DevelopingSMEsServicesOpportunitiesandChallengesin.pptVIP

Developing SMEs Services: Opportunities and Challenges in China Dr Jason Chen, Ascenda CPAs Session 5 IFAC SMP Forum October 28 2009 Beijing China Role of SMEs in China’s Economy SMPs in China SME Service Opportunities for SMPs Challenges for SMPs Outline Looking Ahead Role of SMEs in China’s Economy Approximately 9.7million SMEs (2008) 98 per cent of the total registered business entities Contributions by SMEs to national economy (2008) 60% of GDP Taxes: 50% Exports: 78% Innovations (e.g. patent): 66% Employment: 75% Data source: China Association of Small and Medium Enterprises Status of SMPs in China’s CPA Profession CPAs in China (in the year of 2008) Total fee revenue: 31 billion RMB Practicing CPAs: 83,252 Number of CPA firms: 7,143 Top 80 firms a firm with an annual fee revenue of 40 million RMB and plus Total fee revenue: 18.6 billion RMB 60 per cent of the total Revenue per firm: 233 million RMB Data source: CICPA Status of SMPs in China’s CPA Profession SMPs Defined: Firms with an annual fee revenue of less than 40 billion RMB (“Non-top 80”) Revenue of SMPs Total fee revenue: 12.4 billion RMB 40 per cent of the total Revenue per firm: 1.76 million RMB Fee Revenue in 2008 Service Opportunities from SMEs Features of SMEs in China Business goals and strategies “Making money whatever or wherever it is” Management and internal controls e.g. more than two sets of accounts Financing difficulties e.g. only 22% bank loans granted to SMEs e.g. of the total direct financing, only 3% to SMEs Human resources Lack of well-trained managers Service Opportunities from SMEs Service Demands by SMEs Bookkeeping and secretarial services Tax Advisory services Tax agent, i.e. preparing and filing returns Tax planning and advising Managerial consulting Internal control Performance evaluation and remuneration IT systems Financial and investment consultation Introducing PEs Advice on buying selling business Service Opportunities from SMEs Opportunities for SME S