Study Of Survival And Development Of Smes

There are different analytic angles from which to study the survival and development of the small and medium-sized enterprises (SMEs). Many Chinese scholars advance their theories about the development of SMEs from the angle of actual business management; such studies do help to guide SMEs to solve their difficulties. However, it is far from enough if we study SMEs only on the aspects of business management practices. This thesis startes from the angle of economic theory, analyzes the inner factors that influence the survival and development of SMEs, and reveals the inner principles of production management of SMEs. By analyzing on the instinctive features of production management of SMEs, it is to find out the way of survival and development of SMEs.This thesis has the following new creations:1. In the analytic methods, it does not use the thought of conservative scale economy, does not take the behavior patterns of big enterprises as the standards for SMEs, but it stands on the instinctive features of the production management of SMEs, analyzes the specific performances that SMEs take advantage of economic rules under the condition of market economy, and then reveals the inner principles of survival and development of SMEs.2. Based on the thoughts of Marx on the profit conflict between capital and labors, it points out that capital replacing labors is the key for enterprise to enlarge its scale, it demonstrates the reasons why SMEs concentrate in the labor-intensive industries.3. By analyzing the instinctive features of production management of SMEs, it points out the reason why SMEs take different strategies on production technology, equipment and business management, and its reasonability.4. By analyzing the competition powers of enterprises of different scales, it demonstrates the conditions under which SMEs form its competition advantages, and provides market placing strategy for SMEs.5. According to the reality of SMEs, it states the standards of modernization of SMEs and the way to realize.There are 6 chapters in this thesis.Chapter 1 is to analyze the development and history background of SMEs. It firstly defines the boundary of SMEs; SME is the enterprise that has smallIVproduction scale, low market share and simple management organization structure. It also introduces the successful experiences of re-build and fast development of SMEs in major Capitalistic countries, points out that the right guideline of government is key to the healthy growth of SMEs. This chapter mainly analyzes the development procedures of our county enterprises, provides that in the early stage of reform, favorable market environment and systems were the main points for promoting county enterprises to rapidly develop. It analyzes the current problems the county enterprises are facing, and the distinctive features of two categories - traditional SMEs and modern SMEs.Chapter 2 is the theoretical analysis on the survival principles of SMEs. Firstly, it summarizes the explanations on the boundary of the enterprise scales by the different theories. It points out that the reason of Capitalist enterprises beating down individual manufacturers is that the enterprises dramatically reduced its production cost by centralizing production to increase the efficiency and by using the advanced technology, rather than they reduced the transaction charges by production centralization. With the low production cost, the Capitalist enterprises increased its product competition in the market and then gradually enlarged its market shares finally they completely kicked out the individual manufacturers. The author believes that the average profit Marx defined is the boundary of production scale for the individual capital and even for the whole industry. If the investment profit is lower than the average profit, expansion of enterprise or industry would stop, and then the capital would divert its investment direction. Although the enterprise scale has the enlargement trend as production develops, it still has the bo...