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    The Real Reason For The Failure Of Smes

    2011/8/1 16:36:00 51

    Enterprise Investment Profit

    Recently, the collapse of small and medium-sized enterprises in China is considered by most people to be

    enterprise

    Lack of money.

    But, have we ever wondered why SMEs are short of money? Are enterprises not profitable institutions? If enterprises earn more money than they spend, will they be short of money?


    In fact, the root cause of the failure of SMEs is not because enterprises are short of money, but rather difficult for enterprises to make money.

    The lack of money is the reason why enterprises are hard to make money.

    Because enterprises can not earn money, it leads to difficulties in supporting enterprises.


    Why is it so hard for Chinese SMEs to make money?

    To tell you the truth, in recent years, entrepreneurs in China's small and medium sized enterprises have made more money than real businesses, because they have high profits, fast growth, low cost and easy money making.

    Such a system, lazy people get rich, hardships suffer, entrepreneurs suffer, real estate people benefit, so most of China.

    Entrepreneurship

    None of them lived in the scene of speculators.

    It is strange how society develops and prices do not rise.


    The collapse of small and medium-sized enterprises is actually the curse that has been planted in the past few years.

    Because in the past, when the enterprise was making money, the boss did not invest the money he made by his company to his own enterprise to cultivate the internal strength of the enterprise, but rather invested the profits of the company in real estate.

    Because this year's house is not good to sell, enterprises encounter the impact of external environment, and their own lack of resistance.

    So the capital flow of enterprises is not good enough to survive.


    However, some of our media, experts and scholars do not think this way. They are only blindly accusing banks of not lending.

    I do not agree with this view.

    Because as a business owner, you didn't do well when you were rich, but did not enhance the competitiveness of enterprises, but everywhere.

    Investment

    Real estate.


    Now that there is a problem in real estate, when a company has no money, it is looking for a bank loan. Is the bank willing to give it to you? If the business is short of money today, then the loan comes to mind. So what did the boss do?

    If the bank gave you the money now, if the business collapsed, he would go for it. So the bank could not borrow money, but also had his difficulties. He hoped that the boss would understand more.


    The reason why China's small and medium-sized enterprises are so easy to go bankrupt is that too many bosses do not do business as a business, they just do business as a business.

    What is the difference between doing business and doing business? I personally believe that if an entrepreneur can make his own business as a career, he will be very focused.

    His focus will be on how to make his career bigger and better.

    He will be persistent, strong, single-minded and long-term in his field. His motive is not only to think about how to make more money, but also how to pursue his sense of achievement and how to become the first in the industry.


    If a person does business as a business, he may have different ideas and practices.

    Because his interest is in money, not in matters.

    So when things don't work well, he will change careers immediately.

    In addition, even if his company earns money, the boss will not enhance the core competitiveness of the company.


    Because he believes that the purpose of entrepreneurship is only to make money, rather than invest in enterprise platforms, build brand.

    So for business people, the purpose of entrepreneurship is to pursue results rather than improve the process.

    Even if a business owner makes money, he is not willing to invest money into the enterprise or employees. This is the difference between the boss doing business and doing business. If the boss is doing business in the way of business people, it is bound to be difficult for the enterprise to upgrade.


    Because for a business, it is sure to make money. What they do more is to focus on the opportunity to make money in front of them, and never pay attention to the future changes of the market.

    So this is the reason why most Chinese owners have real estate.

    Because for short-term interests, real estate is really easier than making money.

    Why do they have to be an enterprise and make themselves so hard? But they never thought that if one day the real estate was not done well, what would the enterprises support? So this is the main reason leading to the collapse of most of the small and medium-sized enterprises today.


    Today's small and medium-sized enterprises can overcome this barrier.

    Actually, it is not decided by today's Bank, but decided by a few years ago.

    Just a few years ago, too many bosses could not see it and could not imagine it would happen today.

    Because of the survival and development of enterprises, bosses must always pay attention to the future changes of the market, not just the immediate income.


    The competition of enterprises must be money, but the long term competition must depend on the future.

    If the prospect of the enterprise is gone, how much longer can the money in the enterprise account for itself? Today, most enterprises fail because they are short of money, but the business is short of prospects. If the business prospects are gone, then how can the banks help you? Can he help you for a while? Can it help you?

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