Misunderstanding Of Smes Hinders Their Development

The business environment and business culture in China are quite different from those in the West. The portray of western enterprise management models in books is not necessarily useful in China.

In China, some scholars have some misunderstandings in the view of private enterprises. If these mistakes are not eliminated, they will affect the healthy development of private enterprises in China, and will also affect the employment mentality and value orientation of young people.

Myth 1: private enterprises must be on scale. The general view is that our private enterprises are too small to scale and should form groups and build leading enterprises.

The author thinks that this is a kind of unrealistic view of good and great joy.

In fact, in most countries, more than 95% of the enterprises are small and medium-sized enterprises.

There are only three or four large enterprises in a region.

If all enterprises are on scale, one is impossible, and the two will lead to large numbers of unemployed.

Because the scale of business capital is very organic, it has to use more capital to promote labor force, which is very difficult for most small and medium sized business owners to control.

The scale of enterprises is not difficult. Once scale is formed, debt crisis can easily be formed. If there is a reduction in market capacity, enterprises are bound to collapse.

Zhejiang leap, Zhejiang Jin Wu and Jiang long are greedy to extend in the industrial chain, resulting in the scale of enterprises and the asymmetry of corporate efficiency and "killing".

The scale of enterprises is not necessarily economies of scale.

If the enterprise's own competition system is not well constructed, the larger the scale, the quicker the "death" will be.

At present, the cost of labor has risen, the risk of stocking has increased, the market capacity has declined, and the cost of financing has increased.

Misunderstanding two: private enterprises must be on the level. This is also an unrealistic formula and lacks theoretical basis.

Especially in China, enterprises that can neither go to the top nor go to high and new technology are everywhere.

Not only China, but also the vast majority of countries in the world.

Most of these small and medium-sized enterprises are labor-intensive enterprises. Once they have reached the new high technology and grade, it is necessary to reduce labor force.

Moreover, some enterprises, such as the service industry, need not take the lead in technological progress.

China's technological progress must adapt to the level of market demand. Many enterprises increase investment in cost because of technological pformation, and finally lead enterprises to go bankrupt.

By the end of 2007, ZARA had more than 400 factories in Spain that were used decades ago, and these old factories could create a ZARA that swept the globe.

It is obvious that industrial upgrading does not necessarily have to be on the top level. There is no need to spend so much money on big factories and high-tech factories.

In France and Italy, the voice of old looms can also be heard, which can "sing" the world's famous brands.

I am not opposed to technological innovation, but in clothing manufacturing enterprises, high-tech components are not embodied in production equipment, but in brand building and competition system construction.

An imported seamless underwear production equipment needs about 500000 yuan, but the production is still low value-added products.

Modern factory is not a sign of industrial upgrading, and brand influence is an important reference for industrial upgrading.

Misunderstanding three: private enterprises must turn from family management to modern company management.

Practice has proved that if small and medium-sized enterprises with assets below five hundred thousand yuan, if family management is implemented, the cost can be optimized.

The implementation of a modern enterprise management mode for private enterprises actually violates the common sense of economics and management science.

In a small and medium-sized enterprise, the boss is the general manager, the daughter-in-law or daughter is the cashier, so the management mode is the lowest cost.

However, it is not denying that the scientific management level of family enterprises should be improved.

The owners of private enterprises must also master some necessary knowledge such as finance, marketing, production and regulations, so that they can not stay at the level of family management forever.

Enterprise management should go with the scale of enterprise development.

Economics believes that for a simple way of operation, if a complex organizational form is adopted, the cost of organization is higher than that of the organization, and the economy is not cost-effective.

Therefore, the household contract system should be implemented in China's agricultural production.

The farms in the United States are all family farms, because agricultural production and operation are simple.

Such a simple way of operation, if the use of complex collective or corporate organization, the organization cost will be higher than the organizational income.

Therefore, we should start from China's national conditions and study the successful side of private enterprise management, and analyze how this success should be innovating with the changes in the domestic and international economic situation and market conditions.

That is to say, we should study the adjustment and innovation of private enterprise management at any starting point.

If we have the above understanding, small and medium-sized private enterprises will get a better development environment, and local governments will no longer "hold high the banner of industrial upgrading and force the closure of workshop enterprises".

When many "star enterprises" and "leading enterprises" have collapsed, we should pay more attention to "small fish" and "shrimp".