Analysis Of Short Life Reasons For Small And Medium Private Enterprises: Problems Of Owners

The average life expectancy of private enterprises in mainland China is about 5 years, which is an indisputable fact.

According to reports, the industrial and Commercial Department of Wenzhou City, Jiangsu Province, has released a "life cycle" report on SMEs. The report shows that nearly half of the small and medium-sized enterprises "survive" for less than 4 years, and some industries have an average life expectancy of only two years.

What causes the average life expectancy of private enterprises in mainland China to be around 5 years?

For enterprises, the problems to be solved are: strategy, human resource management, marketing management, production management, crisis management, corporate culture management and capital management.

From the point of view of management, many problems constitute a large system ring. Every problem is a small system ring. These rings are connected and interlinked. In the point of connection ring, the system ring can not be properly circularly circularly because of a small detail.

The growth and development of enterprises are faced with many subjective and objective factors. However, from a deeper perspective, the following aspects will affect the success or failure of enterprises: the existence of business owners: 1, pattern: what kind of business the boss leads, the comprehensive quality of the old board, the character and the mode of thinking will determine how big the enterprise can do and how far the enterprise can go.

The way of thinking determines the way out and the pattern affects the train of thought.

Of course, the pattern can be changed, and quality and character can also be changed.

The management mentality of 2 and "home world": most of the bosses of Chinese private enterprises are heroic leaders. They concentrate too much on the external public relations and internal operation of enterprises, especially in the specific affairs of internal operation of enterprises.

On the one hand, the boss's time and energy are limited, inevitably there are a lot of forgetting. On the other hand, it will seriously affect and interfere with the work of the responsible person.

It will form a management mode that takes the boss as the center and launches. Basically all the information will be concentrated on the boss, and all the instructions will come from the boss.

But the boss really spends less time on the long-term development plan and the improvement of the internal management of enterprises, which will seriously affect the development of enterprises and the economic benefits of enterprises.

Boiled water frogs, there was a problem with the management, and the boss still used a bunch of idiots.

In fact, the boss's time and energy should be arranged as a whole: 1/3 major decisions for marketing and production management; 1/3 for management and coordination of major functional departments; 1/3 for understanding situations and handling emergencies.

According to the classical management science, the management of a manager is not more than 12, even if the information technology is applied.

Therefore, the boss only manages the appointment and dismissal of the functional departments and the abnormal situation during the term of office, that is, personnel and results only; the control of the normal process is done by the major functional departments.

3, the mentality of small and wealthy: market competition is cruel, and there are certain rules of the game. Especially in the current environment of China's rapid economic development, big fish eat small fish, fast fish eat slow fish cases are staged every day.

Once involved in the market, it is "in the rivers and lakes, not by oneself".

For enterprises, they will either develop rapidly or be eliminated by the market.

The mentality of small wealth can only cause small wealth to die.

In fact, there are certain reasons for the small fortune of enterprises, or opportunities or advantages. In the age of rapid development of information technology and rapid expansion of information, all opportunities and advantages will soon change.

4, inflation Psychology: at different stages of development, there will be some structural expansion in the different stages of development, but not necessarily the systematic growth of enterprises. Employers tend to expand their minds and expand their minds.

In addition, some of the so-called "high" people in enterprises or some so-called "high" people outside the company may have a "flicker" with the boss for the sake of personal interests, and the boss will be more floating.

It will result in blind market expansion under the condition that the market base is not really stable and the capital chain still has a lot of problems. Many offices and branches will be set up quickly, and a large number of recruits will be recruits.

Finally, the crash was common.