More government support should be given to small and medium-sized enterprises (SMEs) as they play a key role in creating jobs and driving growth, a lawmaker suggested yesterday.

Yao Jinbo, a deputy to the National People's Congress, the country's top legislature, and head of China's Craigslist-like 58.com, told China.org.cn that the proposal is based on his thorough research of the market and study of "the important role of SMEs in expanding employment" as well as difficulties faced as a result of external uncertainties.

Chinese SMEs contribute more than 50 percent of the country's tax revenue, over 60 percent of its GDP, more than 70 percent of technological innovations and over 80 percent of urban employment, according to a meeting of the State Council's leading group on promoting the development of SMEs, held last August.

The meeting also expressed the value the SME community has in driving national socio-economic growth, improving people's well-being, and nurturing entrepreneurship.

However, employment for SMEs is not improving. More time is needed for further improvement in the performance of SMEs as challenges at home and abroad have lingered and some measures have yet to take effect, according to a report compiled by the National Development and Reform Committee (NDRC) and the China Association of Small and Medium Enterprises.

In his recommendation to this year's NPC session, Yao calls for the promotion of vocational education, better integration of education and industrial development, financial support to reduce tuition fees in vocational schools, as well as subsidies to companies for offering on-the-job training.

In light of the downside risks in economic growth, he calls for government measures to reduce labor costs for these businesses.

"I suggest that government authorities conduct research and studies on cutting social security premium rates to reduce enterprises' burden, and provide more practical support to SMEs, such as a larger percentage of refunds on unemployment insurance premiums and guaranteed loans for startups with subsidized interest payments," said Yao.

That would help create a more business-friendly environment for SMEs and stabilize employment, he concluded.