Research On The Industrial Distributing Rules And Cluster Development Of Small Businesses

Two important economic phenomena show that there are some rules in the industrial distribution of small businesses, in which I am very interested. It includes first the high failing rate of the small businesses. There are many small businesses established every year in every country, among which only a small part could exist longer and even less could grow up to a big enterprise. The second is the phenomenon of "Five Types" of small businesses in China. The "Five Types" of small businesses in China are mainly distributed in the manufacture industries of high denseness of capitals, high specialty of assets and high scale of initial investment. However, the small businesses are not able to enter into the industries subject to the characters in the manufacture and technology of these industries, which determines that the "Five Types" of small businesses in our country have old technologies, bad product quality, wasted resources and serious environmental pollutions.We may know directly from the above two economic phenomena that the industrial distribution of small businesses has certain rules. The trend of high failing rate could be avoided or the harmful usage of resources and the environmental pollution could be less, provided that the small enterprise respects the industrial distribution rules in choosing the industry so much that it enters the industrial field appropriate for its existence. This article describes the research on the industrial distributing rules of small businesses based on these actual economic phenomena.The main purpose of this article is to disclose the industrial distributing rules of small businesses by certifying which types of industries are suitable for the existence of small businesses, and which types are unsuitable. Then it researches further on how the small businesses improve the competence and expand the industrial development space. The fundamental conclusion is made thereafter that the small businesses hall comply with fundamental rules in the industrial distribution and shall improve the competence and expand the existence space by cluster development.The two issues involved in this subject are just based on two economic theories (internal economies of scale and external economies of scale), therefore this article makes the symmetrical research on the internal economies of scale and external economies of scale from theoretical and practical aspects. At first it defines the industrial distributing rules of small businesses by the theory of the internal economies of scale, then it studies how the small businesses expand their existing space by establishing industrial clusters in the real life based on the theory of external economies of scale.This article tries to resolve two relevant problems. On one side it discloses the industrial distributing rules of small businesses, and explains the reasons why there are differences between the theoretical conclusion of the industrial distributing rules of small businesses and the distributing practice of small businesses on the other side, to suggest the practical methods for the small businesses to expand the industrial space. The practical distributing fields for small businesses are more extensive than the industrial fields directed by the industrial distributing rules, which is the result arising out of positive reasons and negative reasons as described in this article. The negative reasons of these differences are that the small businesses could survive in the unsuitable distributed industry due to the entering by mistake because the small businesses are ignorant to the industrial distributing rules or due to the improper marketing system of one country. However, the small businesses will fail in such industries violating the rules because these two above situations are so temporary that the marketing system will be improved or the system of selecting the superior and eliminating the interior in market will play its role. The positive reasons of these differences include that the small enterprise has implemented certain remedies to fix its own industrial defect, or has expanded its industrial space based on the industrial distributing rules of small businesses by establishing new industrial organizations or by market business system, such as joining in the division, accepting the subcontract from big businesses, establishing industrial cluster or other measurements to expand its own industrial space. Among these positive reasons, this article focuses on the relation between the industrial cluster and the industrial distributing rules of small enterprise, especially how the fundamental functions of the industrial cluster improve the competence of the small businesses and thus realize the expansion of industrial space for small businesses. The reasons of choosing the industrial cluster as the emphasis include: first is that the cluster phenomenon is so normal in the international economies that we could find the influence of the industrial cluster on the competence of small businesses in every competent economic body. Second is that the research combining the industrial distributing rules of small businesses and industrial cluster is not only helpful to disclose the developing industrial space for the small businesses but also showing the important methods for small businesses to increase the competence.Selection of this theme shows certain theoretic and practical senses. The theoretic sense includes two aspects: firstly this article deepens the previous researches on the industrial distributing rules of small businesses. Secondly this article explores the real methods for small businesses to improve the competence and expand the industrial space, which could be used to explain the reasons why the big businesses and small businesses coexist in the era of scale economy. As to the practical sense, this article is able to provide the reference for the government to establish industrial policies of small businesses. The government could also take active advantages of the knowledge of industrial distributing rules of small businesses for them to change the determining parameters in choosing industries by policy-making or other methods, so that small businesses are impelled to distribute in the industrials most appropriate for the existence, and the large amount of wasted resources due to the improper positioning of small businesses could be avoided to...