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Small-and medium-sized businesses are leading the way in creating new jobs, according to an industrialist.

Li Zibin, chairman of the China Small-and Medium-Sized Enterprises Association, said small-and medium-sized businesses are playing a key role in advancing productivity, narrowing the gap between urban and rural areas, ironing out regional disparities, promoting employment and increasing the income of urban and rural residents.

"Small-and medium-sized businesses are also an active force in technical innovation," said Li, who is attending a conference on the development of small-and medium-sized businesses.

The conference is part of the activities organized for the 11th China Chongqing Fair for Investment and Global Purchase which runs from April 18 to 21.

More than 4.3 million small-and medium-sized enterprises are registered in China. According to Li, they contribute 59 percent of China's gross domestic products (GDP) and 50 percent of the country's tax revenue.

Li claimed that the country's small-and medium-sized firms employ 75 percent of China's labor force, generate 66 percent of the country's patents and produce 82 percent of the country's new products.

"However, small-and medium-sized enterprises are facing problems such as financing difficulties and inadequate competitiveness," said Li, who urged government departments to make greater efforts to help small-and medium-sized businesses develop.

(Xinhua News Agency April 21, 2007)