China Economic Review: The support for small and medium-sized enterprises cannot be reduced

The development of small and medium-sized enterprises is related to the revitalization and recovery of the economy. Recently, the Ministry of Finance issued a notice to strengthen the implementation of financial and tax support policies, promote the high-quality development of small and medium-sized enterprises, and emphasize that "policy strength shall not be weakened for any reason" in terms of implementing detailed tax reduction and fee reduction policies, strengthening the coordination of fiscal and financial policies, and other aspects. The People's Bank of China has also made it clear in its monetary policy report that it will continue to provide inclusive and sustained financial support to small and micro enterprises and private enterprises. Frequent policy actions demonstrate the importance of strengthening support for small and medium-sized enterprises in the current challenging economic recovery situation.

Small and medium-sized enterprises have a large quantity and a wide range of areas, contributing greatly to the overall economic output. They have also created a large number of employment opportunities, effectively promoting employment and entrepreneurship. At the same time, small and medium-sized enterprises have the characteristics of being relatively fragile and vulnerable to external influences, and their ability to resist risks is relatively poor. China's macro policies such as finance, taxation, currency, and employment have always strongly supported the development of small and medium-sized enterprises, and the policy intensity has been repeatedly intensified. However, facing the heavy pressure of economic recovery and development, many small and medium-sized enterprises still face difficulties in operation, some even close down or close down, which in turn affects the operation of the economy, especially employment and consumption. Only by stabilizing small and medium-sized enterprises can we better enhance the endogenous driving force for economic recovery and development. The support for small and medium-sized enterprises cannot be reduced, and it is necessary to further implement and improve efficiency.

In terms of policy, we need to make good use of policy space and find the right direction for our efforts. The current difficulties faced by small and medium-sized enterprises are more complex and severe than before, and support must be further strengthened to explore and make good use of policy space and achieve the full potential. Recently, the Executive Meeting of the State Council made arrangements for the follow-up arrangements of the phased tax and fee preferential policies that will expire in the next two years. The policies will be extended with multiple projects, wide fields, long duration, and strong support, especially for small and medium-sized enterprises, effectively reducing the burden on business entities. The next step is to continuously improve and optimize policies, and effectively solve the difficulties faced by enterprises.

At the same time, policies cannot be fought alone, but should focus on using a combination of punches. Small and medium-sized enterprises face various difficulties, and macro policies should focus on prominent problems and weak links, strengthen coordination and cooperation, and respond accurately and effectively. In terms of fiscal policies, in addition to reducing taxes and fees, policies such as government procurement support for small and medium-sized enterprises, ensuring timely payment of accounts for small and medium-sized enterprises, and supporting stable and expanded employment for small and medium-sized enterprises should also be fully utilized. At the same time, it is necessary to strengthen the coordination of fiscal and financial policies, effectively guarantee the financing needs of small and medium-sized enterprises, and alleviate the problems of difficult and expensive financing. For example, by implementing interest subsidy policies for entrepreneurship guarantee loans and leveraging the role of government financing guarantee institutions, we can help small and medium-sized enterprises obtain loans more conveniently and at a lower cost.

In terms of implementation, we must be meticulous and pay attention to practical results. There are many supportive policies for small and medium-sized enterprises, but some business entities do not have a strong sense of achievement. The main reason for this is the inadequate implementation. This year's audit report from the National Audit Office shows that there are still cases of excessive tax and fee collection in some places. The assessment report on the development environment of small and medium-sized enterprises released by the China Center for the Promotion of Small and Medium sized Enterprise Development also pointed out that there are still some shortcomings in optimizing the development environment of small and medium-sized enterprises in some regions, mainly including insufficient efforts to promote and stimulate the vitality of small and medium-sized enterprises, still heavy cost burden on enterprises, and the need to further improve the level of government service capabilities.

We must not weaken the policy strength for any reason, which should be highly valued in implementing support policies for small and medium-sized enterprises. For example, in some places, the contradiction between fiscal revenue and expenditure is more prominent. It is necessary to prevent the implementation of tax reduction and fee reduction, "discounting", and excessive collection of taxes and fees. It is strictly prohibited to collect fees, fines, and assessments indiscriminately, to ensure timely and full implementation of tax reduction and fee reduction policies. In terms of financial support, it is necessary to prevent financial institutions from focusing solely on economic benefits and neglecting social benefits and responsibilities, guide financial institutions to optimize resource allocation and internal policy arrangements, and achieve the goals of daring to lend, willing to lend, able to lend, and able to lend.

Stable small and medium-sized enterprises lead to stable economy, stable employment, and stable expectations. The support of macro policies such as finance and currency for small and medium-sized enterprises is not just a wave of wind, but also requires timely and practical policy measures to address new situations and problems, solve the pain points and difficulties faced by enterprises, stimulate the vitality of small and medium-sized enterprises, create a good development environment, and promote the high-quality development of small and medium-sized enterprises.