This website uses cookies to ensure you have the best experience. Learn more

China Business Sme Essay

5259 words - 22 pages

China's market reforms and accession to the WTO has led to its economy growing rapidly, to the point where it is now the fourth largest on earth, and is expected to be in the top two within the next decade (Business Monitor International, 2006). As a result, China's SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previous practices are no longer relevant. This piece aims to examine the effect of these changes on the strategies of Chinese SMEs by first examining the role of the SME in the economy, then analysing the strengths and weaknesses of the Chinese ...view middle of the document...

This is particularly true in Asian nations, such as China, where the more developed and newly industrialised nations are seeing the rate of economic growth start to drop off, and are increasingly counting on the SMEs to maintain steady economic growth. Also, many of the 'tiger' economies of East Asia are looking to their SMEs to prevent their economies being over reliant on foreign direct investment and the activities of multinational corporations, as these factors are often outside the control of the government. However, at the same time, as the developing economies become more open to the global markets and economy, they face increased competition of foreign investment, and will often look to SMEs to help attract and channel this investment (Siu, 2005).
Separately, regardless of the state of a country's economy or its reliance on international trade and investment, research by Acs (1996) has shown that the strength of the SME sector is a major factor in economic development in its own right. This factor has been observed and analysed in China (Department of Small and Medium-sized Enterprises of State Economic & Trade Commission 1999; cited in Siu, 2005), and is reflected in the fact that SMEs in China not only dominate and help determine the strength of the Chinese economy in general, but also contribute significantly to increased levels of affluence, business activity, and employment in their respective region within China (Siu, 2005).
Indeed, such is the importance of the role of SMEs in the Chinese economy that the government passed the SME Promotion Law in 2003; which provides support, and defines the Chinese government's rationale for providing support for small and medium enterprises One major change resulting from this law is the creation of support systems and networks and enabling institutions for the small and medium enterprises at the municipal level of government (Atherton and Fairbanks, 2006). This law was the latest in a series of developments aimed to promote the role of SMEs in the Chinese economy since the turn of the century, and shows that the government appreciates the role SMEs will play in China's economy, and the implications of providing government support for these companies.
Potential Challenges and Opportunities Chinese SMEs face after WTO entry
Following entry to the WTO, the Chinese government increased the level of protection and support it provided to the private sector and SMEs; this has led to many growth opportunities for SMEs, and made the private sector the most dynamic in the Chinese economy. Indeed, WTO membership has helped increase the speed at which the Chinese government has adopted a series of reform measures aimed at changing the country from a highly-centralized planned state to a socialist market economy. This has thus given SMEs an increased role: one that is socio-political as well as economic (Anderson et al. 2003). This has led to increased opportunities due to the large number of...

Other Papers Like China Business Sme

Small Medium Enterprise Sme Essay

5316 words - 22 pages contributed to diversify economic activities and make it significant contribution to exports and trade in our country. SME is the one of businesses that need of lower capital and lower risk whereas the entrepreneur to set up their business under SMEs. However there are must be several factor that effect SMEs to ensure it will be effective. This study is focused on the productivity performance of labor force, economic growth (GDP) and inflation

Leather Goods Essay

5863 words - 24 pages , Bangladesh Furniture Industries Association, Bangladesh Electrical Association and Bangladesh Weaver association etc. 6.0 Barriers for SME Export (i) Insufficiencies Information: Problems in identifying, selecting and contracting international markets due to information insufficiencies. (i) Limited information to locate markets; (ii) Unreliable data about the international Market; (iii) Locating foreign business opportunities; (iv) inability to

Dell in China

1433 words - 6 pages -05. According to Analysys International, "The market share of international giant Dell dropped due to the weak sales power in small cities, the SME market and fierce competition The other factor that led to the erosion of Dell's market share was fierce competition from Lenovo and HP in the middle and lower end of the market. Dell entered China in 1995, and was successful in capturing the urban markets and corporate customers. The company

Case Study Finish Companies Outsourcing in China

1768 words - 8 pages emails and solving misunderstandings could be saved and the cooperation would workout better. CASE E Situation analysis In Case E the company is a big group company who is using sourcing from china for 20 years now. They sell individual party, semi-finished products for other companies. Within the last 20 years they searched throughout whole china to find trustworthy and reliable chinese business partners. For this company the quality and the

Small Medium Enterprise: Demand for Auditing

3761 words - 16 pages world. These aptitudes could be outsourced to outside bookkeepers. Studies have demonstrated that bookkeepers are equipped for giving these business and administration administrations to SMEs. There are two central point that impact SMEs to buy business exhortation from outer bookkeepers: qualities of SMEs and the characteristic of their accountant and auditor. Criticism about Small Medium Enterprise (SME) Demand for Auditing. Some

Nepheline Milling Process for Rent

957 words - 4 pages Profile. Shanghai Clirik Machinery Co., Ltd, located in Pudong New Area of Shanghai, China, is a large professional manufacturer with import & export rights Turner Asphalt ­ Milling Milling. To meet the needs of our customers and to save them time and money, Turner Asphalt offers a variety of milling capabilities. Milling is a process by which we Maize Milling Business - Startup Business Maize Milling Business. If you have knowledge

Retail Banking of Brac Bank

4712 words - 19 pages clientele are it corporate, retail or SME. 1.1 Corporate Vision Building profitable and socially responsible financial institution focused on Market and Business with Growth potential, thereby assisting BRAC and stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh”. 1.2 Corporate Mission ➢ Sustained growth in Small & Medium Enterprise sector ➢ Continuous low-cost depsit Growth with


4528 words - 19 pages promote entrepreneurship, new businesses, and flexibility of hiring workers. The cost of starting a business in China is higher and the time required to do so is longer than in developed countries, but these measures are more favorable in China than the East Asia/Pacific average; and in order to promote the hiring of more workers, China has slashed regulatory burdens associated with hiring. China's standard corporate tax rate is set at 30

Nature Of Malaysian Economic System

6025 words - 25 pages International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this

Business Management

4877 words - 20 pages SME sector in Kenya. The macro-environment consists of stakeholder groups that a firm has regular dealings with. The way these relationships develop can affect the costs, quality and overall success of a business. Although the move towards economic liberalization proposed in the late 1980s and 1990s was aimed at reducing distortions in the economy, deregulation of markets has had adverse impact on SMEs (Sessional Paper No. 2, 2005). The effects

As a New Hr Representative, You Have Been Asked to Facilitate a Session on Attribution Theory to a Group of Perspective Managers Participating in a Management Development Program. Your Manager Has...

1778 words - 8 pages year 2000. In 2003, the first generation of internet users were fresh graduates fast to get the concepts of online commerce and shopping. Major investments in China were also made by international E-commerce companies at that time; escrow systems were made for better trust in buyers and sellers. The hotel industry now face market challenges and business travellers demand more for the Web in terms of information and booking of hotels. The WWW is an

Related Essays

The Influence Of Internet Finance For Sme Financing In China

2262 words - 10 pages The Influence of Internet Finance for SME Financing in China Introduction Currently, SME (Small And Medium-size enterprises) is the foundation of promoting national economy development, constructing the subject of market economy and promoting the development of social stability in China (Wang, 2011). In recent years, the economic situation has experienced dramatic change and this huge variation stimulates financing needs of SMEs in China

Strategic Management Ideas For Your Project

1750 words - 7 pages as a business model to produce renewable energy – case wind energy Chinese Management Styles Trade and investment opportunities between Finland and China Korean Management Styles Modern Japanese Management Language as a barrier for European expatriates in Asia Which emotional knowledge can expatriates gain during their overseas assignment? Family relocation and its challenges What is the future for the Euzone? Market entry for Finnish SME from the timber industry into Russia Cross-cultural differences between Belorussia and Russia including implications for business

Mobile Banking In Brack Bank Essay

1527 words - 7 pages Republic of Bangladesh, handed over the award to BRAC Bank Limited at a ceremony held in Bangladesh-China Friendship Conference Centre. Fastest growing bank in the country for the last two years Leader in SME financing through 350 offices Biggest suit of personal banking & SME products Large ATMs (Automated Teller Machine) & POS (Point of Sales) network

Economic Contribution Of Women In Bangladesh

2603 words - 11 pages entrepreneursengaged in SME only. Large scale business had been kept outside the purview ofthe present study. In view of time and resource constraints,conducting a comprehensive study in full depth and width has not been possible. STUDYMETHODOLOGY: The studythrough extensive survey involved both quantitative survey and qualitativeresearch using Questionnaire Survey, Interviews, and Group Discussions. Inbroad sense, the