Shenzhen is using every trick in the book to foster high-quality development of micro, small and medium-sized enterprises (MSMEs) that are regarded as important contributors to job creation and economic development.
Such determination is reflected in a slew of 20 measures that were recently released by eight government agencies, as the city renews effort to extend more support and provide greater relief to these key players in the economy.
The measures are primarily targeted at the difficulties facing many MSMEs in cost, financing and orders, as well as their short, medium and long-term development regarding digital transformation and upgrading, an official said yesterday at a press conference on policy interpretation.
It is expected that the new measures will help alleviate businesses’ cash flow pressure, deferring the payment of around 1.25 billion yuan (US$184.38 million) in utility bills, social insurance premiums and housing provident funds, and giving a tax break of about 16.35 billion yuan for MSMEs, said Yu Xiquan, director of the city’s industry and information technology bureau and the SME service bureau.
“Five of the 20 measures are aimed at addressing MSMEs’ financing difficulties, with the first and foremost step being to help enterprises reduce the costs of securing bank loans for the first time,” Yu said.
According to the measures, Shenzhen will grant loan interest subsidies to enterprises that first obtain loans from commercial banks within the city from January to March this year. An enterprise can receive up to 200,000 yuan in subsidies.
For eligible sci-tech SMEs, up to 80% of the interest paid by these companies in 2023 can be subsidized.
Meanwhile, the guarantee fee rate of government-controlled financing guarantee institutions for small and micro enterprises will be cut by 40% at most this year. It is estimated that the guarantee fees will be reduced by about 240 million yuan.
Yu said that Shenzhen will also work to nurture specialized and sophisticated enterprises that produce new and unique products and support MSMEs to develop into these kinds of enterprises.
According to Wu De, deputy director of the Shenzhen Tax Service, State Taxation Administration, this year’s tax and fee reduction policy focuses on supporting MSMEs.
Jian Zheng, deputy director of the city’s commerce bureau, said the bureau will help MSMEs expand markets and seize orders through consumption promotion activities, exhibitions, helping businesses expand global reach and e-commerce training sessions.
Shenzhen had had over 2.5 million SMEs by the end of 2022, according to statistics from the city’s SME service bureau.
Meanwhile, official data showed that Shenzhen currently has 3.94 million business entities, including 1.48 million self-employed individuals.