The Average life for small and medium enterprises is only 3.7years

Release time:2013-02-28      Source:admin      Reads:

Recently, a report that China's small and medium enterprises the average life is only 3.7 years. But they take as the basis support for China's economy, thousands and thousands of small and medium enterprises in supporting the country's economic lifeline. In the hardware enterprises (like metal labels, small buttons manufacturers) accounted for the majority of the manufacturing sector.

In the hardware business like newly hatched chicks, vitality really vulnerable, especially for young people to open a new factory. Only with several workers and several simple machines, there will have a new metal labels or metal button factory was opened. Every year batch after batch of new enterprises registered, another batch of fall, a lot of people feel a little bit of money, or mixed with a good feel to learn something! Wanted their own development, and to start a company doing business! You thought not! One person can make money, does not mean that to be able to lead a business to make money. With the growth of enterprises, entrepreneur’s ability to manage their own business is critical. This is one of the reasons why many entrepreneurs fail!

Enterprisedevelopment for their own reasons, and what factors led to the corporate short-lived it? Many in the hardware business for various reasons fall to go, and never get up again. Go down different reasons, some knockouts, some bosses own mistakes in decision making, some out of the market. During the year, materials prices skyrocketing, the cost of doing business to increase, a sharp part of business down! Enterprises in different stages of development need a different way of earnings. If not adjusted, the development bottleneck stuck, it will only suffocate.

Fatal weaknesses in the hardware business(such as metal labels, buttons, small rivets) is first expressed in the lack of core competitiveness. Core competitiveness is the innovation of technology, product or service, the vitality and the foundation. Lack of core competitiveness of enterprises is difficult to form different competition, in particular, can not withstand the blow of the storm. In the 2008 financial crisis, we are concerned about the bankruptcy or closure of large enterprises in the Pearl River Delta, in fact, countless rely on export orders in the hardware business bankruptcies reason.

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