Abstract: It has been proven in practice that the sound development of small and micro businesses needs government's corresponding policy to aid and support so that they enjoy a good policy-environment. The fruitful development relies on not only good policy from the government but also one which is timley revised according to the actual operation of. Based on a survey conducted on the relation between the government's policy and the actual operation of the small and micro businesses in Jiangsu province the paper pinpoints that the present policies of the central and local government has brought about obviously good outcome in Jiangsu, but it lacks consistency. To have a really sound growth for the small and micro businesses, more accurately-targted and consistent policies are needed.