Making markets in business development services for SMEs: Taking up the Chinese challenge of entrepreneurial networking and stakeholder relationship management

Abstract

Purpose

This study aims to examine the design of effective support systems for micro‐, small‐ and medium‐sized enterprise (MSME) development at the local and regional level in China.

Design/methodology/approach

The paper calls on the experience of China, in fostering the fastest growing MSME sector in the world over the past 20 years, to suggest a paradigm based upon the Chinese guanxi model of relationships.

Findings

The paper argues that the extensive international experience has not been massively successful and that the application of a stricter market‐led approach to the provision of MSME business development services will not be successful if it ignores the way that western “institutionalism” dictates the supply offer.

Practical implications

It is argued that the model of entrepreneurial networking and relationships demands a fundamental repositioning of policy support and a major reorganisation of the way that knowledge is made explicit and disseminated to MSMEs.

Originality/value

The paper explores what is termed as a stakeholder relationship model for the entrepreneur, the policy maker and the local delivery agent.

Citation

Gibb, A. (2006), "Making markets in business development services for SMEs: Taking up the Chinese challenge of entrepreneurial networking and stakeholder relationship management", Journal of Small Business and Enterprise Development, Vol. 13 No. 2, pp. 263-283. https://doi.org/10.1108/14626000610665962