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Historical Development of Chinese SMEs

Historical Development of Chinese SMEs
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Author(s): Fenfang Lin (University of Southampton, UK), Alasdair Marshall (University of Southampton, UK) and Wendy Wu (Edinburgh Napier University, UK)
Copyright: 2020
Pages: 29
Source title: Entrepreneurial Innovation and Economic Development in Dubai and Comparisons to Its Sister Cities
Source Author(s)/Editor(s): Heather C. Webb (Dubai Men’s College, UAE) and Hussain A. Al Numairy (Dubai Men’s College, UAE)
DOI: 10.4018/978-1-5225-9377-5.ch005


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The importance of the SME is well established in the literature. These account for the majority of economic contribution in many economies. In the case of emerging markets, SMEs make significant contributions to the local income generation, employment support, and innovation development. The aim of this chapter is to provide an overview of how the world's largest emerging economy—China—helps promote its SMEs. This chapter provides a brief history of Chinese SMEs throughout the Great Economic Reform that started in 1978. Next, the SMEs' achievements and current constraints are outlined. Last, this chapter discusses how the SMEs in China upgrade through innovation and branding to embark on future pathways. Through this timeline approach, the experience of Chinese SMEs development will provide some insights for other emerging regions.

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