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A
Report on Support Measures for Small and Medium Enterprises
The
Main Report
Chapter
1
Introduction
| 1.1 |
In his Policy
Address in October 2000, the Chief Executive reaffirmed the importance
of small and medium enterprises (SMEs) as an important pillar of Hong
Kong's economy, and the Government's commitment to helping SMEs tackle
problems encountered at different stages of their development. The
Small and Medium Enterprises Committee (the Committee) was tasked
with the responsibility to explore new measures to support SMEs under
the themes of "helping to start a new business", "helping
to build a new business" and "helping to expand a business",
and to come up with practical recommendations. The committee members
are appointed for a term of two years, from 15 December 2000 to 14
December 2002. The terms of reference and the membership list of the
Committee are at Appendices 1
and 2 respectively. Recommendations
in this report are the results of extensive research, discussions
and consultations with the trade by the Committee in the past six
months. |
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| 1.2
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In addition,
in his 2001-02 Budget Speech delivered on 7 March 2001, the Financial
Secretary announced the setting aside of $300 million for the establishment
of a training fund to subsidise SMEs' training initiatives for their
employees. He invited the Committee to come up with suggestions on
the scope of training, the eligibility criteria and the amount of
subsidy to be provided by the fund. The Committee has completed this
task, and its recommendations are set out in this report. |
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| 1.3
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The Committee
has set up five working groups to study the problems encountered by
SMEs and to recommend feasible solutions in the following six areas:
business environment, financing, corporate governance and culture,
human resources, technology application and market expansion. Membership
lists of the five working groups are at Appendix
3. |
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| 1.4 |
During the course
of its work, the Committee held two major discussion sessions and
met over 60 representatives of trade and industrial organizations,
and professional bodies. These sessions enabled the Committee to exchange
views with different sectors on services relating to SME's development.
In addition, the Committee launched a public consultation exercise
in March this year to invite views from the community on the work
of the Committee. Representatives of the Committee also attended a
meeting of the Legislative Council (LegCo) Panel on Commerce and Industry
to exchange views with LegCo Members. Further, when considering and
drafting its recommendations, the Committee has made reference to
the views expressed by LegCo Members at a LegCo motion debate in mid-March
this year on measures to alleviate the difficulties of SMEs. The Committee
would like to thank all individuals and representatives of trade associations
and other organizations who offered their advice or took part in the
consultation process. Details of the public consultation activities
conducted by the Committee are at
Appendix 4; the list of organizations and individuals which offered
views to the Committee is at Appendix
5. |
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| 1.5 |
This report
analyses the current difficulties faced by SMEs and their causes;
recommends how SMEs should position themselves in the new economy;
and recommends support measures to help SMEs overcome obstacles and
realise their potentials. The recommendations aim to improve the business
environment for SMEs and strengthen their capability in financing,
corporate governance and culture, human resources, technology application,
and market expansion. |
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| 1.6
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While the Committee
recommends the Government and other relevant support organizations
to devote more resources to support the development of SMEs, it does
not encourage SMEs to over-rely on Government's assistance. This is
because in a free market, the Government's role should be one of a
facilitator, providing enterprises with a conducive environment and
the necessary infrastructure for them to conduct their businesses.
Our message to SMEs is that in a knowledge-based and increasingly
globalised economy, changes will occur with greater frequency and
higher impact than ever before. With changes come new challenges as
well as new opportunities. Standing still is no longer an option for
SMEs. They must be prepared to face the challenges, and to equip themselves
to take the initiative. The Committee believes that only SMEs which
are alert to the challenges ahead and which have a sense of crisis
will be able to ride out of the storm. Indeed, the central premise
on which the various recommendations in this report is founded is
that SMEs must constantly strive to upgrade themselves in order to
survive and succeed. |
Chapter
2 : The Committee's philosophy and consensus
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