Development of Chinese small and medium-sized enterprises

Purpose - This article aims to present an overview of the historical development and current status of Chinese small and medium-sized enterprises (SMEs) examine major political initiatives contributing to SMEs' development and draw out some experience from SME development practices in China. Design/methodology/approach - This paper is exploratory in nature, using archives of government documents and related statistics. Findings - The article argues that the fundamental role of the market in allocating resources and the self-operation status of SMEs should be respected, that it is imperative to encourage SMEs to optimise industrial structure, and that it is important to properly handle the government-enterprise relations and bring the role of the government in macro control into full play so as to create a fair competitive environment for SMEs. Practical implications - The Chinese experience of SME development is of great interest to policy-makers and academics alike. Originality/value - The article explores entrepreneurship and SME development in China from a policy-making perspective.