Typical Facts about Small and  Micro Entrepreneurs in China

Micro-and-small enterprises (MSEs) constitute the capillaries of China's socio-economy,and play a pivotal role in fostering high-quality development of the Chinese economy.Despite their significance,a nuanced understanding of MSEs has been hindered by the absence of detailed micro-level data.Addressing this gap,Peking University's Center for Enterprise Research and the Institute of Social Science Survey,in collaboration with Ant Group Research Institute,has been conducting regular surveys on MSEs since the third quarter of 2020.These quarterly surveys comprehensively address various aspects,including the basic business situation of MSEs,challenges faced,policy benefits received,financing and digitalization.This paper presents a comprehensive introduction to the design,implementation and features of the Online Survey for Micro-and-Small Enterprises (OSOME) in China.It delves into the prevailing business landscape of China's micro-and-small merchants by leveraging data collected through OSOME.In addition,drawing on data accumulated over the past 13 consecutive quarters,this paper constructs the “China Micro and Small Business Confidence Index”.This index captures four essential dimensions:market demand,business revenue,operating costs,and the anticipated number of employees.By doing so,it offers a novel perspective on the expectations of micro and small merchants.

The study delineates five distinctive characteristics of China's micro and small operators.Firstly,there exist a substantial number of unregistered self-employed merchants in China,a segment frequently overlooked in prior business surveys and statistics.This group,however,is critical for a comprehensive understanding of China's market dynamics.Secondly,the primary existential challenges confronting micro and small merchants in recent years revolve around weakened market demand and escalating operating costs.Thirdly,in contrast to their medium and large enterprise counterparts,small and micro operators exhibit a heightened reliance on online financing channels,with online financing prevalence surpassing that of offline alternatives.Fourthly,the proportion of policy benefits,such as tax and fee reductions,enjoyed by micro and small operators is relatively modest.Lastly,micro and small businesses are intensifying their digital transformation efforts to navigate the evolving market and economic landscape.

The implementation of the OSOME survey holds significant importance in facilitating a nuanced comprehension and targeted support for micro and small operators in China.OSOME extends its reach to a substantial number of micro and small operators,particularly those operating on a small scale or without formal registration.This inclusive approach offers a direct channel for these operators to voice their concerns,thereby allowing for a more accurate understanding of their actual needs and business challenges.Moreover,the regular quarterly data gathered by the surveys serves as a valuable tool in capturing the dynamic evolution of the business landscape and information in other dimensions related to micro and small operators.This,in turn,provides crucial data support for both academic research and policy formulation.Lastly,the implementation of OSOME also paves the way for a novel avenue in social science research methodology,showcasing the key role and potential of big data technology in advancing research in social and economic domains.

This paper represents a pioneering effort in China,being among the first to systematically conduct a survey and undertake an in-depth analysis of the country's micro and small operators.It effectively addresses data gaps in the study of MSEs,offering robust support for related academic and policy research.