Developing the small business market for business development services in chengdu: Policy issues and priorities

SMEs (Small and medium sized enterprises) play an extremely important role in prospering the local economy and promoting the economic transition.. It can be argued that the effective use of external assistance of the sort provided through business development services (BDS) is particularly important in the case of small firms, since limited management skills and resources is one of the disadvantages associated with small size. The paper draws on data from two surveys undertaken in Chengdu between November 2005 and January 2006: a survey of small enterprises and a survey of business service providers. The aim is to assess the nature and extent of the current demand for and supply of BDS from small firms in Chengdu and to identify any demand and supply-side gaps in the market, which selective public policy intervention might contribute to addressing. The paper continues with a presentation of selective results from the survey of BDS providers, followed by selective results from the survey of small firms. The paper concludes by identifying the implications for future policy support for small firms in Chengdu.