For the small and medium enterprises in the scope of industrial，they have the character of universality which other enterprises do not process，and they are in a market which has the scale requirement. And all of the characteristics decide the inborn cluster survival mode of the small and medium enterprises which can be an actual pattern needs the support and guidance of the government policy. However in the practice of the industrial development the government fails to provide the efficient policy and potent supervision due to the lacking of the cognition and study of the function of those enterprises. And as a result，the government used to pay more attention to the gathering of the Small and medium enterprises in the aspect of quantity and region but ignore the cultivation of the industrial chain，or the government likes to build the professional markets and parks instead of digging and educating the scale economy and external economy among the economies. Although this kind of policy make the small and medium enterprises have the form of cluster development，they cannot achieve the inner economic function of the industry clusters and will lose the internal vitality of the sustainable development.
(2) Unreasonable market structure and imperfect market mechanism
Comparing with the market environment which the other small and medium enterprises have，the market structure of the industrial of our country is unreasonable，and the problem of the unreasonable market mechanism is becoming more and more serious. Just as what we have said，the universality of the product and scale of the culture market decide the market structure of the industrial must be the competitive market structure. And at the present，our management system determine that the industrial still remain the stage of “limited open”，and the market structure has the characteristic of the coexisting of the administrative of monopoly and excessive competition，and the unified market has not formed. And correspondingly，the different links in the whole chain have different market structure，some are in the mode of the administrative monopoly and some are in the mode that most small and medium enterprises are full competing. The monopoly link is seriously separated from the full competition link and the most Small and medium enterprisess have no the space of market extension. The market mechanism cannot take the action to conform and reform the segment market and it is hard to form a unified and complete industry market system and the formal market transaction relationship. Therefore，the actual contradiction between the marketing characteristic of the market and the management system makes the market mechanism cannot play a full role.
(3) Unreasonable industrial organization and the high transaction cost
The above content makes the analysis that the defect of the government and the market restricts the formation and development of the Small and medium enterprises from the aspect of the internal operation mechanism. The industrial organization form of the Small and medium enterprises in our country are displayed as the” tiny，weak，disorder and loose” of those enterprises.
The unreasonable industrial organization restricts the formation of the small and medium enterprises’ system of division of labor and the development of the chain. And due to the market separation and the credit deficiency，the transaction cost of enterprises is increased and the formation of the industrial cluster is restricted in the end.
(4) The lack of finance restricts the development of the Small and medium enterprises cluster
The problem of the fund raising for the development of the Small and medium enterprises cluster has been an universal problem and the reason why so many investors do not want to invest in the small and medium enterprises are the high risks and it is hard to forecast the income from the investments or they think that the small and medium enterprises have too low benefit to invest. For the general small and medium enterprises，the small and medium enterprises do larger uncertainty and higher risks to engage. And that is also the reason why although the industrial belongs to the industry based on the capital，techniques and human resources； it is really hard to precast whether the product can achieve the approval of the target customers and market and whether the product can gain something. And by the way，because of the base of the major enterprises’ operation is single projects and there is no methods to share the risk in investment，the problem of the developing finance in the Small and medium enterprises is bigger than that in those general small and medium enterprises. The weak ability of finance absorption leads to the small general capital and high market risks for the Small and medium enterprises. Besides，the difficulty for the intellectual property being the guarantee to gain the loan also restricts the investment and flotation of the loan and as a result the Small and medium enterprises cannot develop and strengthen themselves.
(5) The barrier of the information and knowledge restricts the formation and development of the Small and medium enterprises
