COMMERCE AND INDUSTRY
110
Small and Medium Enterprises (SMEs)
The Small and Medium Enterprises Committee (SMEC) was set up in 1996 to advise the Government on issues affecting the development of SMEs and to suggest measures to support and facilitate their development and growth. The Government further raised the status of the committee by making it directly accountable to the Chief Executive and widened its representation when appointing members for a new term of office in December. Members of the committee comprise leading industrialists and businessmen, SME practitioners, academics, professionals, representatives of financial institutions and SME service providers and government officials responsible for SME policies. As set out in the Chief Executive's Policy Address in October, the SMEC will recommend to the Chief Executive measures to support SMEs to start, build and expand their businesses.
The Government introduced in August 1998 a Special Finance Scheme for SMEs to help them cope with the liquidity problem arising from the Asian financial turmoil. Under the scheme, the Government assisted SMEs in securing finance from participating lending institutions by acting as their guarantor. As the scheme served to provide an interim relief and the economy had been improving since early 2000, the Government ceased to accept new applications under the scheme on April 8. The scheme has helped nearly 10 000 enterprises in obtaining loans amounting to $9.16 billion since its inception.
The Small and Medium Enterprises Office (SMEO) of the Trade and Industry Department co-ordinates the services provided to SMEs by government departments and subvented organisations such as the Hong Kong Trade Development Council, the Hong Kong Productivity Council and the Vocational Training Council. It publishes annually the Small and Medium Enterprises Development Support Plan. The support plan provides a comprehensive basis for better co-ordination of the public sectors' support and services to SMEs. The SMEO also operates a Small and Medium Enterprises Information Centre to provide one-stop information services on tariff rates, government licensing requirements and services provided by various government and support organisations.
In November, the SMEO launched a Pilot Mentorship Programme under which small business starters are given free advisory service by experienced entrepreneurs, business executives and professionals. The Pilot Programme is on trial for a year.
Innovation and Technology Commission
To promote the development of innovation and technology, an Innovation and Technology Commission (ITC) was set up within the Commerce and Industry Bureau on July 1, with the mission to spearhead Hong Kong's drive to become a world-class, knowledge-based economy. The commission formulates and implements policies and measures to promote innovation and technology; supports applied research, technology transfer and application; promotes technological entrepreneurship; facilitates the provision of technology infrastructure and development of human resources; and promotes internationally accepted standards and conformity assessment services to underpin technological development and international trade. The commission works closely with its partners in the Government, industry, business, tertiary education institutions and industrial support organisations.