This study investigates the relationship between employee equity incentives and job satisfaction among small and medium-sized enterprise (SME) employees in Sichuan, China. The objective is to examine whether equity incentives positively influence job satisfaction in this context. The study adopts quantitative research methodology, utilizing survey questionnaires to collect data from 408 participants employed in various SMEs across Sichuan. Correlation analysis is employed to analyze the relationship between equity incentives and job satisfaction. The findings reveal a significant positive correlation between the two variables, indicating that equity incentives are associated with higher levels of job satisfaction among SME employees in Sichuan. The study concludes that equity incentives can serve as effective motivators for employees, leading to increased job satisfaction and organizational commitment. These findings have theoretical implications for incentive theory and organizational behavior, contributing to a better understanding of how incentive mechanisms operate in the SME context. From a practical perspective, the study suggests that SMEs in Sichuan and similar contexts can leverage equity incentives as strategic tools to attract and retain talent, ultimately enhancing organizational performance. However, it is important to acknowledge the limitations of the study, including its cross-sectional nature, focus on a specific geographical region, and reliance on self-reported data. Future research could employ longitudinal or experimental designs to establish causality and explore the relationship between equity incentives and job satisfaction in diverse contexts. Overall, this study provides valuable insights that can inform human resource management practices and organizational policies in the SME sector, contributing to the broader body of knowledge on employee incentives and satisfaction.