A Study Of Obstacles In The Growth Process Of Small And Middle-sized Enterprises

The Small and middle-sized enterprises have played an important role in Chineseeconomy and society. They have accounted for more than95%of the total number ofenterprises, and approximately contributed to60%of GDP, and50%of the revenue and80%of urban employment in China.This paper, hence, explores this question by the theoretical perspectives of life cycletheory, resource-based view, positioning theory, and capability theory. It focuses on thereal situations of small and middle-sized enterprises in China and discusses it through acombination of theoretical and practical perspectives, and a summary of previous surveysand studies, in addition to my personal interview of entrepreneurs of some small andmiddle-sized enterprises. Thereby, this paper has finally addressed the obstacles in thegrowth process of small and middle-sized enterprises in China as the lack of capital, a highturnover rate of staff, a lack of strategy, and the lack of entrepreneurial capability,teamwork building, and organization design. Based on this discussion, this paper henceoffers some suggestion from the both sides of external environment and internalmanagement. As for the macro environment, it suggests that the government should builda small-and-middle-sized-enterprises friendly environment with a lower tax and feweradministrative procedures, and offer various services to the small and middle-sizedenterprises. As for the enterprises, it suggests that the entrepreneurs should learn andbuild their capabilities, and the small and middle-sized enterprises should highlight theteamwork building, the corporate and business strategy, organization design andmanagement system building.Based on the real situation of small and middle–sized enterprises in China, this paperhas offered some practical suggestions to both entrepreneurs and the policy makers. Itsheds lights on the question of how to enhance the small and middle-sized enterprises inChina.