SME Development in Indonesia and China

SME Development in Indonesia and China

Tulus Tambunan & Liu Xiangfeng

Abstract Based on secondary data and existing literature, this paper discusses the current development of small and medium enterprises (SMEs) and their main constraints in some Asian developing countries with the focus on Indonesia and China. Based on data available, it shows that these enterprises are very important in those two countries especially with respect to employment generation and the formation of gross domestic product (GDP), but still relatively small in export. Another important fact shown in this paper is that although the enterprises are facing a number of difficulties, their main constraint is lack of finance. It also discusses some policy implications.

Key words: SMEs, Indonesia, China, constraints, performance,

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