to release the vitality of SMEs

Nowadays, SMEs may generally face obstacles such as financing difficulties, imperfect service system and lacking of legal protection, etc. Therefore, ASEM members should further emphasize the role and contribution to promote economic growth of SMEs, and take measures to improve their growing environment. We recommended ASEM members to make long-term strategies beneficial for the development of SMEs and implement effective measures to solve issues such as imperfect policy environment, difficult market access of starting business, financial inefficiency, imperfect societal service system, lacking ability of sustainable growth and restriction of resource utilization, and to create fair conditions for SMEs development.

Emphasize the infrastructure construction for SMEs

ASEM members should establish and improve the ICT social support, service and safeguard system for SMEs by exploiting and harmonizing all administrative and social resources, enhance targeted financial support for ICT reconstruction of SMEs, promote the introduction of patent technology for SMEs through reducing their tax burden and provide them with low-interest loans; and encourage the ICT R&D and utilization capability of SMEs.

Enhance the economic cooperation and market development capacity building for SMEs
ASEM members should establish a regular and sustainable mechanism for policy exchange and dialogue in the fields of SMEs management, human resource development and adoption of E-commerce, etc. ASEM member economies could also strengthen communication and cooperation through “Halll for ASEM SMEs Cooperation and Exchange” provided during the annual “China International Small and Medium Enterprises Fair” in each September in Guangzhou.

Strengthen the consciousness of corporate social responsibilities for sustainable economic growth and harmonious society

SMEs not only play the key role in promoting economic growth but also take important responsibility for social development. In this sense, we recommended ASEM member economies to show continuous concern for the social, economic and environmental development trend of the region, carry out knowledge propagation and training on CSR, and progressively merge the CSR into their management strategy, organizational structure and operation. ASEM members should also strengthen cooperation to create a warm social atmosphere for valuing CSR; and share successful experience and best practices among member economies, aiming to realizing the sustainable and stable economic development of the Asia-Europe region.