Fire Control Investment In SMEs And Economical Benefit Analysis

Chongqing is the only municipality and an important regional financial centre inwestern China. Driven by the policy of ’Large-scale Development of Western China’ andthe ’Comprehensive National Urban and Rural Reform’, an increasing number ofenterprises invested and established factories in Chongqing. The local economy ofChongqing is thriving. However along with the economic growth large conflagrationsoccurred frequently. The situation of Chongqing’s fire control is grim. The safety ofpeople’s life and property, as well as the stably development of social economy areseriously threatened by fire hazards.The government of Chongqing implemented the fire control managementmechanism of ’Government unified leading, Industry units holding responsibility,Masses largely involved, Fire control department supervising’. Enterprises are the maincharacters in Chongqing’s fire control management. However being lack of financialresources and management experiences at their initial stage of business development,the spending and configuration in fire control of some small/medium enterprises areinadequate and unreasonable, which lead to extremely high risk fire hazards. Thereforethe research in SMEs’ fire control spending and its efficiency is vitally important to boththe cost reduction of enterprises and the strenthing of fire control capacity of the wholesociety.This article begins with the fire occurrance in China and the development of SMEsas the overall research, figures out that enterprises are the main characters of the brokeout of fires; emphasises the importance of research in the fire control spending of SMEs.Generalisation is used to detailedlyanalyses the content and features of enterprises’spending in fire safety. It describes the importance of enterprises’ spending in fire safetyfrom the both perspectives of economic benefit and non-economic benefit. Quantitativeanalysis is adopted to show the cost descending of enterprises’ spending in fire controland the dependency of occurrence of fire and the scale of economy, from which theoptimal principle of enterprises’ fire safety spending is reached. It also discoveres the different fire safety factor priorities of enterprises in different industries, and points outthe inefficient fire control spending is to be the major problems existing in SMEs inChongqing. It also summarises the contents and causes of six main problems in SMEs’fire control spending, and finally discusses possible solutions from both views ofgovernment and enterprises.This article combines Fire Protection Economics into local fire control situations inChongqing and discusses the problems and solutions in local enterprises’ fire controlspending. It is valuable for government on how to effectively enhance SMEs’ firecontrol spending, minimize fire hazards of SMEs, and increase the fire control capacityof the society. It is also a guide to SMEs themselves on how to efficiently spend firecontrol fund, improve their own fire control capacity and meanwhile minimise theirunnecessary expense.