A coordinated policy push has been launched by ten central government departments, including the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology, with the joint release of the 15th Five-Year Plan for Promoting the Development of Small and Medium-Sized Enterprises. The plan, unveiled on September 3rd, outlines seven priority areas of action, ranging from stabilizing business operations and securing employment to intensifying enterprise cultivation and strengthening the supply of production factors. A significant portion of the plan is dedicated to financial support, featuring measures designed to enhance the listing pipeline for SMEs, deepen the construction of specialized boards for "little giant" firms within regional equity markets, actively expand venture capital, and establish the second phase of the National SME Development Fund.
Industry experts commenting on the policy note a clear strategic evolution. While the 14th Five-Year Plan period focused on broad-based relief and comprehensive policy safety nets, the new plan is characterized by its direct engagement with the existing needs and practical challenges of SMEs, showcasing a distinct problem-solving approach. The plan sets forth an inspiring overall objective for SME development up to 2030, aiming for a qualitative and quantitative leap in the sector. It targets stable growth in total revenue and assets, with per-capita revenue for SMEs above a designated size projected to grow by roughly 15% cumulatively. Innovation capabilities are also targeted for significant enhancement, with R&D spending among industrial SMEs above a designated size expected to grow by over 8% annually. The plan also envisions reaching 22,000 specialized and innovative "little giant" enterprises and establishing 600 national-level SME industrial clusters. Furthermore, it seeks to optimize the development environment by establishing a long-term mechanism to prevent and resolve arrears owed to SMEs and by broadening their diversified financing channels.
A core mission of the plan is to strengthen enterprise cultivation and elevate the level of specialization, refinement, uniqueness, and novelty. This involves establishing a robust, tiered system for cultivating high-quality enterprises and creating a stronger mechanism for the growth of specialized and innovative SMEs. The approach includes refining the dynamic management of beneficial policies and certifications for high-quality enterprises, as well as defining clearer criteria for recognition and exit. The plan also emphasizes the continued cultivation of specialized and innovative SMEs and "little giant" enterprises, the organic integration of evaluation systems for tech-based and innovative SMEs, and enhanced monitoring and services for "gazelle" and "unicorn" companies. This proactive stance is designed to efficiently identify high-growth enterprises emerging in new and future industries.
The progress of recent years underscores the effectiveness of this focus. Data from the Ministry of Industry and Information Technology indicates that during the 14th Five-Year Plan period, the overall strength of China's SMEs improved significantly, with revenue and total assets for SMEs above a designated size growing at average annual rates of 5.7% and 6.6%, respectively. Innovation accelerated, with "little giant" firms dedicating an average of 7% of their revenue to R&D and investing over 30 million yuan each. This has translated into a wave of prominent, successful companies, exemplified by the emergence of Hangzhou's renowned "Six Little Dragons," which include innovative firms like Unitree Robotics and BrainCo. Zhang Xiaoyan, Vice President of the China Academy of Information and Communications Technology, highlights that to foster a comprehensive cultivation ecosystem in the new five-year period, the plan pairs its strategic goals with specific implementation actions. These actions include building a proactive discovery mechanism for high-quality SMEs and shifting the operational model from passive waiting for applications to active talent and project scouting, including by mining multi-source data on supply chains, equity financing, intellectual property, and scientific awards to build a pipeline of promising start-ups.
Addressing the persistent pain points of SME innovation is another central theme. The plan systematically deploys measures to fully unleash the internal innovation drive of enterprises, including a clear mechanism for commercializing scientific and technological achievements. It champions a "use first, pay later" model to close the loop from laboratory research to industrial application. A separate key task area focuses on strengthening the supply of production factors to build a solid development foundation. This entails increasing inclusive financial supply, stepping up support for direct financing, and enriching the variety of financial products and services. Concrete measures include leveraging the National Financing Guarantee Fund system and guiding government-backed guarantee bodies to bolster credit support for small and micro enterprises. The plan also calls for intensifying the cultivation of SME listings by establishing a dedicated talent pool for potential IPO candidates and fostering normalized equity financing connections. To invigorate the market for early-stage and hard-tech investments, it explicitly advocates for vigorously developing venture capital, establishing the second phase of the National SME Development Fund, and guiding social capital towards early-stage, small-scale, long-term, and hard-tech ventures. Ma Bin, Executive Vice President of the China Association of Small and Medium Enterprises, points out that high-quality SMEs are often characterized by heavy R&D investment, high technological uncertainty, and long return cycles. He views the plan's emphasis on venture capital and the new national fund as a precise identification of, and systematic response to, the shortcomings in factor allocation, which also includes opening up access to new factors like data and computing power for SMEs.
Ma Yuan, Deputy Director of the Enterprise Research Institute under the Development Research Center of the State Council, acknowledges that SMEs continue to face significant hurdles in accessing financing. He notes that the plan uses a comprehensive toolkit to address this, including subsidized interest rates and monetary credit policies to encourage financial institutions to increase credit support. The establishment of a listing cultivation database and increased support for IPO guidance are key to unlocking direct financing channels, alongside a push to build a diversified financing framework that integrates credit, equity, bonds, insurance, and guarantees. To ensure the plan's objectives are met, it also outlines seven major special projects or actions. These will focus on areas such as the gradient cultivation of excellent enterprises, enhancing quality and brand standards, facilitating digital and intelligent transformation, boosting industrial cluster capabilities, promoting financing, improving talent services, and strengthening public service capabilities, thereby providing a solid operational foundation for the plan's successful implementation.