Doing Business in China

The global recession have forced many small and medium enterprises close.In a interview,three experts discussed how small and medium businesses break through the recession.

First,small and medium enterprises should have long-term vision.
1.The recession would last for a long time.Small and medium enterprises should take a serious look at this crisis.We should consider our today,tomorrow,and future.We need long preparations.Although China's GDP is only 1/8 of the U.S.,and 1/4 of Japan,the recession had a great impact on Chinese small and medium enterprises,because 70% products were exported.

2. The enterprises should change themselves to adapt the changing business environment.The survival of enterprises mainly rely on the customers.What can your customers benefit from your products and services,that is the fundamental problem.

3.In the turbulent environment,enterprises will have to re-examine the relationships,between the employees and the enterprises,between the investors and the enterprises,and the staffs' relationships.Nowadays,employees are not the master of company,and the investors should not treat the enterprise as something of their own.

Sencond,no overproduction.This recession is a recession of overproduction.There is a significant decline of abroad orders,to face the problem,China's SMEs should have the three countermeasures.

1.Produce for the orders.Enterprises can't store products.
2.Don't make supply chain market a fighting game,let it create value.
3.More attention should be paid to the front line staff,everyone of them is the enterprises's creator.

Recently,I went to Zhejiang province and found that some small companiess live very nourishing.The crisises also is the opportunities for small and medium entrerprises.

For example,I met such a company.Their sales was 330 million yuan last year,so far,their sales have reached 660 million yuan this year.

Before the financial crisis,the company has a Jewish parter,after the outbreak of financial crisis,the Jewish directly attended the comany as the executive to help the company expand their global market.The company got tens of millions dollars orders one year.

When the crisis comes,the brand is particularly important,it help re-integrate the company's resources.

Third,SMEs will have to upgrade services,improve product quality.

In the united states,small and medium enterprises,in particular the businesses below the scale of 100 million U.S. dollars.The impact of the recession is greatest because of their own limited resources and talents.

At present,small and medium enterprises in the U.S. face three chanllenges:Firt,how to change and hwo to manage better.Second,how to formulate a new strategy.Third,how to improve the dedicated degree of staff,how to motivate our employees to enable their sense of responsibility and their sense of ownership.

The problem China's small and medium enterprises face is not the same as the Uninted States.Chinese labor is relatively cheaper,Chinse enterprises have rapid reaction capability.China enterprises management is not so complicated as the United States.

Chinese government made great support for the small and medium enterprises, SMEs can make use of policy breakthroughs. At the same time, China's managers gave me the impression that they are more intelligent, more young, and they expect fast growth and development. Therefore, if Chinese enterprises to upgrade their services to the world level, to maintain product quality, staff can actively participate in the development of regulations, China's small and medium enterprises will be better to go further.