In view of the instability of the development of small and medium-sized enterprises and the uncertainty of the source of funds, China has formulated a series of financial subsidy policies to support the development of small and medium-sized enterprises according to the growth characteristics of small and medium-sized enterprises and the national macroeconomic development policy objectives, which are mainly reflected in the financial support for scientific and technological innovative enterprises. For example, China has set up a technological innovation fund for small and medium-sized scientific and technological enterprises, which has intensified efforts to promote the independent innovation and development of small and medium-sized scientific and technological enterprises through preferential and subsidy measures such as discount loans and capital injection, thus accelerating the transformation of industrial achievements of small and medium-sized scientific and technological enterprises and creating greater economic value for social progress and development. It can be seen that financial subsidies have played a good guiding role in the development of small and medium-sized enterprises, and at the same time promoted the improvement of independent innovation ability of small and medium-sized enterprises to some extent;

2. Preferential tax policies

At present, in order to promote the development of small and medium-sized enterprises, China has given certain preferential treatment in all aspects of taxation. For example, in terms of income tax, corporate income tax is levied at a reduced rate of 20% for qualified small and medium-sized enterprises, and at a reduced rate of 15% for high-tech enterprises supported by the state. Adopting preferential tax policies in the development of small and medium-sized enterprises can not only effectively reduce the financing and tax burden risks that inefficient enterprises may face, but also help small and medium-sized enterprises reduce the pressure and difficulties of financing and investment, and provide strong support for the healthy and sustainable development of small and medium-sized enterprises;

3. Government financial support

The development of small and medium-sized enterprises can not be separated from adequate financial support. In recent years, our government has increased financial support for small and medium-sized enterprises. As mentioned earlier, small and medium-sized enterprises are small in scale, the value of fixed assets is relatively low, the stability of enterprise funds is poor, and the capital turnover is difficult to control. Therefore, the operating conditions of small and medium-sized enterprises are generally unstable, which makes banks and financial institutions unwilling to give more preferential treatment and support to small and medium-sized enterprises in terms of loans, which has become a major obstacle to the rapid development of small and medium-sized enterprises. In response to this problem, the China Municipal Government has also formulated a series of financial support policies, fully liberalized the loan scale restrictions, and strongly supported banking financial institutions to increase credit support for SMEs, which fundamentally alleviated the financing difficulties of SMEs; China's financial department has also allocated some funds from the special funds for the development of small and medium-sized enterprises to support the development of credit guarantee institutions for small and medium-sized enterprises, so as to support and improve the development of loan guarantee institutions for small and medium-sized enterprises; In addition, China has also stepped up the product innovation of financial institutions, innovated diversified financing methods for small and medium-sized enterprises, and built a policy financing platform, which plays a vital role in solving the financing problems of small and medium-sized enterprises.