More than 5,000 delegates from home and abroad have flocked to the capital of South China's Guangdong Province to take part in the first fair for small-and medium-sized enterprises (SMEs).

The fair, jointly organized by the National Development and Reform Commission, the State Administration for Industry and Commerce and the Guangdong provincial government, is showcasing the great achievements of the country's SMEs.

With 1,860 stands and covering an area of 40,000 square metres, the five-day event displays products in eight fields.

"About 99 per cent of enterprises operating in China are SMEs, making a significant contribution to the national economy," said Xu Shangwu, secretary-general of the fair's organizing committee.

There are currently 3.6 million registered SMEs in China, plus over 27.9 million self-employed businesses, which account for 99.6 per cent of all enterprises in the nation.

SMEs contributed 55.6 per cent of China's GDP, 74.7 per cent of its industrial output, 62.3 per cent of exports, 65 per cent of patents and 75 per cent of technological innovations last year.

Delegates from all provinces and regions, apart from Tibet and Taiwan, are taking part in the fair.

"We have confidence in the fair," said Deng Huilin, an official from Central China's Hubei Province, who is leading a 150-member delegation to promote its fast growing SMEs in agricultural products processing and environmentally friendly facilities.

More than 1,200 visiting businessmen from more than 30 countries and regions, including the United States, Canada, the United Kingdom, France, Sweden, Germany, Russia and Greece, are also taking part in the fair.

A total of 24 of the world's Top 500 enterprises are sending purchasing delegates to the event, expecting deals for art crafts, textile, household appliance, hardware, telecommunication facilities, and food and medicines.

They include global retailing giants Wal-Mart, Carrefour, Metro, Japan-based Marubeni and Ito-Yokado, UK-based Tesco and indoor decoration giants B&Q and Ikea.

Seminars focusing on frequent queries by SMEs, such as financing issues and legal support will also be held during the fair.

A seminar on technology transfers between research institutes and universities and SMEs is set to be held tomorrow (Oct. 20).

The new study proposed a two-prong solution to the labour shortage in the low-pay segment:

The government was advised to strengthen in the area of information collection and distribution. Data of labour resources and jobs available should be gathered into a database, then analyzed and made public.

Local labour bureaus should adjust the minimum wage and publish a guidance for market wages. There could also be training programmes geared towards the needs of the business sector. At the same time, the government should protect the rights of labourers.

For companies that do the hiring, the report suggested raising the wage standard for their workers. Employers should refrain from forcing overtime onto workers, but were encouraged to buy insurance for them, sign labour contracts and abide by them, which would include paying for overtime.

They should also improve the living and working conditions of their employees, broaden the scope of recruiting from merely wall posting to professional employment agencies.

Finally, employers were encouraged to invest in training, which could be done with local schools.

Editor: Olivia