Restricted Factors And Countermeasures For Development Of Chinese Middle And Small Companies

The middle and small companies play important roles in economy. In the U.S.A, they are called the back of American economy, while in Japan, people believe that without them, there will be no prosperity of its development. The middle and small companies are the micro-base of marketing economy system, which is the main driving force for further reform. However, due to some aspects both in history and in economic institution, the middle and small companies, especially those private companies, are ignored and suppresses in a long time, which leads to serious impediment on their development. On the condition of global financial crisis, their development is even more difficult. In Changchun city, the middle and small companies are mainly concerned with the industry of equipment production, and their future is a real problem needed to be solved. In this paper, I focus on the deep analysis of restricted factors on development of middle and small companies in Changchun, on the basis of review on their history and current circumstance. The main content of this paper is as follows.In the first part, I make a review on the theoretical structure of the development of middle and small companies. I define the conception of company and its taxonomy, introduce the choice of their organizing modes and point out the significance of developing them intensively.In Part Two, I introduce the general circumstance of development for the middle and small companies in Changchun. In my opinion, there is a wide spread of industries that the companies participate, but their development is in a slow speed, because there are some mistakes in their thinking modes, there is some difficulty in their finance, there is some irrational aspects in their composition, and there are some conservative elements in their management.In Part Three, I emphasize that there is some effect from financial crisis on the existence and development of the middle and small companies in Changchun. Firstly, there is a change in internal and external economic circumstance; Secondly, the middle and small companies in Changchun are weak in resisting the crisis; Thirdly, the contradiction between supply and need is outstanding, and there is a severe surplus in productive force; Fourthly, there is a pressure from finance, fund and assurance.In the fourth part, I explore the problem existed in the middle and small companies in Changchun and their causes. In my idea, causes belonging to reforming are repeating establishment, unreasonable development, slow reform in these companies, severe family-mode management. Causes belonging to developing are imperfect social service system for these companies, unscientific functioning process of these companies, low-leveled creativity in employees and rapid flow in employment. The ultimate reason caused the aforementioned problems are first that the technique and related system are backward, secondly that the reforming pace of the companies is slow, thirdly that their industry orientation is low and their brand consciousness is dim, fourthly that there capacity to more financial support is small and fifth that it is incompatible between employment system and marketing economy.In the fifth part, I propose some tactics on enhancing the competitive power of the middle and small companies in Changchun city. The problems being faced with the companies need to be solved with further corporate reform in a great degree. The details are as follows. First, we need to develop the group of middle and small companies. Second, we need to promote the group with special markets, and build up a compact relation between market and economic bodies. Third, we need to advance the creativity of fund products and propel the transition of industry. Fourth, we need to explore new products and increase the capacity to technological creation. Fifth, we need to push the pace of institutional creation, and change the mode of economic development. Sixth, we need to raise the degree of talent cultivation, and make the related circumstance perfect.In Part Six, I make a conclusion. All in all, we need to adjust five kinds of relations so as to advancing the reform and development of middle and small companies in Changchun, which are reform and development, absorbing productive force and raising technology, points and layers, the central government and local economy, and the middle and small companies and the large companies. With these strategies, can we make a good achievement on the reform and development of middle and small companies in Changchun.