What are Small Business Owners?

SMEs refer to enterprises with relatively small staffing and operating scales, including medium-sized enterprises, small enterprises, and micro-enterprises, which are legally established within the territory of the People's Republic of China.

SMEs

SMEs refer to enterprises with relatively small staffing and operating scales, including medium-sized enterprises, small enterprises, and micro-enterprises, which are legally established within the territory of the People's Republic of China.

The division criteria for medium-sized enterprises, small enterprises, and micro-enterprises are formulated by the department in charge of comprehensive management of SME promotion work in conjunction with relevant departments of the State Council, based on indicators such as enterprise employees, operating income, and total assets, combined with industry characteristics, and submitted to the State Council for approval. ^[1]

Different countries, different stages of economic development, and different industries have different standards for defining them, and they change dynamically with economic development. Countries generally define SMEs in terms of qualitative and quantitative aspects. Qualitative indicators mainly include the organizational form, financing methods, and industry status of the enterprise, while quantitative indicators mainly include the number of employees, paid-in capital, and total assets. Wait. Quantitative indicators are more intuitive than qualitative indicators, and data selection is easy. Most countries divide by quantitative standards. For example, the US Small Business Act introduced by the US Congress in 2001 defines SMEs as not exceeding the number of employees. 500 people, the United Kingdom, the European Union and the like, while taking quantitative indicators, also take qualitative indicators as an aid.

(A) strong adaptability to market changes; flexible mechanism, can play the advantages of "small and specialized", "small and live"

Due to their small scale, SMEs have relatively limited resources such as people, finances, and materials. They are not able to manage multiple products to diversify risks, nor can they compete with large enterprises on the large-scale production of a certain product. Therefore, they often have limited manpower. , Financial and material resources are invested in small markets that are ignored by large enterprises, focusing on the operation of a small product to continuously improve product quality, improve production efficiency, in order to gain a firm foothold in market competition, and then obtain greater development. Judging from the similar successful experiences of countries around the world, by choosing a market segment that enables enterprises to give play to their advantages, they can conduct professional operations and follow the growth path of filling the gap with the small, filling the big with the small, and winning with the fine. One of the most effective ways for enterprises to survive and develop in the fierce competition. In addition, with the professional and cooperative development of social production, more and more enterprises have got rid of the "big and all" and "small and all" organizational forms. SMEs have established close cooperative relationships with large enterprises through specialized production, which not only objectively and vigorously supports and promotes the development of large enterprises, but also provides a reliable foundation for their survival and development.

(2) Extensive business scope, complete industry, multi-faceted; high cost, arduous task of improving economic benefits

Generally speaking, large-scale, single-product production can make full use of the equipment and technology advantages of huge investment, but large-scale single varieties can only meet the needs of some major aspects of social production and people's daily life. Large companies often find it difficult to meet individual needs. Therefore, in the contemporary era, people's individual consumption needs are becoming more and more prominent, and the production of consumer goods has shifted from high-volume and singularity to small-volume and diversification. Although small and medium-sized enterprises as individuals generally have the disadvantages of a single operating variety and low production capacity, as a whole, due to the large volume, many points, and wide industry and geographical distribution, they have close to the market, close to customers, and flexible mechanisms. , Quick response business advantage, so it is conducive to adapt

I. Strategic choice to obtain external economies of scale

The development of small and medium-sized SMEs generally believes that the lack of economies of scale is a significant shortcoming of SMEs compared to large enterprises. Unlike large-scale enterprises that are generated by internal division and specialized economies of scale, small and medium-sized enterprises can also gather geographical industries, that is, they can obtain economies of scale based on external divisions and specialized collaboration.

For example, in the external impression that Zhejiang's economic development is dominated by SMEs, one of its important backgrounds is based on one township, one product, one county, one product, and one city, one product, and concentrated the production and operation activities of many similar enterprises in a certain region As a result, the production costs and transaction costs of these enterprises have been continuously reduced with the expansion of the industrial scale of the entire region, and the economic benefits have been greatly improved, which effectively constituted their competitiveness in the domestic and foreign markets. It can be seen that through enterprise clustering, it can promote their cooperation with each other to save transaction costs and intermediate costs, reduce production investment, improve economic benefits, and change the disadvantage of a single SME in the competitive disadvantage due to its own scale. Utilizing the characteristics of the same products produced and operated by the enterprises in the cluster, a "regional scale economy" with industrial characteristics is formed, thereby effectively driving the local economic development.

2. Implement "small but specialized" and "small but well equipped" collaborative business strategies

On the one hand, establishing stable and close collaborative relationships with large enterprises through division of labor and specialization has become a component of large-scale, centralized production systems.This is one of the most basic ways for SMEs to survive and develop in fierce competition. Conducive to improving specialized production technology, ensuring product quality, and enabling SMEs to reduce production and operating costs and obtain economies of scale; on the other hand, the development of large enterprises is also inseparable from SMEs that provide parts production and services for them .

There are 40,000 and 62,000 small and medium-sized enterprises in the two U.S. auto companies, each of which has established various cooperative relationships with them, and 70% of parts and components in Japanese and other companies' products are also provided by SMEs. Under the conditions of a market economy in China, with the change in the mode of economic growth, domestic SMEs should abandon the "small but complete" and "small and scattered" business models, jump out of the stereotype of extensional expansion, and avoid diseconomies of scale. Become a peripheral enterprise supporting the production and operation of large enterprises, provide related supporting services for large enterprises, rely on the large-scale economic advantages of large enterprises, and gradually embark on the benign development path of supplementing the big with small, supporting with specialized and specialized, refined.

3. According to the favorable conditions of SMEs being close to customers and close to the market, adopting a "small but special" differentiated business strategy to make up for shortcomings

Small and medium-sized enterprises have small investment, small operating scale, limited production capacity, and it is not easy to meet the economies of scale requirements of large enterprises and maintain the leading position of cost level in order to obtain the initiative of competition. However, SMEs have a wide range of points and are close to customers and the market. According to the principle of "people have nothing, people have me, people are good, people are cheap, and people are cheap", they can choose small markets that are ignored by large companies for their goals. Marketing.

By highlighting unique operations and personalized marketing, we strive to meet the needs of special users in small batches, attract consumers with distinctive service or product characteristics, and occupy those market areas with small batches, strong personalities, and low-profit marketing. Have a place in the competition. In today's domestic and foreign consumer goods trade, specialization, diversification, and personalization have become the mainstream of marketing methods. Small and medium-sized enterprises can rely on their flexible and efficient operating mechanisms and significant operating characteristics to meet the needs of diverse and small-volume markets. Show advantages.

4. Actively implement technological innovation strategies and continuously enhance the competitiveness of enterprises

The so-called competitive advantage of an enterprise is ultimately determined by the value it can create for customers, but how much of this value depends on the core competence of the enterprise-technological innovation. Market competition is not so much product competition or service competition as technology competition. Because the value added through service and product quality improvement and cost reduction is limited after all, only the value brought by new products developed through technological innovation is unlimited.

In view of the traditional advantages of low-cost labor force, mainly SMEs, in the current international trade, more and more new challenges are being faced. Therefore, maintaining sustainable competitive advantages through technological innovation has become the focus of SMEs' survival and development. Specifically, small and medium-sized enterprises should proceed from the fact that their talents and funds are relatively insufficient, and adhere to market demand-oriented. On the one hand, they should actively use the scientific research and technological advantages of scientific research units and colleges and universities, and promote them by sharing research and development results. Science and technology are transformed into productivity as soon as possible; on the other hand, due to the lack of conditions and funds for the independent development of new products, small and medium-sized enterprises should pay attention to their strengths and avoid weaknesses, and focus on developing their core expertise.

For example, make full use of existing high-tech at home and abroad to transform traditional production technology, improve the technological content of products and the utilization rate of resources. In addition, the product can be improved without fundamentally changing the nature of the product. For example, changing its appearance, packaging, color, and accessories, and changing and innovating its production process, so as to reduce costs, improve quality, and enhance the competitiveness of enterprises in domestic and foreign markets.

To cultivate the core competitiveness of small and medium-sized enterprises, we must not only develop products, technologies and services with unique competitive advantages, but also must guide enterprises to a healthy development path through reasonable property rights structure and system design. Most small and medium-sized enterprises are private or family-owned. Due to the high concentration of power, the company's work is often ordered to replace the plan, and the randomness is too strong. With the expansion of the enterprise scale and the increase of management levels, the shortcomings of the property rights system are increasingly exposed come out.

Sino-US Vision Shuizi believes that in order for SMEs to grow, they must first do nothing. The "doing nothing by doing" in Lao Tzu's thought is not to do nothing, and the management succeeds. This is obviously a mistake. In Chapter 63 of the Tao Te Ching, Lao Tzu said, "Pictures are difficult to make, and they are bigger than their details; difficult things in the world must be made easy, and big things in the world must be made detailed." We must concentrate our strengths, starting from easy things, doing small things, doing something and not doing something. "The dialectical view of doing nothing is especially applicable to China, especially small and medium-sized enterprises.

Do nothing-do something.

The resources of SMEs are not as good as those of large enterprises. They can only concentrate on one point and engage in specialized and specialized production. At a certain point, it is possible to form a comparative advantage. This is to do something, not to do something. If SMEs ignore their own conditions, see what they can do to make money in the market, and do blind business in diversification, they will most likely fall into a quagmire that cannot be extricated.

Do nothing-don't do more.

Small and medium-sized enterprises are not as convenient and fast as large enterprises in obtaining information. At this time, small and medium-sized enterprises prefer to watch and wait quietly, and never act blindly when the situation is unknown, doing a lot of useless work, wasting their precious resources, but the final effect is The counterproductive.

Do nothing-don't do anything.

Small and medium-sized enterprises should think carefully about their words and deeds, whether it is management rules and regulations or implementing the corporate culture, they must pay attention to the small and refined, and be concise, accurate and effective. Don't commit "big enterprise disease" or you will lose your "small" advantage.

In the final analysis, small and medium-sized enterprises must establish their own brands. The problem lies with the boss. The boss's consciousness has changed, and the business will change!

1. Make up for what is missing

Small and medium-sized enterprises can play a unique role in meeting the small or special needs of customers for certain products.

2. Employment Cistern

Small and medium-sized enterprises have less stringent requirements on labor skills and quality than large enterprises, so they can absorb a large amount of labor.

3. Promoting effect on technological innovation

The pressure of competition has prompted small and medium-sized enterprises to develop competitive products and occupy various market gaps, thereby making many small and medium-sized enterprises an important source of new technology development.

The rapid development of information technology has changed China's traditional economic structure and social order. The company is not in the past material economic environment, but is taking the network as the medium and the customer as the center. The company's organizational structure, technology research and development, manufacturing, marketing, Information economy environment closely related to after-sales service. The change of information-driven management has an all-round impact on the growth of the company. It will completely change the original business ideas, methods, and business models of the company. Through business model innovation, product technology innovation, or increased investment in various resources, the use of information technology To provide powerful methods and means to achieve this, the key to its success is the organic combination of different growth stages of enterprises and information tools. The information products provided by traditional software vendors and the accompanying related services only limit the product range of the vendors themselves, thus forming delivery activities for the sale of certain product transactions, ignoring the diverse needs of customers for this organic combination, and New requirements that are constantly emerging along with business development have caused problems such as phase cooperation, product updates, repeated maintenance, and frequent support among customers in the domestic ERP software industry.

The growth path of the company will continue to expand with the expansion of the organization's size, business model, and market environment. As a result, the requirements for information management will evolve from partial to overall, from headquarters to the grassroots, and from simple to complex. To continuously optimize, upgrade, expand and promote to complete the entire informatization construction, it reflects the changes in the characteristics of enterprise information management from narrow to wide, shallow to deep, and simple to complex. ERP software systems are playing an increasingly important role in promoting changes in corporate management, improving performance management, and enhancing core competitiveness of enterprises. Facing the needs of information technology innovation in the Internet era and the growth path of Chinese enterprises, the B / S model The application expansion of the C / S mode enables different people to access and operate common data based on different access methods of the IE browser in different locations, greatly reducing the cost of system maintenance and upgrade for remote users, creating a "timely and convenient + accurate" The effect of security + low cost is exactly the focus of Aerospace Information Software Technology Co., Ltd. to provide information management solutions for enterprises.

Timely and convenient for SMEs

Network information technology has improved customer management to a higher level. Regardless of end customers, branches, or remote collaborative offices, you can use the Internet's fast and direct dialogue in the "Tax-aware ERP" system of Hangxin software and timely Solve the customer's business problems and increase the company's own core competitiveness. The online system gives customers support anytime and anywhere. From teaching Aisino ERP to using life-long hands-on services, customers can experience the convenience of the service firsthand, and ultimately enhance the relationship between enterprises and software vendors. Reach consensus on long-term cooperation.

Accurate and safe for SMEs

Network data transmission needs to be precise and accurate, and involves internal data concealment and security. The information system security provided by software vendors has high-level protection measures, high-precision identity verification and user identification functions. "The system can obtain the responsibilities information corresponding to different functional permissions and data permissions, or obtain different authorizations for human-computer dialogue according to different user identities ... These are the deep expectations of Internet application systems, and they are more popular with customers Green.

Low cost for SMEs

Many enterprises' high-cost daily applications and localization services have always been a problem that plagued everyone. Due to improper operations in ERP systems, or unfamiliar with upgraded ERP products, technical support personnel often need to come to the door to solve this problem. Every year a certain service fee is paid. TravelSky's "Tax-aware ERP" remote control and operation access through online systems is very low-cost. Enterprise remote staff and software vendor customer service personnel can perform real-time network operations and solve problems, highlighting TravelSky's network ERP products. Cost-effective advantages.