After China's entry into WTO, the integration of China's market with the international market forced China to gradually open its domestic market, break down tariff barriers, cancel government protection, and abide by internationally accepted trade laws, regulations and practices. This will certainly attract more large foreign multinational enterprises to participate in the competition in China market, thus intensifying the intensity of market competition. Facing the new economic situation, small and medium-sized enterprises in China can only survive and develop if they adapt to social and economic development, constantly improve their production technology, change their business philosophy and open up new markets. The relationship between the public and the development strategy of small and medium-sized enterprises in China

After China's entry into WTO, the integration of China's market with the international market forced China to gradually open its domestic market, break down tariff barriers, cancel government protection, and abide by internationally accepted trade laws, regulations and practices. This will certainly attract more large foreign multinational enterprises to participate in the competition in China market, thus intensifying the intensity of market competition. Facing the new economic situation, small and medium-sized enterprises in China can only survive and develop if they adapt to social and economic development, constantly improve their production technology, change their business philosophy and open up new markets.

(A), at this stage, China's small and medium-sized enterprises have the development advantages and difficulties.

If an enterprise wants to be invincible in the fierce market competition, it must first analyze its internal and external environment and formulate and implement the corresponding development strategy.

1, the inherent advantages of enterprises. Since the reform and opening up, China's small and medium-sized enterprises have mushroomed, becoming an important part of China's national economy and an important force to promote China's economic development and expand employment. The sudden emergence of small and medium-sized enterprises in China must have its own advantages, mainly:

Personalization of the subject of property right. "Two rights", that is, the relative unity of ownership and management rights, make SMEs have certain institutional advantages in asset allocation.

The organizational structure is simple. The lack of management level makes the decision-making of enterprise leaders and the feedback of management information have certain efficiency advantages in transmission speed, and also have certain advantages over large enterprises in the authenticity and symmetry of information.

Flexible product conversion and capital transfer. Small and medium-sized enterprises have certain cost advantages in the advance and retreat of industries and markets.

Low organic composition and low asset concentration make small and medium-sized enterprises have capacity advantages in absorbing labor.

2. The disadvantages of the enterprise. It is obvious to all that the survival of small and medium-sized enterprises in China is difficult, which is closely related to the macroeconomic environment and people's discrimination and prejudice against small and medium-sized enterprises, but the disadvantage of enterprises themselves is the fundamental reason that hinders their development. These shortcomings include:

The property right system is unreasonable. Many small and medium-sized enterprises registered as limited liability companies in China are essentially individual owners and have not established modern corporate governance structure.

The scale of enterprises is too small to form scale effect.

Weak technical innovation ability.

This product lacks competitiveness. The focus of product competition is frequent price wars, rather than developing new products and improving marketing methods and product quality.

Low management level. Most managers of small and medium-sized enterprises have not received professional training and education, and the enterprise system is not perfect enough, which leads to management confusion, which is the biggest management crisis faced by small and medium-sized enterprises.

3. Opportunities provided by the external environment. Since the 16th National Congress of the Communist Party of China, the government has increased its support for small and medium-sized enterprises. The strategy of developing the western region and the policy of vigorously exploring the rural market implemented by the state have provided huge business opportunities for the survival and development of small and medium-sized enterprises. These opportunities include:

The state and government have been paying attention to the development of small and medium-sized enterprises. We have begun to study countermeasures and take corresponding support measures.

Joining WTO has brought great opportunities to the development of small and medium-sized enterprises. At present, one of the biggest difficulties encountered by small and medium-sized enterprises is market access, the essence of which is fairness. The principle of national treatment in WTO rules requires that domestic and foreign-funded enterprises be given equal national treatment, which has brought a great turn for changing the unequal treatment of small and medium-sized enterprises. In terms of financial services and capital markets, the government is gradually opening up the right to operate RMB business and financial retail business to foreign banks; At the same time, the geographical and field restrictions on foreign banks' business in China are gradually being lifted, which makes small and medium-sized enterprises expand the channels of indirect financing. For the growing small and medium-sized high-tech enterprises, it is also expected to get opportunities for foreign venture capital and overseas listing. The reduction of tariffs reduces the purchase cost of imported mechanical and electrical products and complete sets of equipment, which is beneficial to small and medium-sized enterprises to use advanced production equipment and improve their labor productivity, production technology and scientific and technological content.

Finally, the globalization and division of labor of production enable small and medium-sized enterprises with certain characteristics and expertise to integrate into global production, providing opportunities for enterprises to explore the international market.

4. Threats caused by external environment. Threats from the external environment mainly include:

The unfairness of government policies. The imperfect government management system, the lack of industrial guidance and development planning for the development of small and medium-sized enterprises, and the lack of relevant laws and regulations to support small and medium-sized enterprises have made some small and medium-sized enterprises lose opportunities for development.

The state's discriminatory policy towards non-public enterprises has not been completely abolished. Some small and medium-sized enterprises are still treated unfairly in taxation, land use and asset-liability adjustment.

Financing difficulties. Due to the lack of bank credit guarantee, it is difficult for enterprises to raise funds from banks. Due to the government's lack of effective supervision over the financial market, the GEM and the second-board market with direct financing cannot go out for a long time, which leads to the lack of direct financing channels for the development of small and medium-sized enterprises.

(B), SMEs should adopt the development strategy

1. Improve the business model, subdivide the target market, and determine the advantageous industries and development strategies. If small and medium-sized enterprises want to abandon the traditional marketing method with price war as the main means and avoid disorderly and inefficient repeated investment and production, they must subdivide the target market and enter the corresponding market segments in line with the principles of "Excellence", "Speciality" and "Specialty" to provide living space for enterprise development. The main measures are as follows:

We can use the flexibility of its management system, the diversity of marketing methods and the adjustability of production methods to enter the consumer goods industry and service industry with small market scale and high demand differentiation that large enterprises are unwilling to enter. This requires enterprises to update products in time and provide quality services in time according to customers' different preferences and requirements for personalized services.

For small and medium-sized enterprises with national or regional characteristics, they can enter industries that strive for perfection with traditional skills. Such enterprises should take advantage of the characteristics that their national or local crafts are not easy to be imitated and can not adapt to large-scale mechanized production, actively explore the international market and create a broader living space.

Small and medium-sized processing enterprises can take advantage of global division of labor and combine with large enterprises to become their "satellite factories" and reduce their own competitive risks. In this way, the advantages of small and medium-sized enterprises and large enterprises complement each other, which not only reduces transaction costs and expenses, but also rationally allocates resources and improves the economic benefits and market competitiveness of both parties.

For small and medium-sized enterprises that do have advantages in high technology, they can enter the "double high", that is, high-risk and high-yield emerging industries. In this industry, factors of production such as science and technology, human capital and knowledge are more important than traditional factors of production such as capital and land. Small and medium-sized enterprises, with small investment, rapid transformation and low switching cost, can weaken the investment risk of enterprises in emerging industries and benefit the development of enterprises.

2. Establish multi-level financing channels.

3. Comprehensively promote the informatization process of SMEs. Informatization is the inevitable trend of global economic development. In order to adapt to the trend of the times, small and medium-sized enterprises must carry out enterprise information transformation and take the road of combining technology with management. In the process of information transformation, small and medium-sized enterprises should pay attention to the following aspects:

Due to the different nature of the industry to which the enterprise belongs, the content of its informatization should also be different. This requires the informatization of enterprises to be implemented in different industries.

Enterprise informatization must be combined with enterprise management innovation and process reengineering, and follow the principle of "overall planning, phased implementation, phased implementation and gradual optimization".

Small and medium-sized enterprises can rent a powerful high-bandwidth network provided by Internet platform providers to connect with the backbone network, or they can join the Internet, make a joint home page on the Internet, and store the information of each enterprise, thus reducing the related network expenses and network maintenance personnel and reducing the production cost.

Leaders of small and medium-sized enterprises should attach great importance to the informatization process of enterprises, set up special information departments within enterprises, designate leaders to be responsible, and vigorously cultivate professional and technical personnel with informatization knowledge and ability to use informatization technology.

4. Establish a scientific and effective incentive mechanism. Small and medium-sized enterprises, especially family enterprises, have some difficulties in attracting, retaining and cultivating talents due to their own institutional restrictions. Therefore, it is necessary for small and medium-sized enterprises to comprehensively reform the internal personnel incentive system in order to improve the quality of personnel, stimulate the enthusiasm and creativity of employees, and then improve the management level of enterprises, so as to achieve the purpose of rational flow of talents within enterprises. The main measures are:

Strive to realize the transformation from traditional personnel management to human resource development and management. Transforming the personnel department from a consumer affairs department to an investment strategy department means transforming the traditional business function into human resource development and management, attaching importance to people-oriented management and human resource development, realizing the unity of values of employees and enterprises, and establishing pressure mechanism, competition mechanism and elimination mechanism.

Establish a scientific and reasonable incentive mechanism. We should pay attention to the combination of material incentives and spiritual incentives, and realize a multi-level, multi-content and multi-way combination incentive model. In order to meet the individual needs of employees, it is necessary to establish different incentive systems, including target incentive, example incentive, training incentive and so on. And strengthen the comprehensive application of positive and negative incentives.

External compensation should adhere to the combination of short-term incentives and long-term incentives. According to different positions and job nature, different salary systems are implemented, such as post salary system, structural salary system, salary point salary system and annual salary system, and employee stock ownership and stock option plan are implemented.

Establish an assessment system with performance assessment as the core. In line with the principle of comprehensively examining employees' values, work performance, work attitude, business skills and work ability, we will change the phenomenon of emphasizing qualitative, quantitative, experience impression, scientific prediction, historical performance and development potential.

5. Establish scientific and advanced management mode and production mode. Technological modernization must be accompanied by corresponding management modernization, otherwise it will be very difficult to popularize high and new technologies. To realize management modernization, we should not only make profound changes in ideas, management system, organization and human resources development, but also learn new ideas and methods of modern management. We should not only introduce and absorb foreign advanced management methods and means, but also inherit the good experience of traditional management in China, and combine introduction, inheritance and innovation to create a modern production management model with China characteristics. New concepts and methods of modern production management, such as industrial engineering (IE), concurrent engineering (CE), lean production (LP), agile manufacturing (AM), etc. Advanced production management modes such as manufacturing resource planning (MRPⅱII II), just-in-time production mode (JIT) and computer integrated manufacturing system (CIMS). Small and medium-sized enterprises should give full play to their unique flexibility and variability, abandon the traditional and backward management mode of state-owned enterprises, and create their own management mode on the basis of fully absorbing excellent management experience and combining their own reality.

(A), at this stage, China's small and medium-sized enterprises have the development advantages and difficulties.

If an enterprise wants to be invincible in the fierce market competition, it must first analyze its internal and external environment and formulate and implement the corresponding development strategy.

1, the inherent advantages of enterprises. Since the reform and opening up, China's small and medium-sized enterprises have mushroomed, becoming an important part of China's national economy and an important force to promote China's economic development and expand employment. The sudden emergence of small and medium-sized enterprises in China must have its own advantages, mainly:

Personalization of the subject of property right. "Two rights", that is, the relative unity of ownership and management rights, make SMEs have certain institutional advantages in asset allocation.

The organizational structure is simple. The lack of management level makes the decision-making of enterprise leaders and the feedback of management information have certain efficiency advantages in transmission speed, and also have certain advantages over large enterprises in the authenticity and symmetry of information.

Flexible product conversion and capital transfer. Small and medium-sized enterprises have certain cost advantages in the advance and retreat of industries and markets.

Low organic composition and low asset concentration make small and medium-sized enterprises have capacity advantages in absorbing labor.

2. The disadvantages of the enterprise. It is obvious to all that the survival of small and medium-sized enterprises in China is difficult, which is closely related to the macroeconomic environment and people's discrimination and prejudice against small and medium-sized enterprises, but the disadvantage of enterprises themselves is the fundamental reason that hinders their development. These shortcomings include:

The property right system is unreasonable. Many small and medium-sized enterprises registered as limited liability companies in China are essentially individual owners and have not established modern corporate governance structure.

The scale of enterprises is too small to form scale effect.

Weak technical innovation ability.

This product lacks competitiveness. The focus of product competition is frequent price wars, rather than developing new products and improving marketing methods and product quality.

Low management level. Most managers of small and medium-sized enterprises have not received professional training and education, and the enterprise system is not perfect enough, which leads to management confusion, which is the biggest management crisis faced by small and medium-sized enterprises.

3. Opportunities provided by the external environment. Since the 16th National Congress of the Communist Party of China, the government has increased its support for small and medium-sized enterprises, and the strategy of developing the western region and the policy of vigorously exploring the rural market implemented by the state have provided huge business opportunities for the survival and development of small and medium-sized enterprises. These opportunities include:

The state and government have been paying attention to the development of small and medium-sized enterprises. We have begun to study countermeasures and take corresponding support measures.

Joining WTO has brought great opportunities to the development of small and medium-sized enterprises. At present, one of the biggest difficulties encountered by small and medium-sized enterprises is market access, the essence of which is fairness. The principle of national treatment in WTO rules requires that domestic and foreign-funded enterprises be given equal national treatment, which has brought a great turn for changing the unequal treatment of small and medium-sized enterprises. In terms of financial services and capital markets, the government is gradually opening up the right to operate RMB business and financial retail business to foreign banks; At the same time, the geographical and field restrictions on foreign banks' business in China are gradually being lifted, which makes small and medium-sized enterprises expand the channels of indirect financing. For the growing small and medium-sized high-tech enterprises, it is also expected to get opportunities for foreign venture capital and overseas listing. The reduction of tariffs reduces the purchase cost of imported mechanical and electrical products and complete sets of equipment, which is beneficial to small and medium-sized enterprises to use advanced production equipment and improve their labor productivity, production technology and scientific and technological content.

Finally, the globalization and division of labor of production enable small and medium-sized enterprises with certain characteristics and expertise to integrate into global production, providing opportunities for enterprises to explore the international market.

4. Threats caused by external environment. Threats from the external environment mainly include:

The unfairness of government policies. The imperfect government management system, the lack of industrial guidance and development planning for the development of small and medium-sized enterprises, and the lack of relevant laws and regulations to support small and medium-sized enterprises have made some small and medium-sized enterprises lose opportunities for development.

The state's discriminatory policy towards non-public enterprises has not been completely abolished. Some small and medium-sized enterprises are still treated unfairly in taxation, land use and asset-liability adjustment.

Financing difficulties. Due to the lack of bank credit guarantee, it is difficult for enterprises to raise funds from banks. Due to the government's lack of strong and effective supervision over the financial market, the GEM and the second-board market with direct financing have been silent for a long time, leading to the lack of direct financing channels for the development of small and medium-sized enterprises.

(B), SMEs should adopt the development strategy

1. Improve the business model, subdivide the target market, and determine the advantageous industries and development strategies. If small and medium-sized enterprises want to abandon the traditional marketing method with price war as the main means and avoid disorderly and inefficient repeated investment and production, they must subdivide the target market and enter the corresponding market segments in line with the principles of "Excellence", "Speciality" and "Specialty" to provide living space for enterprise development. The main measures are as follows:

We can use the flexibility of its management system, the diversity of marketing methods and the adjustability of production methods to enter the consumer goods industry and service industry with small market scale and high demand differentiation that large enterprises are unwilling to enter. This requires enterprises to update products in time and provide quality services in time according to customers' different preferences and requirements for personalized services.

For small and medium-sized enterprises with national or regional characteristics, they can enter industries that strive for perfection with traditional skills. Such enterprises should take advantage of the characteristics that their national or local crafts are not easy to be imitated and can not adapt to large-scale mechanized production, actively explore the international market and create a broader living space.

Small and medium-sized processing enterprises can take advantage of global division of labor and combine with large enterprises to become their "satellite factories" and reduce their own competitive risks. In this way, the advantages of small and medium-sized enterprises and large enterprises complement each other, which not only reduces transaction costs and expenses, but also rationally allocates resources and improves the economic benefits and market competitiveness of both parties.

For small and medium-sized enterprises that do have advantages in high technology, they can enter the "double high", that is, high-risk and high-yield emerging industries. In this industry, factors of production such as science and technology, human capital and knowledge are more important than traditional factors of production such as capital and land. Small and medium-sized enterprises, with small investment, rapid transformation and low switching cost, can weaken the investment risk of enterprises in emerging industries and benefit the development of enterprises.

2. Establish multi-level financing channels.

3. Comprehensively promote the informatization process of SMEs. Informatization is the inevitable trend of global economic development. In order to adapt to the trend of the times, small and medium-sized enterprises must carry out enterprise information transformation and take the road of combining technology with management. In the process of information transformation, small and medium-sized enterprises should pay attention to the following aspects:

Due to the different nature of the industry to which the enterprise belongs, the content of its informatization should also be different. This requires the informatization of enterprises to be implemented in different industries.

Enterprise informatization must be combined with enterprise management innovation and process reengineering, and follow the principle of "overall planning, phased implementation, phased implementation and gradual optimization".

Small and medium-sized enterprises can rent a powerful high-bandwidth network provided by Internet platform providers to connect with the backbone network, or they can join the Internet, make a joint home page on the Internet, and store the information of each enterprise, thus reducing the related network expenses and network maintenance personnel and reducing the production cost.

Leaders of small and medium-sized enterprises should attach great importance to the informatization process of enterprises, set up special information departments within enterprises, designate leaders to be responsible, and vigorously cultivate professional and technical personnel with informatization knowledge and ability to use informatization technology.

4. Establish a scientific and effective incentive mechanism. Small and medium-sized enterprises, especially family enterprises, have some difficulties in attracting, retaining and cultivating talents due to their own institutional restrictions. Therefore, it is necessary for small and medium-sized enterprises to comprehensively reform the internal personnel incentive system in order to improve the quality of personnel, stimulate the enthusiasm and creativity of employees, and then improve the management level of enterprises, so as to achieve the purpose of rational flow of talents within enterprises. The main measures are:

Strive to realize the transformation from traditional personnel management to human resource development and management. Transforming the personnel department from a consumer affairs department to an investment strategy department means transforming the traditional business function into human resource development and management, attaching importance to people-oriented management and human resource development, realizing the unity of values of employees and enterprises, and establishing pressure mechanism, competition mechanism and elimination mechanism.

Establish a scientific and reasonable incentive mechanism. We should pay attention to the combination of material incentives and spiritual incentives, and realize a multi-level, multi-content and multi-way combination incentive model. In order to meet the individual needs of employees, it is necessary to establish different incentive systems, including target incentive, example incentive, training incentive and so on. And strengthen the comprehensive application of positive and negative incentives.

External compensation should adhere to the combination of short-term incentives and long-term incentives. According to different positions and job nature, different salary systems are implemented, such as post salary system, structural salary system, salary point salary system and annual salary system, and employee stock ownership and stock option plan are implemented.

Establish an assessment system with performance assessment as the core. In line with the principle of comprehensively examining employees' values, work performance, work attitude, business skills and work ability, we will change the phenomenon of emphasizing qualitative, quantitative, experience impression, scientific prediction, historical performance and development potential.

5. Establish scientific and advanced management mode and production mode. Technological modernization must be accompanied by corresponding management modernization, otherwise it will be very difficult to popularize high and new technologies. To realize management modernization, we should not only make profound changes in ideas, management system, organization and human resources development, but also learn new ideas and methods of modern management. We should not only introduce and absorb foreign advanced management methods and means, but also inherit the good experience of traditional management in China, and combine introduction, inheritance and innovation to create a modern production management model with China characteristics. New concepts and methods of modern production management, such as industrial engineering (IE), concurrent engineering (CE), lean production (LP), agile manufacturing (AM), etc. Advanced production management modes such as manufacturing resource planning (MRPⅱII II), just-in-time production mode (JIT) and computer integrated manufacturing system (CIMS). Small and medium-sized enterprises should give full play to their unique flexibility and variability, abandon the traditional and backward management mode of state-owned enterprises, and create their own management mode on the basis of fully absorbing excellent management experience and combining their own reality.