On The Development Of Small And Medium-Sized Enterprises Clusters

Small and medium-sized enterprises are significant to economic development in China. In contrast with the large ones, the small and medium-sized enterprises, however, have the disadvantages of small size capital, weak technology, diseconomies of scale, and weak competitiveness. Seller-oriented market has given way to buyer-oriented one in China now. Encountering the surplus pressure, the small and medium-sized enterprises lack cooperation and specialization, and strive in a worsening environment. One of effective outlets to this situation is to encourage clusters development. The strategy can bring external economics effects, professional cooperation, and lower transaction costs. Moreover, market transaction is likely to retain the independence of enterprises. As an important industrial organization, the strategy of encouraging small and medium-sized enterprises clusters is, therefore, indispensable for regional economic development. Being a dynamically evolutionary network and system, it, however, embodies varieties of potential risks, especially the market risk of simple structure, just like a saying goes 'the prosperity of one profession leads others, but the failure of one trade dooms others.' A once successful enterprise cluster is likely to degenerate into tomorrow 'problematic spots. ' In the paper, the author seeks to concentrate on how to enhance the sustainable and healthy development of small and medium-sized enterprises clusters, which is the theoretical proposition and practical issues with extensive concern.The author adopts qualitative methodology with the complement of quantitative one, and makes normative study as well as empirical analysis. The paper and its research direction comes from current desiderative economic problems, and brings some initiative ideas. The paper begins with interpreting the definition of small and medium-sized enterprises clusters, synthesize discussions and datum concerned at home and abroad , and point out the basic characteristics of small and medium-sized enterprisesclusters,i.e. small and medium-sized enterprises in a cluster form a relationship of both rivaling and cooperating , congregate in a special region, and share the advantage of external economy. In the following chapter, the author continues to analyze their establishing principles and three evolving models: development model, transforming model, and decaying model. Further, the paper expounds the advantages of small and medium-sized enterprises clusters, i. e. easier financing access, organization innovation, lower product cost, and higher promotion efficiency. Then it unveils the factors that influence the development of small and medium-sized enterprises clusters form different perspectives, i.e. the close characteristic of family businesses, fragility of intermediaries , scarcity of industrialization amassing mechanism, and low level over-due competition arising from asymmetry of production information. Finally it puts forward the solutions to encourage the development of small and medium-sized enterprises clusters.This thesis embodies the following five sections:1. Definitions of small and medium-sized enterprises clusters.2. The establishing principles and evolution of small and medium-sized enterprises clusters.3. The competitive advantages brought about by small and medium-sized enterprises clusters.4. The factors influencing the development of small and medium-sized enterprises clusters.5. The solutions to encourage the development of small and medium-sized enterprises clusters.