Assessing the environment for small and medium enterprises success in sichuan, China

The purpose of this paper is to provide a profile of the environment for development of Small and Medium Enterprises (hereinafter referred to as SMEs) in Sichuan, China. Focus group discussions and case analyses were used to diagnose problems that SMEs encountered in technology implementation and institutional innovation in Sichuan. Data from a layered sample survey was used to assess how the environment could influence the growth of SMEs and to examine what the SMEs need for their future development. The findings indicate that market success for the SMEs was mainly a function of market development/low labor cost/high efficiency/ and operational methods. Failure was generally caused by a lack of funds and/or market fraud. The results also suggest that the environment needs to be improved mainly on government efficiency and market disciplines. The research also gave policy suggestions that local government should conduct to help the SMEs to develop especially in operation and commercialization.