At present, the global economy is facing a situation of weak growth and continuous trade disputes, and China's economy also needs to complete the multiple tasks of maintaining internal growth, adjusting structure and promoting transformation under the condition of increasing uncertainty in the external environment. It can be said that the world economy has come to a crossroads, and China's economic difficulties have undoubtedly reached a new stage. In this context, the importance of micro, small and medium-sized enterprises (referred to as small and micro) enterprises has been fully highlighted. The core of stable growth and employment lies in stabilizing small and micro enterprises. At the same time, the transformation of China's entire new kinetic energy is not only reflected in the upgrading of large enterprises, but also in the upgrading of small and micro enterprises accounting for more than 60% of China's economic GDP, and in the renewal of its technology, management mode and entrepreneurial spirit. Although small and micro enterprises are called "micro" and "small", they occupy an important position in the composition of the national economy in terms of their role. Since the 18th National Congress of the Communist Party of China, General Secretary Xi Jinping, Premier Li Keqiang and other party and state leaders have repeatedly issued important instructions on the development of small and micro enterprises, small and micro enterprise innovation and small and micro enterprise burden reduction, laying a solid foundation for the development and prosperity of small and micro enterprises. From China's practice, small and micro enterprises contribute 80% of the country's employment, about 70% of patent invention rights, more than 60% of GDP and more than 50% of taxes. As an important part of the real economy, small and micro enterprises play an irreplaceable role in increasing employment, promoting economic growth, scientific and technological innovation and social harmony and stability, and are the most active cells in the market economy. In a sense, the quality of China's economic development, the quality of employment, and the happiness of the people all depend on the "face" of small and micro enterprises. Last year, General Secretary Xi Jinping participated in the private enterprise symposium, pointed out the key problems and solutions of small and medium-sized enterprises, and the state's support for small and micro enterprises has risen to a new level. At present, the number of small and micro enterprises is still increasing, the output value is still expanding, and the overall development of small and micro enterprises continues to flourish. However, at the same time, it should be noted that small and micro enterprises have always faced many risks and challenges in micro-operation. The survey shows that with the changes in the domestic and international environment, small and micro enterprises have encountered obstacles in the market, financing and transformation, and there are problems such as insufficient market demand, difficult product sales, high market competition pressure, and difficult and expensive financing for enterprises. In recent years, small and micro enterprises have encountered profits and living space squeezes brought about by rapid rise in labor costs, raw material costs, environmental costs, and tax costs. These problems encountered by small and micro enterprises are expected to persist for quite some time to come. The Party Central Committee and the State Council attach great importance to these problems faced by the development of small and micro enterprises, and have successively introduced a variety of measures to actively create convenience and escort for the development of small and micro enterprises. In view of the widespread financing difficulties and expensive financing problems of small and micro enterprises, General Secretary Xi Jinping has repeatedly stressed that "it is necessary to improve financial services, dredge the channels for finance to enter the real economy, especially small and medium-sized enterprises and small and micro enterprises", and "build an inclusive financial system and strengthen financial services for small and micro enterprises". Premier Li Keqiang also proposed on many occasions that "small and micro activities, prosperous employment and prosperous economy", called for increasing financial services for small and micro enterprises, and implemented inclusive tax reduction policies for small and micro enterprises. It can be seen that supporting the development of small and micro enterprises and supporting the innovation of small and micro enterprises has become an important strategic deployment of the party and the state. What these support policies are, and whether some new initiatives are needed at this time, requires us to have a general picture of the situation of small and micro enterprises in China as a whole. At present, the classification standards for small and micro enterprises are different in different countries, and different stages of development are also different. Comparing the standards for small and micro enterprises in China and the World Bank, we can see that the size of medium-sized, small and micro enterprises defined in China is nearly twice as high as the World Bank standard. This may raise some international comparison issues. For example, many institutions say that the scale of support for small and micro enterprises is very large, but its support may be mainly concentrated in the top part of small and micro enterprises. If the small and micro standards are moderately pressed down, this problem will come out. If measured by the World Bank's standards, China's support for small and micro enterprises may not be as great as reported. According to China's standards, small and micro enterprises have become the main force of the economy. By the end of 2018, there were more than 39 million small and medium-sized enterprises and more than 70 million microenterprises in the country, which actually include self-employed households and rural cooperatives. That is, the market entities in the country reached 110 million by 2018, and the number was huge. Small and micro enterprises account for 99.6% of all market entities, producing more than 60% of GDP and 80% of jobs. General Secretary Xi Jinping and Premier Li Keqiang have repeatedly emphasized that small and micro jobs, stable employment, and economic vitality are very important to support this data. At the same time, small and micro enterprises have completed more than half of the total number of invention patents and new product research and development. In other words, they play the most micro-fundamental role in the growth of new kinetic energy. The development of small and micro enterprises has achieved these achievements, and a very important reason is the policy support in recent years, especially the 2014 double innovation policy. Similar support can also be seen in a series of policies for private enterprises introduced last year, and the main policy foothold is on small and micro enterprises. For example, the year-on-year growth rate of China's market entities was only 1.7% in 2013, but reached 25.3% in 2014. By 2018, it also reached a rate of 18%. The development of small and micro enterprises has played a significant role in stabilizing economic growth. In 2014, real GDP growth increased by 1.2 percentage points compared to 2013. Since the international financial crisis, the GDP growth rate has declined from 11.3% to the current 6.4%, but the survey unemployment rate is stable at about 5%, and the annual level of new urban employment is stable at about 13 million. The reason behind this is that the growth of nearly 18,000 new businesses every day supports the entire job market. In the past two years, China's economy has withstood the triple pressure of the world economic slowdown, the Sino-US trade conflict and internal difficulties, but China's economy has not collapsed as many people imagined, but has remained healthy and dynamic. Its tenacity and elasticity are mainly reflected not only in the new momentum and new economy, but also in the rapid development of small and micro enterprises. Although small and micro enterprises have grown rapidly in recent years, they have played a supporting role in employment, new momentum and growth, showing the good results of a series of policies with decentralization, management and service and entrepreneurship and entrepreneurship strategies as the main body. However, there are still many problems in its development. The first problem is that there are too many small and micro enterprises. From 2012 to 2018, the compound growth rate is 12.5%, and the absolute number exceeds 100 million. According to the statistics released by the World Bank, small and micro enterprises in various countries accounted for 91.43% of the total number of enterprises, and the average number of small and micro enterprises per 1,000 people was 35.75. At present, the number of small and micro enterprises per 1,000 people in China is 76.9, almost double the international level. The density of small and micro enterprises in China has also exceeded 99%, exceeding the world average of 8%. One reason for the excessive number of small and micro enterprises in China may be statistical problems. Although it is claimed to be 100 million small and micro enterprises, it is estimated that a considerable number of them are in the state of zombie enterprises. Another reason is that in the process of releasing a lot of tube uniforms, tournaments are being played everywhere, and everywhere is being released. For many enterprises, some basic standards, some technical standards, environmental standards, etc. have been liberalized in some areas. This leads to the lack of a real signal display mechanism for the establishment of enterprises, which also leads to the problem of excessive numbers. Small and micro enterprises are highly competitive, and most of them are in a state of complete competition or super-saturated competition. According to some survey data, 30.85% of small and micro enterprises are within 50 meters of competitors, and 72.43% of small and micro enterprises are within 1,000 meters of competitors. Low threshold and high competition have led to the average life expectancy of small enterprises in China being 3 years, while that in the United States it is 8 years and in Japan it is 12 years. The second problem is the poor quality of development. This is reflected in several aspects: First, the profitability is not high, and the ability to cope with the rise in factor costs and bargaining power is weak. Unlike large capital-intensive enterprises, small and micro enterprises are under greater pressure when labor costs, raw material costs, environmental costs, and tax costs rise. Some large enterprises purchase arrears on credit, and the objects of arrears are mostly small and micro enterprises, which reflects the weak bargaining power of small and micro enterprises. In recent years, the price of some raw materials such as energy prices has been decreasing, but because most of the upstream enterprises are large enterprises with strong bargaining power, the dividends of falling raw material prices have not been passed on to small and micro enterprises at all. According to the 2017 survey of Alibaba SME Business School, more than one-third of companies believe that their corporate innovation ability is insufficient, and according to the 2015 data of the China Household Finance Survey, 90% of small and micro enterprises have no innovation activities. It is undeniable that at present, some high-tech parks and industrial parks across the country have given birth to some technology-based small and micro enterprises, favored by many VCs and PEs, received a large amount of financial support, and grew very fast, but most small and micro enterprises have weak innovation capabilities. Third, the added value of products is low. According to the distribution of the industrial chain, the proportion of small and micro enterprises in the field of high added value is small. Fourth, management is not standardized. According to the survey, many small and medium-sized enterprises that eventually run away have some common characteristics: the first is that the main business is not adhered to, and the entrepreneurial spirit is not prominent; The second is that the management and governance of enterprises are very disordered, and there is basically no risk control ability. Fifth, there are few medium-sized enterprises in China, and it is difficult for small and micro enterprises to develop and grow. The ratio of microenterprises to small enterprises in China is 1.95:1, while the ratio of small enterprises to medium-sized enterprises is 13.75:1, which means that 1 medium-sized enterprise is born out of 13 small enterprises. China's medium-sized enterprises account for a weak proportion of the entire number of enterprises in the world. A large number of small and micro enterprises did not stand out and grew into medium-sized enterprises. In development economics, this is called the "disappearing medium-sized enterprise phenomenon." The third problem is that it is difficult for small and medium-sized enterprises to obtain financing, and the problem of expensive financing still exists. In recent years, the proportion of loans by commercial banks to small and micro enterprises has declined, and many small and micro enterprises believe that financing problems still plague enterprises. The worldwide problem that financing for small and micro enterprises is difficult and expensive may only alleviate it, and it is difficult to completely solve it. The fourth issue is that policy implementation needs to be strengthened. At present, the state has targeted preferential policies and some inclusive preferential policies for small and micro enterprises, and has recently issued a new round of preferential policies, especially from April to May this year, tax exemptions and exemptions. However, the survey found that 63% of small and micro enterprises have not heard of any of the above tax incentives. Insufficient understanding of policies is related to the lack of policy publicity, and is also related to the basic business literacy of small and micro business owners. The fifth problem is the difficulty of collecting information for small and micro enterprises. Small and micro enterprises have a low understanding of the country's preferential tax policies, and other information collection on small and micro enterprises themselves is also difficult. At present, an academic institution has tried to conduct some follow-up investigations, but 40% of the enterprises have lost contact in a year. Another agency found that the mortality rate of small and micro enterprises is high, with 16.7% of small and micro enterprises dying every year. Interbank information is also difficult to share, requiring more data platform support. In short, since the 18th National Congress of the Communist Party of China, a series of national policy support has made China's small and micro enterprises flourish, and achieved the effect of stabilizing employment and promoting transformation. At the same time, there are still some problems, such as overcrowded competition of small and micro enterprises, low development quality, low added value, irregular management, short lifespan, difficulty in information collection, greater risk, and difficulty in financing. With the current downward pressure on the economy intensifying, it is important to stabilize small and micro enterprises in order to stabilize the economy. It is necessary to make small and micro enterprises have stable expectations and sufficient confidence in the current situation, and at the same time, it is necessary to further expand support on some existing policies to comprehensively promote the transformation of small and micro enterprises to high-quality development. For example, under the condition that the business environment is not good enough, the government still has to play its subjective role in promoting fair competition, solve unfair competition and excessive competition, and support small and micro enterprises. In addition, in addition to creating a level playing field and maintaining legal continuity, it is necessary to improve the supply-side structure. According to the author's research on some regions of the Yangtze River Delta and the Pearl River Delta, some of their new practices can be used for reference. First, it is particularly important to build corresponding support platforms for small and micro enterprises, including big data, financial platforms, innovation platforms, and assistance platforms. If the government wants to support small and micro enterprises point-to-point, this is basically impossible because there are more than 100 million small and micro enterprises, and the management cost is infinite. Therefore, platform and systematic support are very important. Second, industrial clustering to build an industrial ecology for small and medium-sized enterprises. That is to say, it is necessary to sort out the ecological chain of small and micro enterprises so that their proportion is relatively reasonable. Many places use industrial clusters to create regional growth poles. In such a cluster, some small and micro enterprises are connected with medium-sized enterprises and large enterprises, and an enterprise ecology has been well improved. In addition, although many small and micro enterprises in the high-tech and manufacturing industries have appeared in recent years, they are not enough, and the proportion has not been well improved. For small enterprises, special support for high-tech manufacturing should be strengthened. The most important thing is to increase the promotion and support for small and micro enterprises from the perspective of governance system, management system and entrepreneurship cultivation. When we think of small and micro enterprises, the first thing that comes to mind is technology and capital, and there is no improvement from its internal motivation and configuration ability. For the incubation and cultivation process of small enterprises, we must work this. We see that at present, many venture capital, for some small enterprises such hand-to-hand support, it is very important to establish its good equity structure, good management system and governance system. After such a process, modern small and micro enterprises can emerge and grow healthily. Third, the release of management and service should be further deepened. The current "release and management service" is mainly reflected in "release", and "service" and "tube" are insufficient. It cannot be so excessive that there is no threshold, and it is necessary to increase the threshold of technical standards, environmental standards, intellectual property rights, etc. The threshold we want to remove is an unnecessary threshold for administrative control, but some technical thresholds must also exist. At the same time, platform services are provided for the improvement of the capabilities required by these thresholds. There are many difficulties in conducting research on small and micro enterprises, but given its importance, the academic community still needs to try. This book was written with the efforts of a number of research experts and industry elites in related fields. This book is co-edited by Professor Liu Yuanchun and Mr. Shao Zhibao. Economic theory is inseparable from application, and Postal Savings Bank of China is a leader in supporting loans for small and micro enterprises. Therefore, Chinese Minmin University is proud to partner with PSBC to use their microdata and financial practices to jointly study the topic of small and micro enterprises. This book not only has the research of scholars from Chinese Minmin University, but also absorbs the research results of many researchers of PSBC, which is a combination of theory and practice. Given the lack of time, problems are inevitable, and readers are expected to point them out when reading. The research on small and micro enterprises will continue to deepen in the future and strive to do better. President of Chinese Minmin University