Smes The Early Days Of Risk Aversion

Entrepreneurship is becoming a common phenomenon in China nowadays, with the rapid development of the national economy, the trend of the international market, and the application of the internet, more and more people are interested in entrepreneurship and begin to build their own businesses. At the same time, the government regulations and legal procedures are in favor of the entrepreneurship, hence, it is a time of entrepreneurship. However, quiet a lot of new enterprises go into bankruptcy at their beginning stage because of all kinds of problems. As one survey reveals, 25% of the small and medium-sized enterprises incubated in the Zhongguancun Area of Entrepreneurship failed even during their start-up stage. The propose of the paper is to analyze the various risks that the new start-ups might meet at their initial stage, and put forward the proper ways to avoid the risks and to resolve the corresponding problems in order to make the further development possible.This paper includes five parts. The first part defines the conception of the Entrepreneurship, and describes the reasons and the internal and external environment for entrepreneurship. The second part analyzes the characters of the new minor enterprise, and points out that flexibility and lack of ability to resist the risk are the main characters at their beginning. The third part analyzes every kind of possible risks the new small enterprise will meet at their beginning, the problems involve in the insufficiency of capital, the false decision on certain project, the ignorance of the management and so on. The forth part suggests the right way to avoid the risks and to solve the corresponding problem, the specific ways including revenue and profit is the core strategy for a new minor company at the beginning, necessary current capital sustain the enterprise normally running, team building guarantee the enterprise an accumulation of gentleness and strength, a concert of energies. At the end of the paper, i.e. the five part, the author discusses the testing for a qualified entrepreneur and the right attitude to the failure for the loser as a reference in addition.