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SMEs
Selected AbstractsThe application of NN technique to automatic generation control for the power system with three areas including smes unitsEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 4 2003A. Demirören The study includes an application of layered neural network controller to study automatic generation control (AGC) problem of the power system, which contains superconducting magnetic energy storage (SMES) units. The effectiveness of SMES unit over frequency oscillations improvement against load perturbations in power system is well known. In addition, the proposed control scheme provides the steady state error of frequency and inadvertent interchange of tie-lines to be maintained in steady state values. The power system considered has three areas two of which including steam turbines while the other containing a hydro turbine, and all of them contain SMES units, in addition. In the power system each area with a steam turbine contains the non-linearity due to reheat effect of the steam turbine and all of the areas contain upper and lower constraints for generation rate. Only one neural network (NN) controller, which controls all the inputs of each area in the power system, is considered. In the NN controller, back propagation-through-time algorithm is used as neural network learning rule. The performance of the power system is simulated by using conventional integral controller and NN controller for the cases with or without SMES units in all areas, separately. By comparing the results for both cases, it can be seen that the performance of NN controller is better than conventional controllers. [source] Application of a self-tuning to automatic generation control in power system including smes unitsEUROPEAN TRANSACTIONS ON ELECTRICAL POWER, Issue 2 2002A. Demirören In this study, a self-tuning control scheme is proposed and applied to automatic generation control (AGC) in power system with superconducting magnetic energy storage (SMES). The system is assumed consisting of two areas. The proposed self-tuning control scheme is used to implement the automatic generation control adding to conventional control configuration. The performance of the system for load changes in the areas in the interconnected power system is studied. A comprehensive performance evaluation of the system is presented. The computer simulation of the interconnected power system with two areas shows that the proposed self-tuning control scheme is very effective in damp out of oscillations caused by load disturbances. [source] DIFFERENCES IN FINANCIAL PERFORMANCE AMONGST SPANISH SMES ACCORDING TO THEIR CAPITAL-OWNERSHIP STRUCTURE: A DESCRIPTIVE ANALYSISANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 1 2010Zuray Melgarejo ABSTRACT,:,The purpose of this paper is to assess whether financial performance differences between labour-managed (LOFs) and mercantile (PCFs) firms are due to differences in their capital-ownership configuration or to the particular measurement indexes commonly used to quantify performance. The empirical evidence rests upon a 1994,2003 data set of LOFs and PCFs that operate in the Industrial and Services sectors of the economy of Navarre, Spain. The results do not detect significant differences in financial performance between LOFs and PCFs, especially in the long-term and suggest the need to develop performance indices more akin to the special nature of the LOFs. [source] Labor productivity of small and large manufacturing firms: the case of TaiwanCONTEMPORARY ECONOMIC POLICY, Issue 3 2000M. Hsu This work studies the factors influencing the labor productivity of small and medium-sized enterprises (SMEs) and large firms using Taiwan as a case study. A special emphasis is placed on two possible international channels: exports and foreign direct investment (FDI). Different from conventional studies, we employ the two-stage switching regressions to correct the firm-size effect on labor productivity and estimate labor productivity for SMEs and large firms. The main findings are as follows. First, the estimates of the selectivity variable are statistically significant for both SMEs and large firms, supporting the hypothesis of correcting the effect of firm-size truncation. Second, while a larger trade intensity significantly increases the labor productivity of SMEs, it deteriorates significantly that of large firms. Third, FDI enhances the labor productivity of SMEs internally, whereas it has a negative spillover on that of other small and large firms in the industry. While the first outcome lends supports to the role of self-selection, the remaining stands in sharp contrast to conventional wisdom. [source] Sustainable entrepreneurship in SMEs: a case study analysisCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2010Cheryl Rodgers Abstract Sustainability is oft thought of as the privilege of the large corporate , with sufficient funds to invest in anything from effective green Public Relations (PR) to improving its carbon footprint. What is perhaps less well-understood and documented is the range of activities undertaken by small and medium enterprises (SMEs), including very small entrepreneurial start-ups, some of which base their entire business rationale on sustainable principles. This paper uses a case study approach to explore the modus operandi of ecopreneurship and draws on both primary research and secondary data to develop and explore sustainable entrepreneurship in this sector. Preliminary findings suggest that ecopreneurial SMEs are looking to other goals alongside financial ones and are prepared to go to significant lengths to achieve such goals. Monetary measures are not, of course, entirely absent, but are very strongly conditioned by the ecoconscious nature of the business. In short, sustainability imperatives remain paramount. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment. [source] An innovative model to promote CSR among SMEs operating in industrial clusters: evidence from an EU projectCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2010Massimo Battaglia Abstract This paper presents the findings of our EU co-funded project, an idea developed to better understand the opportunities to formalize corporate social responsibility (CSR) practices for small and medium enterprises (SMEs) in a clustered system. Small companies often have to compete in a global market; for this reason, cooperation among SMEs, and with local stakeholders and intermediary institutions, might be facilitated by a collective answer to new market requests. Cooperation and social capital are key elements to facilitate trust amongst involved local actors. Moreover, they can also play a key role in the formalization of CSR policies and practices for small companies. In our project, we aimed at identifying and understanding the role of the ,intermediary institutions' (such as trade unions, local authorities, business consortia) in the cluster. Throughout the paper, we focus on the analysis of three industrial clusters in Tuscany (Italy). Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment. [source] Strategic corporate environmental management within the South African automotive industry: motivations, benefits, hurdlesCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 6 2009Anderson Gwanyebit Kehbila Abstract This paper conveys the experiences of the South African automotive industry as it attempted to implement the ISO 14001 standard. Through a questionnaire-based survey, small and medium-sized enterprises (SMEs) as well as larger companies were asked about the key motivations for engaging in environmental change, the benefits accrued and the barriers that prevented them from doing so. This paper analyzes the variation in adoption rates in order to establish different relationships between them. The results reveal substantial differences and some similarities with regard to the hurdles, benefits and motivations behind the implementation of environmental management systems (EMSs) that are hidden behind corporate rhetoric and commitment to sustainability. This paper concludes by prescribing robust recommendations that would set off the pace for government officials to incorporate effective and realistic incentives into future policy to better encourage environmental compliance and improved performance while minimizing costs both to businesses and to the Government. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment. [source] Local authorities, climate change and small and medium enterprises: identifying effective policy instruments to reduce energy use and carbon emissionsCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2008Jaryn Bradford Abstract This paper discusses potential policy options available to local and municipal authorities, to achieve reductions in energy usage and greenhouse gas (GHG) emissions from small and medium-sized enterprises (SMEs). Researchers conducted surveys with 112 SMEs, and the results have been used to disaggregate the category of ,SME' into sub-sectors based on industrial sector, two measurements of employee size and annual turnover. A statistical analysis identifies key characteristics and behaviours of the sub-sectors of firms and discusses the type of policy measure these groups of SMEs would probably respond to. The key results of the research indicate that categories of firms differ in terms of energy use behaviours, internal constraints and attitudes toward possible policy options. The paper presents a ,policy matrix' to represent the most and least likely policy options to achieve energy savings from different categories of SMEs. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment. [source] The ,pros' and ,cons' of joint EMS and group certification: a Swedish case studyCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2007Thomas Zobel Abstract Small and medium-sized enterprises (SMEs) are collectively responsible for a significant portion of the total environmental burden worldwide. A common tool used by SMEs to improve their environmental performance is the environmental management system (EMS), which has the disadvantage that it has been developed with larger organizations in mind. A common approach used by Swedish SMEs to facilitate the implementation of an EMS is joint EMS and group certification. This paper evaluates this approach by means of a case study. It is found that the approach is effective for small and micro-sized companies in achieving ISO 14001 certification as fast and cost effectively as possible. A few short cuts including joint environmental policy and objectives and insufficient environmental organization are however threatening to undermine the trustworthiness of the approach. Notwithstanding these flaws, however, it must be concluded that the joint EMS approach is a good alternative for small and micro-sized companies. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] Networks as a means of supporting the adoption of organizational innovations in SMEs: the case of Environmental Management Systems (EMSs) based on ISO 14001CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2007Fawzi Halila Abstract In spite of their large numbers, most SMEs have little knowledge of or interest in environmental questions and generally have difficulties when it comes to integrating environmental aspects into their activities. One way for SMEs to shift from a reactive to a proactive environmental behavior is to adopt environmental innovations. Environmental innovations consist of new or modified processes, techniques, practices, systems and products to avoid or reduce environmental harms. In this study, I focus on a particular type of innovation: organizational environmental innovations, such as an EMS in accordance with ISO 14001. ,,One objective of this study was to understand and describe how SMEs can use a network as a basis for initiating environmental work. Another objective was to develop a model that can be used as a guideline for the adoption of an ISO 14001 EMS by SMEs collaborating in a network. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [source] How can SMEs effectively implement the CSR agenda?CORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 3 2004A UK case study perspective This paper focuses on implementation of the CSR agenda in small-to-medium enterprises (SMEs) and reports on research findings from an action research case study that has been conducted in a UK based SME. The case study research demonstrates how the CSR agenda has been implemented using ISO 9001:2000 as a platform and what benefits the case study organization has gained from this approach. These results are compared with a UK survey on feasibility of CSR for SMEs conducted by the UK's Department of Trade and Industry and parallels are drawn. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment. [source] EMAS and its local diffusion in ItalyCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 1 2003Rita Jirillo Due to the growing awareness among enterprises of the relevance of ,sustainable development', applications of the Environmental Management and Audit Scheme (EMAS) in Italy are expanding. With the second era of EMAS (EMAS II), this scheme will become a global instrument, enabling Italian small and medium enterprises (SMEs) to master environmental challenges while improving their competitive position. This report intends to demonstrate that area and local agreements between local government units and research centres, such as universities or energy and environmental boards, can simplify and improve the diffusion of EMAS in the country. Reported examples of some small Italian municipalities that have applied EMAS are demonstrations of how government units can increase all citizens' quality of life while taking care of environmental aspects. Since 1993, the year of the first applications of Regulation 1836/93, local government units have understood the important role they can play in this subject. This work illustrates that the development of ISO and EMAS local applications must be based on government's local promotion aimed at encouraging enterprises to voluntarily adopt these instruments for environmental safeguard. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment. [source] Sustainable Responsible Design: Insights from Wales (UK)DESIGN MANAGEMENT REVIEW, Issue 3 2005Frank O'Connor As Frank O'Connor and Iain Cox share two cases to illustrate what Design Wales is doing to promote responsible design among SMEs, it is evident that several elements are needed to implement what turns out to be a complex mandate. Governments must support the agenda with appropriate policy. Companies must make the commitment to value-based brands. Designers have to contribute relevant expertise, and consumers must to be willing to buy. [source] Government administrative burdens on SMEs in East Africa: reviewing issues and actionsECONOMIC AFFAIRS, Issue 2 2001Fiona Macculloch The important macroeconomic reforms achieved in East African economies (Kenya, Tanzania and Uganda) during the late 1980s and early 1990s have failed to deliver the magnitude of private sector growth and increased employment expected. Governments in the region have begun to recognize that lower-level policies and administrative procedures impose significant constraints on private sector development, stemming primarily from the command and control bureaucracies that characterised colonial governance. There are three priority areas for administrative reform: business licensing and registration, tax and customs procedures and specialised approvals. Also discussed are the problems of the special position of the informal sector, the impact of corruption and access to commercial justice. [source] Innovation and Peripherality: An Empirical Comparative Study of SMEs in Six European Union Member CountriesECONOMIC GEOGRAPHY, Issue 1 2008Andrew Copus Abstract This article examines the rates of innovative activity of small and medium-sized enterprises (SMEs) in central areas and equally developed but less accessible areas in six European Union member states. The probability of innovating is well predicted by the observable characteristics of firms, entrepreneurial characteristics, and business networks. More accessible areas consistently present higher rates of innovative activity than do their peripheral counterparts. The difference in the rates of peripheral and central areas is decomposed into observable and non-observable factors. The entire innovation gap is attributed to nonobservable factors that constitute a combination of behavior and environment. Innovation policy for SMEs should aim to meet businesses' specific needs (firm-specific factors) and to sustain and improve the innovative environment. [source] The Effects of Screening and Monitoring on Credit Rationing of SMEsECONOMIC NOTES, Issue 2 2008Mariarosaria Agostino In this paper, we seek to empirically assess which determinants of the capability and incentives of banks to screen and monitor firms are significant in explaining credit rationing to Italian SMEs. After testing for the presence of non-random selection bias and the potential endogeneity of some determinants of interest, the probit model results we obtain suggest that the average banking size and the multiple banking relationship phenomenon are statistically significant factors affecting credit rationing, presumably through their impact on the aforementioned banks' capability and incentives. Other potential determinants of banks' incentives to monitor and screen, such as local banking competition and firm' capacity to collateralize, are never significant. However, when we split the sample according to the level of competition in credit markets, we find that the estimated marginal effects of all significant determinants of interest are larger in absolute value than those obtained when using the whole sample. [source] The Macroeconomic Implications of Regulatory Capital Adequacy Requirements for Korean BanksECONOMIC NOTES, Issue 1 2000G. Choi The capital adequacy requirement, combined with the flight to quality, contributed to a drastic credit slowdown and a sharp recession in Korea in the aftermath of the financial crisis. Since most banks were placed under the strengthened capital adequacy constraints, they reduced loans to firms with high credit risks. As a result, bank-dependent small and medium-sized enterprises (SMEs) were badly hit, and eventually demand for bank loans fell. The reduction in loans was most visible among banks with poor capital adequacy, yet the overall change in bank portfolios had a disproportionately large negative influence on financial conditions for SMEs. In conclusion, the banks' response to capital adequacy requirements resulted in changes in the loan/bond ratio which, in turn, reduced loans to SMEs and caused a sharp cut in production. The resulting contraction in SME production created a polarized industrial structure and a chronic depression in the traditional sectors of the economy. The introduction of capital adequacy requirements (CARs) in the wake of financial crisis worsened conditions for SMEs and weakened the validity of the CARs that were mainly necessitated by successive failures among larger firms. [source] SME Entry Mode Choice and Performance: A Transaction Cost PerspectiveENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2004Keith D. Brouthers Although small and medium sized enterprises (SMEs) account for a significant portion of international trade, little is know about how they make international entry mode decisions. Transaction cost theory has been widely used to study entry mode selection for large firms. Here we apply the theory to SME mode choices. Further, we set out to determine if SME transaction cost mode choices provide superior performance to other mode choices. We found that transaction cost theory did a good job of explaining SME mode choice and that SMEs that used transaction cost,predicted mode choices performed significantly better than firms using other modes. [source] Professional Employer Organizations and Their Role in Small and Medium Enterprises: The Impact of HR OutsourcingENTREPRENEURSHIP THEORY AND PRACTICE, Issue 1 2003Brian S. Klaas While effective HR services and programs can help firms gain competitive advantage, small and medium enterprises (SMEs) often lack the internal resources required to develop and deliver these services and programs. As a result, SMEs increasingly are outsourcing HR activities to professional employer organizations (PEOs). Questions remain, however, about the conditions under which SMEs will benefit from outsourcing HR to a PEO, as well as about the type of benefits that are potentially available. The very nature of many HR activities raises questions about the risks associated with market governance and a PEO's ability to ensure service quality for SMEs. In order for these questions to be addressed, it is necessary to understand the process by which PEO utilization affects SME outcomes. In this article, we use transaction cost economics, social exchange theory, and the strategic HR literature to develop a framework for understanding the factors and conditions likely to affect whether and how an SME will benefit from using a PEO. [source] Entry Mode Choice of SMEs in Central and Eastern EuropeENTREPRENEURSHIP THEORY AND PRACTICE, Issue 1 2002George Nakos Scholars (e.g., Burgel & Murray, 2000; Jones, 1999; Zacharakis, 1997) have suggested that small and medium-sized enterprise (SME) international entry mode selection is an important new research area. In this study we attempt to determine if a model of large firm entry mode selection can be applied to SME entry mode choice. Using Dunning's eclectic framework, we examined SME entry into Central and Eastern Europe (CEE). We found that Dunning's eclectic framework did a good job of predicting SME entry mode selection in CEE markets. Managerial implications and suggestions for future research are discussed. [source] Overcoming barriers to implementing environmentally benign manufacturing practices: Strategic tools for SMEsENVIRONMENTAL QUALITY MANAGEMENT, Issue 3 2009Manuel Seidel First page of article [source] Environmental benchmarking for management of energy and water use: A study of SMEs in the Mediterranean regionENVIRONMENTAL QUALITY MANAGEMENT, Issue 3 2008Aikaterini Makrinou First page of article [source] Working capital management in SMEsACCOUNTING & FINANCE, Issue 3 2010Sonia Baños-Caballero G30; G31; G32 Abstract This paper analyses the determinants of Cash Conversion Cycle (CCC) for small- and medium-sized firms. It has been found that these firms have a target CCC length to which they attempt to converge, and that they try to adjust to their target quickly. The results also show that it is longer for older firms and companies with greater cash flows. In contrast, firms with more growth opportunities, and firms with higher leverage, investment in fixed assets and return on assets have a more aggressive working capital policy. [source] Knowledge Networks in an Uncompetitive Region: SME Innovation and GrowthGROWTH AND CHANGE, Issue 2 2009ROBERT HUGGINS ABSTRACT Knowledge networks are now recognised as a crucial element underlying the economic success and competitiveness of geographic locations, in particular regions. The aim of this paper is to assess the types of knowledge networks utilised and formed by knowledge-based small- and medium-sized enterprises (SMEs) in the relatively uncompetitive regional setting of Yorkshire and Humberside in the UK. It explores the relationship between knowledge networking activity and the levels of innovation and growth achieved by these SMEs. It is found that SMEs tend to utilise and value more knowledge networks with actors outside the region. However, more innovative SMEs possess a balance of inside and outside the region knowledge networks. Knowledge networking activity is sometimes negatively associated with growth, suggesting that networks with certain actors, such as public sector support agencies, may be formed by SMEs when they are facing competitive pressures. In terms of policy implications, the paper recommends a shift from the cluster policies implemented by many regional authorities to a regional innovation systems approach, focusing equally on the regional and more global dimensions of knowledge networks. It is concluded that regional public policy makers need to renew their efforts to support SMEs in creating and sustaining their knowledge networks. [source] Knowledge, Market Structure, and Economic Coordination: Dynamics of Industrial DistrictsGROWTH AND CHANGE, Issue 3 2002Ron A. Boschma The industrial rise of the Third Italy has been characterized by the growth of dynamic networks of flexible small and medium,sized enterprises (SMEs) that are spatially concentrated in specialized industrial districts. This network type of coordination has been associated with horizontal, trust,based relations rather than vertical relations of power and dependency between local organizations. This would lower transaction costs (essential for local systems with an extreme division of labor), facilitate the transmission and exchange of (tacit) knowledge (and thus, learning and innovation), encourage cooperation mechanisms (such as the establishment of research centers), and stimulate political,institutional performance (e.g. through regulation of potential social conflicts). From an evolutionary perspective, the focus is on the dynamics of industrial districts drawing from current experiences in Italy. In this respect, this paper concentrates on two main features of industrial districts that have largely contributed to their economic success in the past, that is, their network organization and the collective learning process. The evolution of industrial districts is described in terms of organizational adjustments to structural change. The way in which the size distribution of firms has changed is discussed (in particular the role of large companies), how the (power) relationships between local organizations have evolved, what are the current sources and mechanisms of learning, and to what extent institutional lock,in has set in. Finally, a number of trajectories districts may go through in the near future are presented. [source] Change processes and ergonomic improvements in small and medium enterprisesHUMAN FACTORS AND ERGONOMICS IN MANUFACTURING & SERVICE INDUSTRIES, Issue 2 2004Johan Karltun This article deals with the question of how change processes can create ergonomic improvements in small- and medium-sized industrial enterprises. Drawing on experiences from two described and analyzed case studies in small- and medium-sized enterprises (SMEs) and from ISO 9000 implementation processes previously studied, a hypothetical change framework is suggested through a theory generating approach. It separates change into action-driven change, which is an active experiential improvement process, and into vision-driven change, which is of a visionary design character. The ability to bring about problem solving into action was important for the success of the change processes. Furthermore, the nature of different hampering mechanisms concerning ergonomic improvements is discussed. © 2004 Wiley Periodicals, Inc. Hum Factors Man 14: 135,155, 2004. [source] Collective organisation in small- and medium-sized enterprises , an application of mobilisation theoryHUMAN RESOURCE MANAGEMENT JOURNAL, Issue 4 2006Sian Moore This article draws on mobilisation theory to explain the presence and absence of collective organisation in small- and medium-sized enterprises (SMEs). The analysis is based upon case studies of 11 UK SMEs reflecting variation in respect of employment size, industry sector, workforce composition, ownership and product/service market characteristics. It suggests that recently introduced statutory trade union recognition legislation and increased formalisation within some larger SMEs may provide the conditions for unionisation, although the presence and role of ,key activists' with union histories is critical to the process of gaining recognition and sustaining organisation. The nature of social relations in micro and small firms, however, inhibits the articulation of injustice. This is not least because the framing of grievances is a high-risk strategy with a potential to shatter the informal social relationships upon which work is based, and this inhibits the identification of collective interests. [source] Open source in Swedish companies: where are we?INFORMATION SYSTEMS JOURNAL, Issue 6 2010Björn Lundell Abstract Open Source (OS) is a phenomenon of increasing significance for organizations, offering the prospect of effective alternative business solutions and new business opportunities. A number of surveys have been conducted in various countries with the purpose of understanding the state of practice with respect to OS in companies. In this paper we report on a study of the perceptions of OS and the uptake of OS products and development models in Swedish companies. The study used purposeful sampling of companies that have an expressed interest in OS, and the survey was conducted using a set of pre-prepared questions. Its goal was to investigate the extent to which OS has influenced business thinking, as seen from the standpoint of stakeholders. We found that uptake is much higher than reported in earlier studies, but as with previous studies, activity is still concentrated in small and medium-sized enterprises (SMEs). There is increased evidence of interest beyond the simple use of OS components at the infrastructure level. Further, a significant proportion of the companies studied are supporting the OS community as well as benefiting from it. Support includes participation in existing projects and the release of new software under OS licenses. [source] Unpacking the effect of IT capability on the performance of export-focused SMEs: a report from ChinaINFORMATION SYSTEMS JOURNAL, Issue 4 2008Man Zhang Abstract., Export-focused small and medium-sized enterprises (SMEs) in China face a number of barriers to success, two primary ones being the liability of foreignness and resource scarcity. In order to transcend these challenges and be able to survive/prosper in the hypercompetitive international market, where players include large resourceful multinational organizations with experience in varied national contexts, these firms need to develop different organizational capabilities. In this paper, we specifically examine the role of a key organizational capability , information technology (IT) capability , and its different dimensions, in determining performance of export-focused SMEs in China. Our study reveals that IT capability has a positive impact on such firms' performance. This finding indicates the need for their owners/managers to invest in IT capability. Further, the study also highlights specific sub-dimensions of IT capability that export-focused Chinese SMEs should (or should not) develop, so as to derive maximum performance-related gains for the minimum amount spent on IT. [source] China's new Enterprise Bankruptcy Law,A great leap forward, but just how far?INTERNATIONAL INSOLVENCY REVIEW, Issue 2 2010Emily Lee The closure of many small and medium enterprises (SMEs) following the global financial crisis of 2008 spurred the Chinese government to follow its international counterparts in issuing an economic stimulus package. While it was effective in preventing many financially distressed SMEs from failure by boosting demand for its businesses, in the long run, such SMEs should be rescued through a statutory regime, which affords them temporary protection from creditors and provides them an opportunity to restructure their businesses. In doing so, the premature liquidation of SMEs would be prevented and SMEs with viable businesses but in temporary financial difficulties would be given a chance to succeed again. Although China's new Enterprise Bankruptcy Law (EBL) has shortcomings, it improves upon its predecessor legislation and, since it is still at an infantile stage of development, is bound for further reform. Despite the EBL's success in bringing Chinese corporate bankruptcy laws in line with international standards, full compliance with the UNCITRAL Model Law on Cross-Border Insolvency and UNCITRAL Legislative Guide on Insolvency Law remains to be seen. In September 2008, the South China Morning Post newspaper reported that the number of (applications for) corporate reorganization and bankruptcy cases had dropped, "leading to widespread speculation there are problems in the law's practical application".1 This article examines the implementation of the EBL, critiques key aspects of the EBL and argues for a comprehensive assessment of the EBL and for bringing the EBL in full compliance with the international standards on cross-border insolvency. Copyright © 2010 John Wiley & Sons, Ltd. [source] | |||||||||||||||||||||||||||||||