Research On China's Small-to-medium Software Enterprise Development Strategy

The software industry starts late but has achieved fast development. During the 10 years from 1999 to 2008, the industry size reached 757.3 billion Chinese yuan from 41.4 Chinese yuan, representing year-on-year growth of more than 17 times. It is rare in most of other industries in China. It's believed that in the following 5 to 10 years, the software industry would maintain a 20%-plus growth speed, indicating great development prospect.As a newly-raised industry, the software industry is a typical representative of the knowledge industry and also an industry consisting of numerous small-to-medium enterprises. The small-to-medium enterprises engaged in the software industry are facing a great development opportunity and restricted by factors like human resources, capital and technologies at the same time. Furthermore, suppressed by foreign companies and large-scaled state-owned enterprises, small-to-medium enterprises are growing rather difficultly.The paper finds the reasons small-to-medium software enterprises successfully break the bottleneck during development and gets the method for small-to-medium software enterprises to succeed through studying and researching the development course of succeeded software enterprises. The paper further gives development strategies for small-to-medium software enterprises after analyzing experience of other small-to-medium software enterprises that have get successful.First, small-to-medium software enterprises need to make clear orientation, to get their own favorable market, to focus on some special field and try to become a leader and to avoid traps existing everywhere, which is extremely important. Meanwhile, these enterprises should make technology and business model innovation continually. Second, small-to-medium software enterprises need to improve the human resource management level; to make good choice of employees, to train them, to help them play their ability and to make them be willing to work for the companies; to exercise strategic human resource management strategies; and to apply knowledge management to improve the study ability of staff, in order to reduce the management risk. Third, the characteristics of software industry decide high previous costs of software enterprises and great amount of capital. To stabilize the management and technology team and maintain technology secret and make right decisions always, small-to-medium software enterprises should consummate company administration and even invite strategic investors and the enter capital market.