Analysis On Small And Micro Enterprises Development

Since2008, Chinese big and medium enterprises have suffered from financial crisisoriginated from the United States. On the other hand, taking their own advantages, smalland micro enterprises (hereafter as SMEs) develop quickly. Till2010, the number of SMEsaccounts for nearly99%of all enterprises in China. At the same time, SMEs provide workfor80%of urban residences and the added value of their products equals to60%of GDP.On February1st2012, the state council launches a special plan to support the developmentof SMEs and states that SMEs play important roles in increasing employment rate andcultivating entrepreneur.Even though the government makes great effort to promote SMEs’ development,many problems still exist such as uneven quality, weak competition and financial support.Besides these common problems, each enterprise has its own problems too. Therefore, theirtop priority is to solve these problems.As an entrepreneur, the author conducts research on SMEs development experiencesboth home and abroad and applies them into its own businesses. Thanks to the research, theauthor avoids some common problems that may appear at the beginning. During thedevelopment, the author combines theories with reality and makes plans to solve particularproblems. It has been proved that entrepreneur’s personal qualities such as communicationskills, innovation skills and team building quality play critical roles in starting businesses.Moreover, advanced management process decides whether an enterprise can enjoy stabledevelopment.It is worth to mention that the author proposes the concept of “boss mechanism”which means that each department’s supervisor establishes cooperation relations withentrepreneurs and the supervisors decide their own departments’ development. Afteraccomplishing their production objectives, supervisors can take other orders and shareprofits with the company. In this way, every department becomes a SME and both thecompany and employees can enjoy development.It is hoped that these findings can throw some light on SMEs’ development.