Since the reform and opening up，China has developed and strengthened the private economy，and improved the support for small and medium enterprises，small and medium enterprises have become an important part of economic development. Small and medium enterprises in Shandong Province have been flourished，although the number of small and medium enterprises has increased rapidly，their anti-risk capability is poor and life cycle is short. This report compiles the Small and Medium Enterprises Development Index of Shandong Province by constructing the evaluation index system of the small and medium enterprises in Shandong Province，tracks the developing situation of the small and medium enterprises in Shandong Province for a long time. The development index for 2018 was 111.71，an increase of 3.47% compared with 2017. This indicates that the overall development of the small and medium enterprises in Shandong Province is improving，and the small and medium enterprises play a significant role. However，the small and medium enterprises still have characteristics that the overall profitability weak and the financing issues have been partially alleviated. Therefore，the national and provincial governments should work together to build a business environment that is suitable for the development of small and medium enterprises. The small and medium enterprises should actively integrate into the national development strategy and Shandong Province development plan，converge various innovative resources，constantly adapt to changes in the market environment，and endeavour to grow into high-quality innovative small and medium enterprises.