Abstract：By comparing the SMZ in Henan companies with their peers in developed countries, this paper studies the legal environments for these SMEs in China.The author finds that there many problems such as, like incomplete legal system, unfair legal treatment, and loose legal enforcement, a better legal environment, etc.In order to protect the interests of SME in China, we should develope more comprehensive legal system, strengthen law-bound local government, cautiously handle economic-related disputes and inter-company debt issues.

Keyword：SME;external environment;legal system;