Five Strategies For The Survival Of Private Enterprises

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The harsh reality of high cost, high tax burden and low profit has made it seem more difficult for private enterprises to survive than the financial crisis era. Indeed, development is facing many difficulties, but a large area of bankruptcy is hard to come up with.

The government should pay more attention to small and medium enterprises, especially the private economy.

Under the tight background, financing difficulty has become a common phenomenon. The financing difficulty of private enterprises is mainly structural financing. The financing of small and micro enterprises in private enterprises is more difficult. The government can consider establishing a support mechanism for small and micro enterprises to relieve the plight.

At present, the policy of supporting the private economy is enough, but the key is that the implementation is not in place.

We should increase the development of microfinance and broaden the financing channels.

The government can also consider establishing a support mechanism for small and micro enterprises, giving financial subsidies to more dynamic small and micro enterprises with innovation, and providing a discount rate support to enterprises that meet the direction of industrial development, technological upgrading and upgrading of products, and implementation of enterprise restructuring.

At the same time, we should focus on the development of small and micro enterprises guarantee institutions (companies), in registration and approval, encourage small businesses to jointly establish such companies, reduce access threshold, so as to provide more convenience for the development of small and micro enterprises.

Along this line of thought, more innovative forms of financing for small and micro enterprises can be considered.

Although small and micro enterprises generally have low mortgage capability and low credit level, China's small and micro enterprises have always had financing channels from private and family ties, and the more developed areas are, the more prominent.

To avoid bankruptcy caused by various reasons and form a bankruptcy tide, besides the government's above, we should also consider the following strategies.

First, breaking the monopoly of state-owned enterprises, the role of the government is great. Therefore, we must follow the objective laws and continue to deepen the reform of the system.

According to the National Federation of industry and commerce, during the period of 11th Five-Year (2006-2010 years), the number of private enterprises registered in China has exceeded 8 million 400 thousand, with an average annual growth rate of 14.3%. Private enterprises have become the largest enterprise group in China, accounting for 74% of the total number of enterprises in the country.

Although China has promulgated the "State Council's opinions on encouraging and supporting the development of non-public sectors such as private sector and private sector" in 2005 and 2010, and the State Council's opinions on encouraging and guiding the healthy development of private investment (i.e., "new 36"), most industries today are still far away from the private sector and can not afford to play in the market. "36 new opinions on encouraging and guiding the healthy development of private investment".

The private economy is the main force from the total.

If we look at the value added of employment and industry, the private economy has already exceeded half of the country's economy. When the economy develops to a certain extent, there will be pressure to push the reform.

Second, attach importance to technological innovation and industrial upgrading.

The era of low maintenance of workers in private enterprises has come to an end. The era of low cost has basically come to an end, and changes in industrial technology require higher input.

This requires private enterprises to attach more importance to technological innovation and industrial upgrading.

Private enterprises should have some choices when they enter the industry. They should consider the actual situation of enterprises and consider whether they have the capability and the necessity.

Faced with the problems of tight money and rising costs, private enterprises seeking to survive in the cracks need to take the road of "themselves".

Thirdly, helping the big is better than helping the small.

China's "12th Five-Year plan" clearly put forward the pformation of economic structure, expanding domestic demand, especially the proportion of consumption demand, which is the long term term of private enterprises.

Therefore, it is very important to stimulate the enthusiasm of SMEs and improve the business environment.

Development is a process from small to large. Only by allowing development can it develop. It is certain that the status of equal competition among private enterprises is not allowed. We must really treat the policies of state-owned enterprises and private enterprises alike. Many industries have not yet reached this level.

All private enterprises can engage in private enterprises. If private enterprises fail to do so, they will be allowed to engage in state-owned enterprises.

China's employment problem, the problem of ordinary people's income and the driving force of economic growth should largely lie with small and medium-sized enterprises.

The exclusion of enterprises must not be a big one, which requires fair competition in terms of institutional arrangements.

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Fourthly, private enterprises should take the road of "themselves".

Not all fields are suitable for private investment intervention, for example, private enterprises should participate in bidding for investment in public utilities, whether from capital or security considerations, it is often difficult to get the recognition of all parties.

Such a change is difficult and the process will be slow.

For a large number of private enterprises that are very good and bad, the state-owned enterprises, which are called "Big Macs" in terms of total capital and scale, are not easy to stand out even in the face of equal opportunities, let alone the dilemma in the cracks.

But with the advantages of small scale, flexible management and more efficiency, private enterprises should seize the opportunity to adjust quickly, make their characteristics and possess core competitiveness, which is the golden rule to achieve adversity.

If private enterprises want to develop in the long run, they must have their own core competitiveness. They must have unique business models or core technologies.

The successful experience of many successful private enterprises also proves this point.

The core technology can not be replaced by other enterprises. Whether it is buying patented technology from abroad, or having the unique advantages that others can not replace in certain fields, these are easy to win in the market competition.

Fifthly, private enterprises urgently need five innovations: system and mechanism innovation, management innovation, technological innovation, business innovation and risk prevention innovation.

In the current environment of tightening monetary policy and dealing with inflation in an all-round way, the "one size fits all" management model will naturally hurt many innocent people.

From the perspective of market economy, when the essential elements of production are basically the same, when other elements are similar, apart from the strength of funds, the only way to innovate is Huashan.