In 2010，Guangzhou has maintained stable and healthy development of SMEs in the good momentum in promoting steady economic growth in Guangzhou，ease employment pressure，and promote private economic development has played an important role. This is to speed up the implementation of Guangzhou national，provincial and municipal decisions and arrangements to support SME development and effective measures are inseparable. However，despite the small and medium enterprises in Guangzhou has had a certain size and status，but there are still many problems，leading to its overall competitiveness is poor. Therefore，a full understanding of SMEs and Guangzhou to promote the practice of private economic development mainly based on small and medium enterprises in Guangzhou from the ability of independent innovation，speed up transformation upgrade，expand domestic and foreign markets，and enhance the management level，etc. to seek greater development in the new period.