The Research Of Small And Medium Industries’ Upgrade

At present,At present, the number of SMEs in China accounted for 99.3 percent of the national total of businesses, 55.6 percent of China’s GDP, industrial added value of 74.7%, 58.9% social sales, 46.2% and 62.3% of the total export taxes are created by SMEs, at the same time, the vast majority of SMEs provide these jobs. For enterprise scale miniaturization, low industrial concentration, the industry association is poor, and low level of specialization and cooperation longstanding Chinese industry, the economic development of serious consequences. In this context, SMEs make the right strategic choices necessary to reduce costs, select the appropriate target exporting countries to enhance their research and development is a strategic choice which must be made for SMEs at this stage. The current status of the development of SMEs to analyse their development process has three main contradiction facing aspects: First, localized conflicts between regions; secondly is contradictory concept uncoordinated management; and finally their own management and technical basis between market competition and the need to improve the quality of contradictions. For long-term presence of SMEs, the macro-management of the problem has not been solved uncoordinated, the uncoordinated performance is mainly manifested in many different management departments exist, and to determine the power down in the form of the legal system. But now the problem is above the county and local governments below the provincial department in charge of SMEs, but unity is slowly and gradually establish the Small Business Administration(Hall) in its unification process, and each unit "Doron flood" the situation still exists. This situation is not conducive to a unified plan for SMEs, it will affect the SME co-ordinate the rational use of the relevant economic resources, promote the rapid development of SMEs.In this paper, for the actual detailed survey, collecting relevant information on industrial upgrading Henan two SMEs, and conducting in-depth analysis. Since the reform and opening up 30 years, rapid development of SMEs for the rapid development of Henan province’s economy generated a crucial role. In recent years, small and medium enterprises in Henan industrial upgrading some success, especially after the "Twelfth Five Year Plan" introduced, the power industry to upgrade and enhance the intensity has increased, but economic and social development of Henan also still large gap, meanwhile, is still facing a shortage of talent and capital, research and development capabilities and core competitiveness is not strong and other issues. Fast forward Henan SME industrial upgrading requires the joint efforts of the government and enterprises. The importance of SMEs in the construction industry is in favor of upgrading the external environment, increase the intensity of the transformation of traditional industries, attention to personnel training, in-depth to determine the direction of development of small and medium industrial upgrading. To the faithful implementation of the government in favor of administrative policies and practices for SME development in the province, with the new industrialization of the overall direction, enthusiasm for enterprises to solve their development process ran into a problem.According to the analysis, the majority of small and medium enterprises in Henan distributed in the traditional manufacturing industries, the development characteristics are more obvious, namely price competition, low levels of technology, value-added products is not high, and most rely mainly on low-cost competition and consumption of resources and the environment the growth, industrial level is generally low, innovation is not strong, resulting in Henan declining competitiveness of SMEs, as the phenomenon is increasing sustainable economic growth and industrial upgrading SMEs need to be more urgent. In this study, two local companies to explore ways to upgrade the development, summarized the theoretical model of SME industrial upgrading, in-depth analysis of the factors and how to improve the competitiveness of SMEs in upgrading and transformation of SMEs by the paper on the development of SMEs problems arise during the upgrade elaborate analysis, summarized the case of successful business experience, to provide a reference for the development of SMEs rationale.