The Ministry of Industry and Information Technology (MIIT) issued Interim Measures for Gradient Development of High-quality Small- and Medium-sized Enterprises (the Measures) on Jun. 1, 2022, detailing and explaining the rules governing the accreditation, evaluation, management and development of high-quality SMEs.
China has nurtured 4,762 “Little Giant” enterprises cumulatively, bringing along more than 48,000 SMEs characterized as specialized, refined, differential and innovative in different provinces. During the 14thFive-year Plan period, China will endeavor to nurture one million innovative SMEs, 100,000 specialized, refined, differential and innovative SMEs and 10,000 “Little Giant” enterprises.
Lin-gang has introduced a set of specific policies echoing the national business fostering policies. So, compared to the rules made by Lin-gang, what are the changes in the Measures recently released by the MIIT?
1. Roles of relevant administrations: Relevant authorities of Shanghai were responsible for planning, project initiation, evaluation and supervision related to the accreditation of “Little Giant” in Lin-gang. According to the latest Measures, the job will be taken over by the MIIT.
2. Evaluation criteria:Basic yardsticks by which to measure the candidates remain unchanged, that is, specialized, refined, differential, and innovative/novelty. Other factors examined are the market in which the candidates operate, and their competitiveness, profitability and scientific research capacity.
On that basis, the Measures have set out more detailed rules, with main changes summarized as follows:
1. Enterprises need to meet higher requirements for operational capability and R&D capability. For example, the bar is set higher in terms of operating revenue of last year, new equity financing, percentage of R&D expenditure and length of work experience.
2. A scoring scale is applied to make the criteria quantifiable, more transparent and consistent. The full mark is 100 points, and 13 metrics in four major categories are examined to arrive at the final score. Getting a score of 60 points or more or meeting special conditions can be considered qualified.
3. The Measures apply to wide-ranging industries, while Lin-gang focuses on “4+2+2” frontier industries.
4. Regarding the “Differential” metric, the Measures leave it to the local authorities taking into consideration local conditions, while Lin-gang defines it as “an enterprise has its own brand, and employs unique processes, techniques, formula or special raw materials to develop, produce or provide differentiated products.”
In addition, the Measures contain more elaborate criteria for “Little Giant”, with metrics in six aspects.
