Small-and-medium-size enterprises (SMEs) are playing an important part in Guangdong economy, so it is crucial for economic development of the province, says Lin in his interview with Newsgd.com on Nov. 3rd.

Mr. Lin Pingfan is director of the Institute of Enterprise Management and Decision Science under the Guangdong Academy of Social Science (GASS).

Q: GASS will publish a series of blue paper on Guangdong's economic development, would you please introduce the content of the books for us?

A: Focusing on the studies of the middle-and long-term development of Guangdong, researchers of GASS aims to give academic suggestions for the government to make decisions. The publishing of the blue papers is part of the project.

The Blue Paper, which will be completed before this December, consists of six parts: "Guangdong's Pace of Modernization", "Guangdong's Economic", "the Society and Culture of Guangdong", " Regional Competitiveness of Guangdong", "Enterprise Competitiveness of Guangdong" and "Competitiveness of the Privately-owned Enterprise in Guangdong."

Q: Do you think that larger enterprises are taking more advantages in the competition?

A: Not necessarily, that's only part of the whole scene. Bigger enterprise may be stronger in resisting the risks, but I think that better profit should be the ultimate reason to expand an enterprise.

Q: Some say that for the SMEs, one of the ways to sharpen their competitiveness is to enhance themselves or to expand by establishing franchised management. How do you think about it?

A: To enhance and to expand are two totally different concepts. For example, larger market share and more sales don't necessarily mean higher profits. I think the SMEs should enhance its power first, on achieving that, try to expand whenever the market allows it.

Q: What role do you think the SMEs are to play in Guangdong's economy as a whole?

A: First of all, SMEs usually account for 96% to 97% of the total enterprises in number. Secondly, SMEs are the headspring of innovation for industrial development. So they are crucial for the economic development of Guangdong as a whole.

Editor: Wing