Chinese small and medium-sized enterprises have an average life expectancy of 3.7 years, shorter than those in Europe, Japan and the United States due to an excessive emphasis on high growth and risk-taking, the China News Service reported Thursday, citing a report by the China National Democratic Construction Association. The average life expectancy of small and medium-sized enterprises in Europe and Japan are about 12.5 years while those in the United States are 8.2 years, the report said. Data from the association, a political party whose members are mainly entrepreneurs, also show that family businesses account for 80 percent of all small and medium-sized enterprises in China. However, data from U.S.-based management consultancy firm McKinsey & Co. Inc. show that fewer than 15 percent of family businesses in China survive after three generations, the report said.
Taking the shoemakers in Chongqing city for example, there were many local shoe brands famous in local market, now they are disappeared in the market. Weakness in core competency and blindly expansion caused some shoemaking enterprises bankrupted. Of course many shoemakers went to bankrupt during the financial crises that occurred in 2008.
In recent years Chinese government issued a series of intensive policies on financing and tax reduction to encourage the SMEs upgrading and addressing the challenges in the market. In recent two years Chongqing municipal government stipulated more than ten policies to support the growth of SMEs, and the environment for SMEs development has greatly improved in the city. CITATION http://www.chinaleather.org/eng/show.php?itemid=5805
Taking the shoemakers in Chongqing city for example, there were many local shoe brands famous in local market, now they are disappeared in the market. Weakness in core competency and blindly expansion caused some shoemaking enterprises bankrupted. Of course many shoemakers went to bankrupt during the financial crises that occurred in 2008.
In recent years Chinese government issued a series of intensive policies on financing and tax reduction to encourage the SMEs upgrading and addressing the challenges in the market. In recent two years Chongqing municipal government stipulated more than ten policies to support the growth of SMEs, and the environment for SMEs development has greatly improved in the city. CITATION http://www.chinaleather.org/eng/show.php?itemid=5805
