Opportunities and challenges facing China's small businesses

Small business: refers to the labor force, means of labor or object of labor in the enterprise in a low degree of concentration, or production and transaction quantities of small-scale enterprises.

Economies of scale:Austin Robinson used the theory of economies of scale to explain the importance of the economy of scale. Robinson used the theory of economies of scale to explain the existence of (in)small businesses, he argued that there is a limit to the incremental returns to scale, beyond which there will be diminishing returns to scale.

Small business management:refers to the process of activities in which the manager of a small business, according to the characteristics of the small business itself, uses certain functional means to coordinate the activities of the members of the organization, so that they work with the manager to achieve the development goals of the small business in an efficient manner.

Entrepreneurial opportunity: refers to the conditions of the market economy, in the process of social and economic activities in the formation and production of a conducive to the success of the business operation of the factors, it is a kind of contingent and can be recognized by the operator and the use of the opportunity.

Market research: is a scientific method to understand the market development and change of activities. It is through the systematic collection, recording, organizing and analyzing information about the supply and demand of the target market, to master the potential market and the apparent market intelligence and data.

Agent Franchise:It means that the franchising agent is authorized by the franchisor to recruit franchisees for the franchisor.

Franchise: refers to the franchisor will own the trademark, name, products, patents and proprietary technology, business model in the form of a contract granted to the franchisee. Franchisee according to the provisions of the contract, in the franchisee unified business model to engage in business activities, and pay the corresponding fees to the franchise.

Partnership: a for-profit organization in which two or more partners enter into a partnership agreement, *** together, *** enjoy the benefits, *** share the risks, and bear unlimited joint and several liability for the debts of the partnership.

Strategic alliance: refers to the two or more enterprises in order to realize the resources *** enjoy, risk or cost *** share, complement each other and other specific strategic objectives, while maintaining independence, through the equity participation or contractual linkage to establish a more solid partnership, and in some areas of collaborative action, so as to achieve a "win-win" effect of the form of cooperation.

Group entrepreneurial team: its establishment mainly from the experience, friendship and *** the same interest in the relationship between partners, through the partnership with each other in the discovery of business opportunities.

Business plan: a detailed plan prepared by an entrepreneur or a company in order to realize the future growth strategy, mainly used to explain the company's future development strategy and implementation plan to investors and venture capitalists, so as to obtain the support of the investors or venture capitalists, a business plan report, and at the same time, it is also to show that they have the ability to realize the strategy and to bring returns to the investor, and the strength of their own resources, a business plan. The report.

Project feasibility report: through the technical analysis of the project itself, and for the project to assess the economic benefits brought about by the truth, this analysis is the feasibility of the project report.

Target marketing: refers to the enterprise to have similar statistical characteristics, the same hobbies and needs of a particular group of consumers to provide a group or a specific product marketing activities.

Target market: refers to the market segmentation, was selected by the enterprise, ready to meet consumer demand with the corresponding products or services to one or several market segments.

The niche market: refers to such a market segment: the market gap - the market is ignored by other enterprises, or the existence of the market has not been satisfied demand, marketing activities in the market is expected to bring objective economic benefits for the enterprise and to establish the enterprise's competitive advantage.

Market Segmentation:A small business divides the entire market into several sub-markets based on differences in buyer characteristics (such as human statistics, geographic factors, psychological factors, behavioral factors, etc.), and then operates in one or more of these sub-markets as a target market in order to gain a competitive advantage.

Competitive Advantage:Competitive Advantage in the narrow sense refers only to the market advantage; Competitive Advantage in the broad sense is the core competitiveness of the small business as a whole, in addition to the market advantage, but also includes the operation, management, human resources, corporate culture, customer service, and other aspects of the advantages, as well as the small business of the organizational innovation, business innovation, technological innovation, cultural innovation, and other innovation capabilities related to the advantage.

Small business strategy: refers to the small business in the socialist market economy, focusing on the future survival and development, according to the current and future external environment, internal conditions and the availability of resources, in order to achieve the survival of the enterprise and the long-term healthy and sustainable development, to achieve the development goals of the enterprise the ways and means of the overall planning and a series of measures.

Small business mode: refers to the small business in a variety of analysis on the basis of the choice of its own development goals can be achieved in the planning and operation of the form.

Commercial credit: This is when a supplier (seller) sells goods to a purchasing company, and the buyer opens an accounts payable account to record the amount due, and then pays after a certain period of time.

Customer Satisfaction:It is the state of feeling of pleasure or disappointment that a person develops by comparing the perceived effect (or result) of a product value in use with his previous expectations.

Network marketing: refers to the modern information technology, network technology and multimedia interactive technology, so that enterprises in the creation and provision of customer value, to obtain in the traditional marketing does not have some of the unique advantages of electronic marketing. (Informatization, automation, intelligence as the main characteristics)

Supply chain management: is the application of systematic methods, from the supply of raw materials, to the factory manufacturing, to the material storage and transportation, and then to the product distribution and customer service of the entire flow of information, logistics, service flow and capital flow integration (integration) of the management process.

Organizational innovation: in order to adapt to the requirements of technological innovation and management innovation, enterprises to achieve a reasonable allocation of production factors within the enterprise, the formation of new tasks to implement **** the same body, so as to the form of enterprise organization, organizational structure, organizational scale, organizational processes for the restructuring of the behavior of the general term.

Management innovation:It refers to the innovative activities or processes carried out in order to more effectively use the internal and external resources of the enterprise in order to achieve the enterprise's goals; or rather, it is the innovative process from proposing or adopting a new management idea to putting it into practice and obtaining the expected benefits.

Product innovation: the process by which an enterprise offers a new product to the market for the first time with some changes in technology.

Human Resource Management:It is a kind of management behavior of enterprises to improve labor productivity through a series of means such as job analysis, human resource planning, employee recruitment and selection, performance appraisal, salary management, employee motivation, talent training and development, etc., and ultimately to achieve the development goals of the enterprise.

Tax saving: also known as tax planning, refers to the taxpayer through legal means to tax optimization for the purpose of tax decisions made in the tax decision.

Market exit:It is the process of temporarily or permanently withdrawing from a region or industry and ending market activities in order to implement a certain market strategy.

Crisis:is a large event with uncertainty that causes potential negative impacts, this event and its consequences can cause significant damage to the organization and its employees, products, services, assets and reputation.

Basic characteristics of small enterprises:1. large number of enterprises, wide distribution; 2. flexible system, lean organization; 3. relatively low level of management; 4. small output scale, weak competitiveness; 5. strong family color.

Market gap theory:It is the famous Japanese business scientist, Mr. Ichiro Nagashima, who believes that in the modern market, there is always a blind spot in the market. (C) small business production and management activities should be centered on "looking for market gaps" and the development of new products as the core of the implementation of the market gap strategy. In essence, the market gap is a kind of enterprise to develop the market personality strategy, is a kind of enterprise management and development strategy that can fully reflect the characteristics of the (medium) small enterprises.

Entrepreneurial motives: 1. maximize their own value, to obtain the satisfaction of success; 2. to strive for higher profits, improve the living conditions; 3. own their own business, can be independent, according to their own wishes; 4. to strive for a greater degree of freedom and flexible working hours.

The way to resist and resolve the risk of entrepreneurial enterprises: 1. diversification of the main body of investment; 2. reduce the scale of venture capital; 3. cooperative research strategy; 4. improve the management level of the enterprise; 5. enhance the strength of the enterprise.

The advantages and disadvantages of purchasing an existing enterprise: Advantages/1. No need to carry out pre-creation market research and feasibility studies, but also eliminates the cumbersome registration, low start-up costs; 2. If the purchased enterprise has a good corporate image and business performance, it will provide a solid foundation for the continued operation of the enterprise; 3. Reduces the occurrence of a lot of uncertainty; 4. Some ready-made Some ready-made resources can be utilized; 5. If the acquired enterprise has gone bankrupt or near bankruptcy, it can also enjoy the corresponding preferential policies of the state. Disadvantages / 1. If the original enterprise in the consumer image is poor, then it is difficult to reverse this unfavorable situation in a short period of time; 2. The original enterprise's inventory of products need to be dealt with, there may be liabilities, overdue receipts or doubtful debts, plant and equipment aging, etc.; 3. It is difficult to change the culture of the original enterprise, the original staff resettlement is more troublesome; if the original enterprise is less effective, creditworthiness is poor, it will increase the difficulty of the loan.

Family business management principles: 1. clear family members of the shareholding status; 2. the establishment of a reasonable board of directors decision-making system; 3. the hiring of specialized management team; 4. the gradual democratization of decision-making.

The reasons for the split of the entrepreneurial team: 1. With the growth of the enterprise scale, some members of the ability has not been adapted to a larger scale, more standardized business management needs; 2. Entrepreneurial team members of the business philosophy and way of inconsistency, the team did not unify the ideas, some members do not recognize the company's goals and strategies of the value of the conflict, resulting in the dissolution of the entrepreneurial team; 3. Character personality interests do not match, resulting in integration problems, entrepreneurial activities are difficult to carry out normally, the entrepreneurial team dissolved; 4. The team in the early stages of the creation of the team did not determine a clear profit-sharing program, along with the development of the enterprise, the increase in profits, disputes in the distribution of profits, resulting in the dissolution of the entrepreneurial team.

The basic characteristics of the strategic alliance: 1. the alliance parties generally have a certain aspect of the enterprise's comparative advantage, there can be mutual use; 2. the alliance parties have their own development strategy, cooperation is to achieve their own interests and the strategic objectives of the consortium; 3. the alliance parties are subject to the contract of the agreement of the business behavior of the constraints of the agreement, outside of which all have an independent and equal legal personality; 4. the duration of the alliance is generally longer. The duration of the alliance is generally longer, depending on the development needs of the alliance parties; 5. The alliance parties are in pursuit of joint synergistic effect, to obtain the expected economic benefits.

The significance of the preparation of the business plan: 1. From the market analysis process, you can more clearly determine the target market of the enterprise, while better positioning of their products in the market; 2. Through the assessment of the enterprise's production operations, you can more comprehensive understanding of the enterprise's entire production process of all aspects of the production process, the entire production process of the production process of the labor force distribution, production progress, etc.; 3. By analyzing the financial situation of the enterprise, you can clearly understand the enterprise's cash flow balance of assets and liabilities, and can find a good way to effectively control the financial; 4. In the writing of the enterprise's long-term plan, you can be more clear about the enterprise's long-term, medium-term and near-term stages of the specific objectives, to determine the enterprise's specific objectives at various stages to determine the enterprise's various stages of the different programs As well as the means to achieve these goals should be taken; 5. In the development of the exit plan, you can fully understand the future development trend of society and people's consumption dynamics, and to achieve the appropriate response. In the future market changes can be adjusted to the direction of production, thus ensuring the healthy development of enterprises.

Business plan preparation: 1. business plan writer; 2. business plan format; 3. business plan preparation steps (information collection and segmentation, design a master schedule, create an action calendar, development and writing business plan, review and feedback); 4. business plan improvement and update.

Types of competitive advantage of small business: 1. small business of the external market competitive advantage: refers to the small business and the external market compared to the competitive advantage, including A product or service cost advantage/price advantage B product or service quality advantage C product differentiation D customer service advantage E affinity advantage; 2. small business of the internal system of competitive advantage: refers to the internal system of the small business in addition to market The internal system of the small business has a comparative advantage that others can not reach, including A small business management advantages B capital mobilization and management advantages C human resources advantages D and a variety of innovative capabilities related to the innovation advantages of the small business.

STP strategy of target marketing: steps 1. market segmentation: find segmentation variables to segment the market, describe the outline of the market segment; 2. target market selection: assess the attractiveness of the market segment, select the target market; 3. market positioning: determine the competitive position of the small business and its offerings to the target market.

Small businesses in the content of the industry's competitive structure: the competition in the market is mainly the competition between enterprises in the industry, an industry competition, far more than just between the original competitors, but there are five basic competitive forces, the intensity of competition in the industry depends on the interaction between these five basic forces. These five basic forces are the competition of enterprises in the industry the threat of potential entrants the bargaining power of suppliers the bargaining power of buyers and the threat of substitute products.

Small business philosophy: small business philosophy refers to the development process of small business operations, reflecting the basic values of spiritual beliefs or behavioral guidelines for action concept. Specifically, mainly through the enterprise's basic principles and basic policies to reflect. The main contents of the basic principles of small enterprises generally include the basic standards of business implementation, the basic behavioral norms of daily business activities and behavioral standards. The basic policies of a small business refer to the specific code of conduct that puts the basic principles of the enterprise into practice. Each small business is located in different economic environments, different products or services, operators and employees of different qualities of experience, business philosophy is also different, and is constantly evolving.

Reflecting several aspects of the ability of small business operators: 1. efforts to contribute to the realization of business objectives; 2. as far as possible to meet the requirements of the members; 3. efforts to make the enterprise's values or motives personalized; 4. as a representative of the enterprise, to reflect the wishes of the members of the enterprise; 5. business operators are both the leader and the sustainer of the enterprise's activities.

Relationship between balance sheet, income statement and cash flow statement: Balance sheet, income statement and cash flow statement are the main financial statements, which should be prepared by any enterprise, there are both links and differences between these three:1) Differences between the main financial statements:A. Balance sheet is a static statement, while the income statement and the cash flow statement are dynamic statements.B. Balance sheet reflects the enterprise's performance in a certain period of time, while the income statement and the cash flow statement are dynamic statements. The balance sheet reflects the financial position of an enterprise at a particular point in time, while the income statement reflects the operating results of an enterprise in a particular period, and the cash flow statement reflects the cash inflows and outflows of an enterprise in a certain period of time, reflecting the dynamic financial position.C. The formats of the statements are different.2) The link between the main financial statements:The balance sheet, income statement and cash flow statement*** reflect the financial position, operating results and operating results of an enterprise, and the cash flow statement are the same. enterprise's financial position, results of operations and cash flow, are prepared with the same accounting books, accounting vouchers and other accounting information of an enterprise. In the preparation process, often the first preparation of the income statement and balance sheet, and then prepare a cash flow statement based on the corresponding data in the balance sheet and income statement, i.e., balance sheet ?ú cash flow statement ?ú income statement

The role of the income statement:1. can show the results of the production and operation of the enterprise; 2. is the assessment of the completion of the enterprise's plan is an important basis for the assessment of the enterprise's plans; 3. is the ability to analyze and predict the enterprise's profitability. Important information.

Principles of small business fund-raising: 1. the principle of optimal capital structure: refers to the small business in the raising of funds needed for production and development, we must fully consider the comprehensive trade-off between the cost of capital and the financing risk, in the lowest cost of capital or the maximum benefit of the premise of appropriate control of the financing of the risk. Should be based on different capital needs and financing policy, combined with a variety of channels and constraints of the degree of risk, and strive to obtain the maximum return on investment with the minimum cost of capital.2. The principle of reasonableness: refers to the mobilization of funds to the actual needs of the enterprise as a criterion, there should be a limit, rather than the more the better; should be the first to determine their own capital needs, and then to determine the amount of funds raised.

The advantages of network advertising: network advertising refers to the digital code published on the Internet as the carrier of a variety of business advertising, the advantages: accuracy and personalization; interactivity; wide coverage; traceability and rapid adjustment; lower cost.

General objectives of customer relationship management: customer relationship management is generally described as the use of modern information technology and network technology, etc., so that customer products and services and other elements of the coordinated operation and to achieve overall optimization, in order to effectively develop and enhance the value of customer resources of a kind of information technology intelligent and automated management system. Its objectives are: to enhance the core competitiveness of enterprises; to establish long-term stable customer relations, to provide customers with standardized personalized quality services; to coordinate and regulate the development of new customers and maintain the relationship with old customers; to continuously explore new demand opportunities and avoid market risks, so as to promote the enterprise to obtain stable profits.

Small business job analysis: job analysis refers to the observation and research, to determine about the tasks and nature of a job, and what type of people are needed to perform the work. The results of job analysis can provide information about the job itself, using this information to prepare a job description, divided into two parts: job description and job requirements. In the event that a company needs to recruit and bring in talent, the small business can select talent based on the job description. Job analysis of the six aspects: what is the content of the work, what kind of people to complete the work, work time, work location, the significance of the work, the person responsible for how to carry out the work.

Characteristics of service commodities: 1. intangibility, the qualities of the service and the elements of the service is often intangible, the use of services after the benefit is also difficult to be perceived by others, or to wait for a period of time to enjoy the services of the people can feel the existence of the benefit; 2. non-separability, the production process of the service and the process of consumption at the same time; 3. differentiation, the composition of the service and its level of quality often Development and change, it is difficult to define; 4. non-storability, based on the imperceptible form of the service and the production and consumption of services at the same time, so that the service is not possible to be stored like tangible products; 5. lack of ownership, in the production and consumption of services in the process does not involve any transfer of ownership.

Management innovation content: 1. According to the product flow process in the enterprise, divided into market management innovation (including market demand market research market forecasting and decision-making, etc.) R & D management innovation design management innovation production management innovation and marketing management innovation, etc.; 2. According to the division of enterprise functions, divided into planning management innovation organizational management innovation coordination management innovation and control management innovation, etc.; 3. According to the division of enterprise elements, divided into product management innovation process management innovation financial management innovation cultural management innovation and talent management innovation; 4. Between the above three, and focus on the spatial conditions of management innovation, i.e., the feasibility of management innovation to divide, this division will be divided into the management of management innovation into management thought innovation management mode innovation management method innovation management organization innovation and management system innovation.

The principle of process innovation: 1. demand-driven principle, process innovation is mainly from the loss of force within the enterprise's product (service) production and cost reduction needs, should be closely around these two needs; 2. the principle of living within the limits of the principle of correctly assessing their own ability to play to their strengths, avoiding weaknesses; to take into account the national macro-industrial and technological policy requirements, and to choose the conditions of adaptation to the resources of China's scientific and technological level and management level, and also to adapt to the needs of the country's resources and technology. Level and management level, but also can bring better economic benefits of advanced technology; 3. the principle of continuous innovation, process innovation is not a one-off thing, but the need to continue to forge ahead with continuous efforts; 4. the principle of comprehensive benefits, small enterprises in the process of innovation should pay attention to the economic benefits, but also pay attention to the social and ecological benefits, and strive for unity of the three.

China's small businesses are facing opportunities and challenges: 1. Challenges: in the short term will be faced with competition from foreign enterprises from their own internal defects and the market environment is not perfect three serious challenges. After joining the World Trade Organization, China's (medium) small enterprises can no longer as before in the domestic market to seek special protection from the government, but must face five pressures: that is, tariffs have been significantly reduced, in addition to a small number of childish industries, the Government is unlikely to take non-tariff measures to protect small and medium-sized enterprises; quota licenses within five years of the specific bidding and other non-tariff measures of protection will be completely abolished; three years of circulation in the domestic market, the right to operate and the right to import and export operations will be opened up. The right to operate and import and export business will be opened up, foreign capital to set up distribution enterprises in the number of regions and share ratio restrictions will not exist, in particular, to allow foreign enterprises to set up a distribution system in China; pure high-tech small and medium-sized enterprises will be faced with the same kind of capital- and technology-intensive enterprises in foreign countries to a strong impact; due to the same efficiency and low-cost technology can replace some of the manual labor, part of the purely labor-intensive small and medium-sized enterprises will lose the labor cost advantage, a number of quality is not up to par, and a number of small and medium-sized enterprises will lose their labor cost advantage, a number of quality is not good. Advantage, a number of quality is not on the level of sloppy management of small and medium enterprises will be eliminated. At the same time, China's local small and medium-sized enterprises also face the challenge of their own internal defects. The structural problems such as unreasonable property rights system, serious similarity of product structure, low-level duplication of construction, low technological content, low-grade products, and lack of scientific business strategy have seriously constrained the enhancement of the competitiveness of small and medium-sized enterprises. The systemic risk market risk and credit risk caused by the lack of funds for small and medium-sized enterprises production and operation of insufficient inputs, resulting in insufficient investment in technological innovation technology research and development capacity is weak, which seriously affects the development of small and medium-sized enterprises. 2. Opportunities: A. National treatment and product access, the WTO planning the principle of national treatment, the requirements of domestic and foreign-funded enterprises to give equal treatment to national treatment for the solution of the problem of equal treatment for small and medium-sized enterprises has brought important opportunities for the solution of the problem of equal treatment for small and medium-sized enterprises. B. Capital market and financial services, the government is gradually to foreign banks to liberalize the operation of the RMB business and financial retail business, for SMEs to carry out a new channel of indirect financing. C. Market opening and export environment, the principle of non-discrimination in the WTO planning requires the equal liberalization of the markets of its members, so that SMEs can go to the international market to a greater extent. D tariff reduction and production costs, conducive to the introduction of advanced production equipment for small and medium-sized enterprises to improve the level of modernization and reduce the cost of investment in fixed assets.

Entrepreneurial quality requirements: 1. the ability to continue to forge ahead and innovation of small business survival requires entrepreneurs to have the ability to continue to forge ahead and innovation, and always maintain a keen insight into new things, see the slightest thing, open-minded, whether in product production, or in the management of the method, should be the rate of often put forward new goals and new requirements, the only way to be able to in the unpredictable business sea, catch the fleeting moment of opportunity, the only way to make the best of it. Capture the fleeting opportunity to lose the enterprise to move forward. 2. strong business ability and business ability, entrepreneurs who know both economic and business and good at business, will be able to turn limited resources into unlimited resources, and even create resources. 3. full of confidence never say die spirit, only with this strong self-confidence to cope with a variety of challenges, to overcome the difficulties, and to achieve some success. 4 healthy body With a healthy body to cope with the heavy mental and physical labor.

The advantages and disadvantages of the franchise model: from the perspective of the franchisee: advantage/join a strong and reputable franchisee, investment risk is small, and can get the franchisor financial help; the franchisee can get the franchisee's systematic management training and guidance; you can enjoy the franchisee's large-scale advertising campaigns and other promotions, the use of public familiarity of the franchisee's service trademarks, product trademarks, and the use of the franchisee's services. The franchisee can enjoy various promotional activities such as large-scale advertising and publicity of the franchising enterprise, and use the service trademarks, product trademarks, ownership, patents and designs of the franchising enterprise, which is familiar to the public, and is conducive to improving competitiveness. Lack of autonomy in the mode of operation, subject to the franchisor, so that its growth is limited; must pay expensive franchise fees, profits to be agreed with the franchisor **** enjoy; must accept the unified supply price of the franchising enterprise. From the franchisor's point of view: superior/every franchise branch can be opened to collect franchise fees, but also management fees, increasing the franchisee's income; conducive to improve the visibility of the franchising enterprise in the local area; franchising can reduce the operating costs, focus on improving the level of business management; franchising can be faster, with less capital to achieve scale expansion, and there is an eventual buyback of successful opportunity to buy back successful franchised outlets. Lack of / no ownership of the franchise business, control is weakened; a franchise to allow the damage to the corporate image, will affect the reputation of the head office; operational support costs increase.

Small business organization form selection principles: 1. tax considerations, different forms of business organization applicable tax policy is different, and tax policy on the impact of the enterprise is a long-term significant, and therefore should be compared with different forms of organization of the tax rate and collection methods. 2. liability, some forms of organization can provide a certain degree of protection for owners and investors. When choosing the form of organization, we should weigh the various forms of legal and economic responsibilities conferred on the owner, to control the responsibility within the scope of its willingness to bear. 3. start-up and future capital requirements, the owner should be based on their own capital situation, the ability to finance additional investment in the ease of choosing the form of organization. 4. controllability, in the different forms of business, the owner of the enterprise's control over the enterprise is not the same, some highly centralized while some are quite decentralized, the enterprise's control over the enterprise's power is not the same, and some are not the same. The business owner has to weigh the control he is willing to give up and the help he wants to get from others.5. Management ability, the business owner has to assess his own management ability, if he is not good at management, he should choose those forms of organization that can incorporate a variety of talents into the enterprise.6. Business objectives, the business owner plans to achieve the scale and level of profitability with the form of organization of the enterprise, and with the development of enterprises, its form of organization is always the same. Development, the form of organization is always to the more complex and costly changes in the direction of the 7. continuity and property rights changes in the establishment of the business, the owners should also envisage the future of the business ownership of the conversion of the inheritance of the sale of the problem. 8. the formation of the cost of different forms of business set up costs are different, and set up the cost-benefit ratio should also be taken into account.

Small business strategy development: 1. Establishment of business philosophy, small business philosophy refers to the small business organization's business activities in accordance with the beliefs of the values and codes of conduct, etc. 2. Environmental analysis, is the basis for the development of small business strategy. Environmental analysis includes external environment analysis and internal environment analysis, the external environment is often the enterprise is not controllable factors, including national policies, laws and regulations, macroeconomic conditions, etc., the enterprise can only fully understand the information of the external environment, and according to the understanding of the information to formulate business strategies; the internal environment not only includes the enterprise's control of the people, property and other material resources, but also includes the information governance structure and corporate culture, etc. 3.Forming Alternative strategic options, enterprises in the use of a variety of appropriate methods to analyze the environment, combined with the results of the analysis and the characteristics of their own enterprises and business objectives, you can formulate several sets of business strategy to meet the requirements of the long-term development of enterprises to choose from. 4. Determine the business strategy, there are a number of alternative options, small businesses need to determine a standard, objective comparison of the various options to determine the final business strategy to be implemented. Implementation of business strategy, the implementation process, but also need to monitor and control the implementation of the situation according to the business objectives of the enterprise. 6. Evaluation of business strategy practice, after the implementation of a stage, the implementation of the effect should be evaluated to examine whether to meet the expected goals, such as meeting or exceeding the goal, it is necessary to look at the environment to see whether there is a change in the absence of change continue to implement the original strategy, if there is a change, we should continue to implement the original strategy, and to see if there is a change in the environment. Strategy, there are changes to determine whether the need to reformulate the strategy; if the expected goals have not been achieved to re-analysis of the environment, repeat the above process.

The advantages and constraints of small business innovation: Advantages of 1. Small business innovation is an industrial pioneering innovation. Small businesses are small and flexible decision-making concise and decisive rich in the spirit of innovation, easy to get involved in new areas and take the lead in adopting new ideas and effective organization and management, compared with large enterprises innovation, small business industry pioneering characteristics are particularly prominent.2. Small business innovation is more pragmatic. Small business innovation activities more close to the market and directly facing the consumer, and therefore from all aspects of all reflect the pragmatic, in the innovation of the source and mode of process results and other aspects of small and medium-sized enterprise innovation are manifested in the focus on effectiveness. And it has higher efficiency than large enterprises.3. Small business innovation has better organizational security. The flexibility of small business organizational changes for small business innovation provides institutional guarantee, but also to overcome the weakness of their own strength, focusing on limited human and material resources, efficient technological innovation, and rapidly improve competitiveness to provide the organizational system to ensure that the 4. Owner support is an important guarantee of small business innovation. Small enterprises are often owners of partnership or quasi-corporate enterprises, owners as the main operators and managers of an enterprise, is the soul of the enterprise, its way of thinking and the quality of the enterprise's business management activities have an important impact on the enterprise's innovation ability to play a great role. 5. Government support is the innovation of small enterprises to support the development of the economy of all countries, the role of small enterprises in economic development is becoming clearer and clearer understanding of the role of small enterprises in economic development. With the economic development of countries, the role of small enterprises in economic development is becoming clearer and clearer, the government and society are also more and more support and recognition of small business innovation. Constraints: 1. The constraint of poor information. Small enterprises often obtain the necessary supply and demand information through the sales department of the enterprise, but the collection of technical information and management information is not satisfactory, which largely affects the innovation of the enterprise, thus restricting the healthy and sustainable development of small and medium-sized enterprises. 2. Insufficient funds constraints: this includes not only the weak strength of the enterprise itself, limited funds for innovation, but also through the market financing is very difficult, the government support is not strong enough, etc. 3. Lack of talent constraints, due to the majority of small businesses with low wages and benefits, the lack of attraction to talent, the introduction of talent retention of talent training of talent have many difficulties. 4. poor environmental constraints: many government regulatory provisions and requirements for small businesses to bring a certain burden.

Small business operator's ability to the impact of enterprise development: the small size of the small business staff, the development of its operations in the decision-making and implementation of long-term strategy formulation are often made by the entrepreneur, that is, the operator of the small business a person or a few people to do, so the ability of the small business operator has a great impact on the development of small businesses. Professor Emeritus of Waseda University, Minoru Chedo, a famous Japanese management expert, analyzed the small business management in Japan, and the result of the analysis shows that whether the business can grow normally depends on the ability of the business operator or the work that the business operator needs to do. The competence of the business manager can be reflected in the following five aspects: 1. to try to contribute to the realization of the business goals; 2. to satisfy the demands of the members as much as possible; 3. to try to personalize the values or motives of the business; 4. to be the representative of the business, reflecting the will of the members of the business; and 5. to be the manager of the business as a leader as well as a maintainer of the business activities.

Competitive strategy of small enterprises: the competitive strategy of small enterprises should be based on the actual business situation of the enterprise, according to the condition of the external environmental factors to guide the enterprise according to the potential business opportunities for investment of resources, to obtain and maintain a competitive advantage for the survival of the enterprise and long-term development. In other words, the competitive strategy that can guide small businesses to build competitive advantage is not based on past choices, nor should it be dictated by the latest industry fad or a passing fancy. Competitive strategies for small businesses that can gain competitive advantage include low-cost strategies differentiation strategies and market segmentation strategies. 1. Low-cost strategies are aimed at making the small business the lowest-cost producer in the marketplace, so that the small business's products or services can compete with others in the marketplace on the basis of cost. (There are six types: low-cost strategy to simplify the product, low-cost strategy to improve the design, low-cost strategy to save raw materials, low-cost strategy to reduce the cost of wages, low-cost strategy to produce innovation and automation, low-cost strategy to reduce the cost of low-cost strategy to reduce administrative costs.) 2. The differentiation strategy refers to the differentiation of small businesses to the products and services that they produce or provide in order to create a differentiated advantage in the marketplace, by avoiding direct competition. From promotion to product design can be brought to product or service differentiation, including product differences in design trademark features style service outlets. The use of differentiation strategy should pay attention to the relationship between product or service differentiation and cost, the use of legal means to protect the differentiation. 3. small business segmentation strategy: refers to the buyer according to the characteristics of the (such as human statistical factors geographic factors psychological factors, behavioral factors, etc.) differences in the entire market is divided into a number of sub-markets, one or more of these sub-markets as the target market and operate in them to obtain Competition