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Contents

Foreword ………………………………………………………………………………………iii

Contents…………………………………………………………………………………………v
Tables …………………………………………………………………………………………viii

Figures …………………………………………………………………………………………xi

Summary………………………………………………………………………………………xiii

Part One Recent Development of SMEs

Chapter 1 Major Trends in the Development of SMEs………………………2

I General Business Performance of SMEs 2

II SMEs and the Regional Development 13

III Female-Owned SMEs 16

IV Business Performance for SMEs in Wholesale and Retail Trade 20

V Overview of SMEs’ Expenditure on R&D 25

Chapter 2 Financial and Funding Analysis of SMEs …………………………27

I SMEs: Consolidated Financial Analysis 27

II Analysis of SMEs’ Financial Ratios 32

III SME Funding and Financing 35

Chapter 3 SMEs: Human Resources……………………………………………………42

I Labor Utilization by SMEs 42

II Labor Conditions in SMEs 54

III Manpower Cultivation in SMEs 56

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Part Two Government SME Policies and Prospects

Chapter 4 Improving Financial and Funding Services and


Strengthening Investment in SMEs…………………………………62

I Improving Financial and Funding Services 62

II SME Financing and Credit Guarantees 65

III Strengthening Investment in the SMEs 69

Chapter 5 Enhancing R&D and Promoting Upgrade and


Transformation for SMEs…………………………………………………72

I Measures Related to Actual / Virtual Integration and Network Resource


Applications for SMEs 73

II Promote Operational Excellence and Innovation 74

III Guidance to SMEs on Energy Conservation, Green Opportunities, and Carbon


Emission 76

IV SMEs: R&D Enhancement and Technology Upgrade 78

Chapter 6 Strengthening Start-ups and Incubation & Acceleration


Mechanism…………………………………………………………………………81

I In-Depth Entrepreneurship Counseling and Incubation 81

II Incubation and Acceleration Programs 83

III Youth and Female Entrepreneurship Counseling 86

Chapter 7 Revitalizing Local Industries by Outreach Development


and Seizing Business Opportunities ………………………………89

I Promoting Development of Local Industrial Clusters 89

II Help Local Industries Build Marketing Capabilities and Regional Brands 92

III Measures Promoting Business Matching and Exchange for SMEs 93

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Chapter 8 Other Government Measures to Support SMEs ……………96

I Government Resources Allocated to SMEs and National Awards Won by


SMEs 96

II Regulatory Flexibility to Create a First-Class Legal Environment for SMEs 99

III Participating in International SME Meetings and Events 102

IV National SME Awards from Ministry of Economic Affairs 103

Appendix………………………………………………………………………………………………105

A Act for Development of Small and Medium Enterprises 106

B Standards for Identifying Small and Medium Enterprises 120

C SME Statistics by Industry 123

Index ………………………………………………………………………………………………………141

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Tables
Table 1-1-1 Number of Enterprises, Annual Sales, Number of Employed Persons and
Number of Paid Employees in Taiwan, 2015-2016 ................................................ 4

Table 1-1-2 Shares of SMEs in Taiwan by Sector, 2010-2016 .................................................. 5

Table 1-1-3 Number and Sales Performance of SMEs, 2010-2016............................................ 7

Table 1-1-4 Number and Sales Performance of Newly-Established Enterprises, 2016 ........... 10

Table 1-1-5 Number and Sales Performance of Newly-Established SMEs by Sector, 2016 ... 10

Table 1-1-6 Shares of SMEs by Particular Ages, 2011-2016 ................................................... 12

Table 1-1-7 Number and Share of Enterprises in Taiwan by Form of Organization, 2016 ...... 13

Table 1-2-1 Number and Total Sales of SMEs in Taiwan’s Six Special Municipalities by
Size of Enterprise, 2016........................................................................................ 14

Table 1-2-2 Number of Employed Persons in Taiwan’s Six Special Municipalities, 2016 ..... 16

Table 1-3-1 Number and Sales Performance of Enterprises by Sex of Business Owner, 2016 17

Table 1-3-2 Number of Different Form of Enterprises by Sex of Business Owner, 2016 ....... 19

Table 1-3-3 Shares of SMEs in Particular Ages by Sex of Business Owner, 2016 .................. 20

Table 1-4-1 Basic Operation Types in Wholesale, 2016 .......................................................... 21

Table 1-4-2 Operation Dilemmas Facing Wholesale, 2016 ..................................................... 21

Table 1-4-3 Basic Operation Types in Retail, 2016 ................................................................. 22

Table 1-4-4 Operation Dilemmas Facing Retail, 2016 ............................................................. 22

Table 1-4-5 Basic Operation Types in Food Service Activities, 2016 ..................................... 23

Table 1-4-6 Share of Provided Services in Food Service Activities, 2016 .............................. 23

Table 1-4-7 Future Expand Plan and Priority Locations in Food Service Activities, 2016...... 24

Table 1-4-8 Operation Development Plan in Food Service Activities, 2016 ........................... 25

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Table 1-4-9 Operation Dilemmas Facing Food Service Activities, 2016 ................................. 25

Table 1-5-1 R&D Expenditure by Sector, 2011-2015 .............................................................. 26

Table 2-1-1 Consolidated Balance Sheet for Taiwanese Enterprises, 2014-2015 .................... 28

Table 2-1-2 Consolidated Balance Sheet for Taiwanese SMEs by Industry, 2015 .................. 29

Table 2-1-3 Profit and Loss of Taiwanese Enterprises, 2014-2015.......................................... 31

Table 2-3-1 Corporate Liability Structure as of the End of 2015 ............................................. 39

Table 2-3-2 Top 10 Banks by Amount of Loans to SMEs in 2016 .......................................... 40

Table 2-3-3 Top 10 Private Banks by Amount of Loans to SMEs in 2016 .............................. 41

Table 3-1-1 Characteristics of Employers, 2015-2016 ............................................................. 48

Table 3-1-2 Characteristics of Self-Employed Persons, 2015-2016 ......................................... 49

Table 3-1-3 Characteristics of the Unemployed, 2015-2016 .................................................... 50

Table 3-1-4 Reasons for Leaving the Previous Jobs, 2015-2016 ............................................. 51

Table 3-1-5 Number of Foreign Workers Introduced by Enterprise Size, 2012-2016 ............. 52

Table 3-1-6 Full-Time and Part-Time Manpower Utilization by Industry and Enterprise
Size, 2015-2016 .................................................................................................... 53

Table 3-1-7 Choice of New Employer by Former SME Employees, 2009-2016 ..................... 54

Table 3-2-1 Working Hours per Week and Number of Employed Workers by Enterprise
Size and Industry, 2016 ........................................................................................ 55

Table 3-2-2 Number of Paid Employed Persons and Average Wage of Main Work by
Enterprise Size and Industry, 2016 ....................................................................... 56

Table 3-3-1 Provision of Assistance to Enhance Manpower Cultivation by Business


Enterprise, 2012-2016 .......................................................................................... 58

Table 3-3-2 Provision of Conducting Entrepreneurship Study by Ministry of


Labor, 2012-2016 ................................................................................................. 58

Table 3-3-3 Results of Entrepreneurship Consultation and Counseling by Ministry of


Labor, 2012-2016 ................................................................................................. 58

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Table 3-3-4 Anticipated Changes in the Number of Personnel Employed by Business


Enterprises during the Period from April 31, 2016 to June 31, 2017 ................... 59

Table 4-2-1 The Performance of the Credit Guarantee Fund in Credit Guarantee Provision,
2013-June 2017 .................................................................................................... 67

Table 6-2-1 Incubation Center Performance, 2012-2016 ......................................................... 84

Table 8-1-1 Ministry of Economic Affairs Resources and Funding Allocated to SMEs ......... 97

Table 8-1-2 Special Loans to SMEs Funded by the Government in 2016 ............................... 98

Table 8-2-1 Major Legal and Regulatory Flexibility Relating to SMEs in 2016-2017 ........... 99

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Figures
Figure 1-1-1 Number of SMEs Distribution by Industry, 2015-2016 ........................................ 6

Figure 1-1-2 Shares of Domestic and Export Sales in Total Sales by Enterprise Size, 2016 ..... 6

Figure 1-1-3 Comparison of SME Export Contributions by Country ........................................ 9

Figure 1-1-4 Distribution of Sales in SMEs by Industry, 2015-2016 ......................................... 9

Figure 1-1-5 Distribution of Number of Newly-Established SMEs by Industry, 2015-2016 ... 11

Figure 1-2-1 Distribution of SMEs by Region in 2016 ............................................................ 14

Figure 1-2-2 Distribution of SME Employment by Region, 2016 ........................................... 15

Figure 1-3-1 Shares of Domestic Sales and Export Sales by Sex of Business Owner, 2016 ... 18

Figure 1-3-2 Industry Distribution of SMEs by Sex of Business Owner, 2016 ....................... 18

Figure 2-2-1 Short-Term Liquidity of Taiwanese Enterprises, 2014-2015 .............................. 32

Figure 2-2-2 Long-Term Stability of Taiwanese Enterprises, 2014-2015 ................................ 33

Figure 2-2-3 Operating Capability of Taiwanese Enterprises, 2014-2015 ............................... 34

Figure 2-2-4 Profitability of Taiwanese Enterprises, 2014-2015 ............................................. 35

Figure 2-3-1 Direct and Indirect Financial Ratios, 2004-2016 ................................................. 36

Figure 2-3-2 Comparison of Enterprise Financing Channels, 2004-2016 ................................ 37

Figure 2-3-3 The Average Interest Rate on New Loans Extended by Taiwan’s Five Largest
Banks, 2004-2016 ................................................................................................ 38

Figure 2-3-4 Changes in Bank Loans to SMEs by Regular Banks, 2004-2016........................ 39

Figure 3-1-1 Number of Employed Persons in Taiwan, 2011-2016 ......................................... 43

Figure 3-1-2 Top Five Industry Shares of Employed Persons Working in SMEs, 2015-2016 43

Figure 3-1-3 Number of Paid Employees in Taiwan, 2011-2016............................................. 44

Figure 3-1-4 Top Five Industry Shares of Paid Employees Working in SMEs, 2015-2016 .... 44

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Figure 3-1-5 Age Structure of Employed Persons and Paid Employees Working in
SMEs, 2015-2016 ................................................................................................ 45

Figure 3-1-6 Male / Female Ratio of Employed Persons and Paid Employees Working
in SMEs, 2015-2016 ............................................................................................ 46

Figure 3-1-7 Educational Structure of Employed Persons and Paid Employees Working
in SMEs, 2015-2016 ............................................................................................ 46

Figure 4-0-1 Framework to Strengthen Financing for SMEs ................................................... 63

Figure 4-1-1 Financial and Funding Consultation Mechanism ................................................ 63

Figure 4-2-1 Establishment and Operation of the SME Credit Guarantee Fund ...................... 66

Figure 4-3-1 Framework for Equity Crowdfunding Program .................................................. 71

Figure 5-0-1 Counseling Strategies for Backbone Enterprises ................................................. 72

Figure 6-2-1 Emerging Industries Accelerator Program .......................................................... 85

Figure 6-3-1 Female Entrepreneurship Flying Goose Program — Implementation Measures 87


Figure 6-3-2 Micro-Startup Phoenix Plan — Implementation Measures ................................ 88

Figure 7-1-1 Framework and Strategies: Local Specialty Industry Development ................... 90

Figure 7-1-2 Timeline of the Development of Local Specialty Industries in Taiwan .............. 90

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