Small and Medium-sized Enterprises (SMEs)

Small and medium-sized enterprises (SMEs) are an important carrier for the implementation of mass entrepreneurship and innovation, and have an irreplaceable role in increasing employment, promoting economic growth, scientific and technological innovation and social harmony and stability, and are of strategic importance to the national economy and social development. I organized a number of small and medium-sized enterprise business approach, interested pro can come to read it!

SMEs business approach

Currently, corporate mergers and acquisitions have been commonplace, more and more large enterprises, small and medium-sized enterprises in the international and domestic increasingly huge large enterprises under the squeeze seems to survive the road is more narrow, how can we find effective strategies to gain their own competitive advantage is the small and medium-sized enterprises can not afford to delay the problem.

Confidence to find an advantage

First of all, as a small and medium-sized enterprises should have an objective understanding of their own, remember the saying? God closed a door for you will certainly open a window? If the loss of confidence due to the weakness of the enterprise is difficult to focus on how to find their own strengths, many small and medium-sized enterprises have not been able to find and play their own strengths because of the lack of confidence, as long as they can do some processing or can temporarily survive as if they are already very satisfied, which is no confidence, do not dare to think about it and dare not do so, we can not talk about the development. Shanghai's Amin melon seeds from the frying pan fried melon seeds started, is now one of the leading brands of snack foods; Wuhan's Jingwu Road duck neck before just a stall, now has annual sales of several hundred million, the development of China's largest duck meat food processing enterprises? If there is no confidence, who would have thought that these inconspicuous small business can be made into such a big industry.

China's small and medium-sized enterprises (SMEs) are too worried about survival, and therefore blinded to see their own eyes. It is true that as a small and medium-sized enterprises to survive before the development of this is an inevitable premise, but not because of this concern and the loss of self-confidence, because this self-confidence is an attitude, is a determination, is the solution to the problem of the driving force, so our small and medium-sized enterprises in order to find the advantage, to gain the advantage must first establish confidence.

Use of strategy to create an advantage

The use of strategy to produce an advantage is actually ? The first thing you need to do is to use a strategy to create an advantage. Mall as a battlefield? The old saying, the use of proper tactics can be weak to win.

Concentration produces an advantage

Although the manpower and financial resources of small and medium-sized enterprises can not be the same day with large enterprises, but small and medium-sized enterprises can focus their resources at one point, to achieve a local advantage, the big brands can not be invested in the same energy and resources for each market, so small and medium-sized enterprises can still get a local advantage.

In Tongxiang, Zhejiang, a store took the bidding, the auction of daily chemical area of a year's display, publicity rights, the store according to the different display area divided into five bids, the results of a local brand to 250,000 high price to become the king of the bidding, after the bidding, the daily chemical area of the only six brands left, even if it is a big brand such as Procter & Gamble, although it is still retained in the store, however, was adjusted to a very poor display area, the sales Shrinking rapidly, and re-bidding enterprises because they are qualified to set up shoppers and corresponding display, publicity, a huge advantage, and therefore become the king of the enterprise daily sales from the original hundreds of dollars surged to about 3,000 yuan.

Relying on the advantages of geography

Many local brands are relying on the advantages of geography, from the cost of production, transportation, local enterprises have a huge advantage as a national brand, despite the financial strength, but the strong dragon is difficult to suppress the snake, and local brands may not be able to take advantage of the hard fight. C-BONS headquartered in Wuhan, has always attached great importance to Wuhan and central China's leading position in the Wuhan market in the detergent, daily use of a number of products has always maintained the first position, is relying on the advantages of geographical location, in the promotional war as long as the rival Procter & Gamble to launch an attack on the Silk Bauer can be said to give a more severe counterattacks, because the Silk Bauer production base is located next to the Wuhan, accounting for the full range of warehousing, transportation, and other cost advantages, regardless of the promotional war, how intense, and the local enterprises have a huge advantage. No matter how fierce the promotional war is, C-BONS can also have a greater advantage in Wuhan on this turf to beat any brand. And that's not to mention a whole host of other advantages due to localization policies, staff relations, and so on.

Find the opponent's blank or weak market

Most of the big brands occupy important markets, but due to limited funds and capacity, big brands can not take into account all the markets, so their focus is from the most important markets, and gradually to the development of the second and third tier markets, as small and medium-sized enterprises can be a big brand is not particularly important to the market or even a blank market as their own As a small and medium-sized enterprise, it can take the market or even the blank market as its main battlefield, avoiding the frontal battle with the big brands in the main market, and at the same time, attacking and occupying the opponent's weak links, the very Cola's main attack on the rural market and the achievement of the three-legged triangle situation with the two music is a successful example.

Transformation of disadvantages into advantages

Single product becomes professional:

Single product highlights the word "special", we only do this one product so more professional, the enterprise to do in order to adapt to their own development requirements and expand the consumer groups are bound to choose the extension of the product, multi-species or even diversified development, at this time it is just to expose the shortcomings of the enterprise, the enterprise can not possibly Single-mindedly only in a product above, at this time, small and medium-sized enterprises as far as possible to dress up as a very specialized role, we only do this kind of product, Dabao in the fierce cosmetics market can develop and grow is completely embodied in a special word, a long time Dabao only production sod honey a product, so that this kind of product to become? Specializing in cosmetics for our people? So that the market position can not be shaken. In addition, from the financial strength of the enterprise, focus on a product or service is more likely to stand firm in the market.

Roots are not stable fashion:

As a brand with a long history of honesty and trustworthiness, but will also give people the impression of aging, so small and medium-sized enterprises can be a shorter history of the brand into a fashionable, new generation of the feeling that the year Pepsi is with this trick? A new generation of choice? Only in front of Coca-Cola's foothold. We can see that most of the latecomers in the market with the new wave, fashion, because SMEs can not compete with the old big business seniority and strength, but in front of the fashion before the advantages of these old companies is not so obvious or even become a disadvantage, this time small and medium-sized enterprises will be able to compete with the big companies in a level playing field, and even because of their own history of a shorter history and seize the first opportunity.

The scale is too small for customization:

Small business production is often due to the lack of large-scale procurement, production cost advantages lead to a completely passive situation in the market. Reverse thinking, small and medium-sized enterprises if you turn to customized products, according to customer needs and flexible adjustment of the product, you can let the large enterprises scale effect advantage is gone. Large enterprises can not be in order to seize the customized market segments with small and medium-sized enterprises to launch an attack, can only be allowed to develop freely, small businesses will be in the customized market to gain an advantage, won the valuable space for survival.

Too little seniority to serve well:

Small and medium-sized enterprises often encounter such a problem? What customers have you served? Customers want to prove the ability of the enterprise, strength and credit, this time, small and medium-sized enterprises should avoid the positive answer, and from the reverse side of the explanation is precisely because there are fewer customers, so the service will be more attentive, the price will be very competitive. For example, the printing industry has a lot of small printing enterprises are very popular, the reason is that the big printing company order is particularly large, certainly to ensure that the task of large customers to complete the first, naturally, small customers will be cold, at this time, the small printing enterprises reasonable price, fast and thoughtful service of course, than the big printing company more than the ability to win the middle and small customers.

Unknown value of high profits:

Small and medium-sized enterprises to produce products have not yet been recognized by consumers so it is difficult for dealers to accept, in fact, the value of the unrecognized itself is also an advantage, I remember that a supermarket owner has said that Procter & Gamble's products he was not willing to stock, the reason for this is that the brand is too big, so give dealers a very low profit, support, settlement of the various aspects of the policy is also very harsh! Just such a brand if the supermarket does not have goods consumers will be suspicious of the supermarket, it is the customer big bully, P&G dare to rely on their own strong strength on the downstream dealers so tough. Therefore, small and medium-sized brands is the real source of supermarket profits, big brands but a facade, the price is very transparent, as if the consumer is a price reference, consumers will be based on different supermarkets between the price difference between these well-known products to determine which price is cheaper, so some supermarkets will be in the day-to-day big brands do not earn a penny or even subsidized to give consumers a? Good quality and low price? The good impression, then money can only be made by the unknown products, know the mechanics of this, small and medium-sized enterprises will be able to give businessmen more profits due to the value of the opaque, naturally turn a disadvantage into an advantage.

Skillful management to gain an advantage

Unique personality

As long as the product has a personality, there will be an advantage. Food and Herb Hall was originally a handmade cowhide products workshop, their own hand-processed cowhide wallets, purses, etc., this workshop is now in the country to open a number of chain stores, and have good sales performance, which is because of the word unique. Small workshops originally could not be compared with international and domestic brand-name leather goods, but it is because of the unique personality in the market to stand firm. First of all? Herbivore Hall? This distinctive name engraved on the wooden plaque makes people feel very different; Secondly, although the entire store is not a large place, but all carefully decorated with wood carvings and grass, shelves and furnishings are all wooden, and all the wood products through the burning and branding and other ways to deal with the very old look, the door passed by the people were attracted to stop and watch; Finally, each product is handmade and pressed with the "Food and Grass Hall". Each product is handmade and embossed with the brand name "Food and Herb Church". brand name, which is very delicate and chic, and handmade to make this? The handmade products also make this workshop more valuable. The value of the products out of the workshop is multiplied, and the price is not inferior to brand-name leather goods. Also specializing in wooden combs? Tan carpenter? Also belong to this example, to be able to obtain such a competitive advantage are only because of their unique personality.

Limit the size

and large businesses are different, small businesses increase in size does not necessarily bring any benefits to themselves, there was a small restaurant only twenty square meters, but because of the characteristics of the dish and chic environment every day from noon to night are queuing up customers, and then the owner of this business so good to see the decision to expand the size of the expansion of the one to 150 square meters, originally thought that the business would be better, but the owner of the restaurant is not a good business. Originally thought that this business will be better, the result is just the opposite, only a few sporadic customers, the results did not take long to close. The same situation in the small clothing stores, jewelry stores also occur from time to time, this is to give up their own advantages and the results caused by the small stores sometimes rely on the popularity of the scarcity of goods, it is because there are people queuing up so that more people will come to the name, but once the scale of the expansion of not only the cost of operation and management and other costs, and customers will no longer be treated as a chic store, will be compared with other large stores, large enterprises, naturally, the advantage becomes a disadvantage. Comparison, the natural advantage becomes a disadvantage, so small businesses may wish to limit the size and availability of products, in order to obtain the advantage of scarcity. If you consider the development, you can open two small stores may be more than a large store to maintain their own advantages.

Arousing curiosity

The use of people's curiosity to attract attention is an immediate method, this method even Pizza Hut such a large enterprise is also in the use of Pizza Hut just landed in the country when there is not much advertising, but still immediately attracted the attention of consumers is because as long as there is a Pizza Hut where there will be people queuing up to wait for the queue, the queue is the best advertising, even if there is no one to describe it to you, it's the best advertising. Even without anyone describing to you how delicious its pizza is, you will be curious to try it. In fact, Pizza Hut could have added more seats or opened a few more restaurants, but in order to have this kind of word-of-mouth effect and long-term development, they would rather let? God?

The same principle of Singapore's bread new language both in Beijing and the beach in Shanghai have received a strong market response, although the price is about double the price of similar baked goods is still every day? The long queue is still there every day, despite the price being double that of similar baked goods. constantly. The use of stainless steel and glass as the main structure is completely different from other bakeries; fully open kitchen each process is completed under the eyes of consumers;? A Pian? The bakery has a stainless steel and glass main structure, which is completely different from other bakeries. Banana Point? The names of the bakeries are unique and novel; and the self-service selection and other techniques make it impossible for consumers to resist the curiosity of the bakery. It's no wonder that the small business, which was established in Singapore in 2000, has been in business since 2003. Small Business?was listed in Singapore in 2003 and has now opened stores all over the world.

Small and medium-sized business characteristics

(a) medium or small production scale, and thus investment is more provincial, short construction cycle, faster results

Compared with large enterprises, one of the primary characteristics of small and medium-sized enterprises, that is, lies in the small size of the enterprise, business decision-making power is highly centralized, but all small enterprises, basically a family of independent management, so that the power of the capital pursuit of profit is fully embodied in the The motivation of the operator. As the operators are responsive to the ever-changing market, the implementation of ownership and management and governance rights can save the owner's supervision costs, but also conducive to rapid decision-making by the enterprise. Secondly, SMEs have a small number of employees, a simple organizational structure, and the contribution of individuals in the enterprise can be easily identified, thus facilitating effective incentives for employees, unlike large enterprises that are prone to laziness and inefficiency within a large hierarchical organization. It can be seen that SMEs have greater elasticity and flexibility in business decision-making and staff motivation compared with large enterprises, and are thus able to respond quickly to changing markets. As the saying goes, small enterprises are highly motivated, flexible and efficient. When some large companies and multinational enterprises in the world economic downturn had to compress the scale of production, small and medium-sized enterprises are constantly adjusting the direction of business and product structure, from which to obtain new development.

(ii) strong adaptability to changes in the market; flexible mechanisms, can play? Small and specialized?

(C) the breadth of the scope of business, the industry is complete, a wide range of points; higher costs, the task of improving economic efficiency is arduous

Generally speaking, the production of large quantities of products, monomerization in order to give full play to the advantages of the equipment and technology of the huge investment, but a large number of single varieties can only meet the demand for some of the major aspects of social production and people's daily lives, when there are certain small quantities of personalized demand, large enterprises often have to be the most important thing to do. When there are some small quantities of personalized demand, large enterprises are often difficult to meet. Therefore, in the face of people's increasingly individualized consumer demand in this era, the production of consumer goods has shifted from large-volume, single-variety to small-volume, diversified. Although small and medium-sized enterprises as individuals generally have the shortcomings of single business varieties and low production capacity, but on the whole, due to the large volume, more points, and industry and geographical distribution of a wide range of business advantages, they are close to the market, close to the customer and the mechanism of flexible, quick response, so it is conducive to adapting to the multi-color, ever-changing consumer demand; especially in the retail business field, residents of the day-to-day sporadic, A variety of consumer demand can be met through the thousands of small and medium-sized flexible service mode.

(D) small and medium-sized enterprises are the fastest-growing scientific and technological innovation force

Modern science and technology in the direction of industrial technology and equipment and product development has two aspects of the impact, on the one hand, towards large-scale, centralized direction; on the other hand, towards miniaturization, decentralized direction of development. Product miniaturization, decentralized production for the development of small and medium-sized enterprises to provide favorable conditions. Extraordinary in the new technological revolution, many founders of small and medium-sized enterprises are often large enterprises and research institutes of science and technology personnel, or university professors, they are often a set of governors, owners and inventors in one, on the new technology invention can be immediately put into practice. Because of this, since the 1970s, new technology-based small and medium-sized enterprises (SMEs) like a spring, they have achieved great success in microcomputers, information systems, semiconductor components, e-printing and new materials, etc., there are many SMEs in just a few years or more than a dozen years, rapidly growing into world-renowned companies such as Hewlett-Packard, Microsoft, Yahoo, Sony and Xerox.

(E) poor ability to withstand business risks; weak capital, poor fundraising ability

China's commercial banking system in the provision of liquidity may be the world's largest, although there are many complaints about bank loans, the allocation of loan resources always need to be resolved, while the debt portion of the proportion of the disproportionate financial risk implied to find ways to be resolved.

SME Loan Financing Hotline

Liquidity as a percentage of GDP is high

In China's economy, compared to the world situation, China is one of the highest percentage of commercial banks to provide liquidity, liquidity is also risky, such as whether the product can be sold. But in China to form such a concept, that is, liquidity can be completely dependent on the bank, China's liquidity accounted for more than 70% of GDP, some countries only about half of China, and some only 1/3 of China.

Liquidity loans are so large there are two main reasons: raw materials inventory, intermediate materials inventory is very large; enterprise's own funds, such as provident fund, retained profits, etc. were heavily Used to expand production, capital construction and other investments, resulting in working capital on a large extent dependent on the bank.

Enterprise financing is mainly divided into four categories according to the different channels: listed stock financing, bank loans, bond issuance and private lending. China's existence of a large number of small and medium-sized enterprises, most of the small and medium-sized enterprises are small production mode of production, small scale, it is difficult to meet the requirements of China's listed enterprises, so most of the small and medium-sized enterprises can not be listed to finance. The issuance of corporate bonds in China is strictly controlled, not only the issuer has high requirements for the conditions of the main body, and need to go through a strict examination and approval, at present only a few large state-owned enterprises issued corporate bonds. For SMEs, the issuance of corporate bonds is an unrealistic channel of debt financing. As a matter of fact, most SMEs prefer bank lending for financing, however, on the part of commercial banks, they are more willing to lend to large enterprises with strong strength, and many SMEs are turned away by various harsh conditions. According to incomplete statistics, the refusal rate of SME loan applications reached 56%.

For the above problem of SMEs financing difficulties, in 2012, the State Council Wen Jiabao presided over the State Council executive meeting on July 30, requiring all regions and relevant departments to take effective measures to implement the relevant policies to encourage private investment in the enterprises reflected in some areas of the industry to enter the rules, standards and conditions are still not sufficiently clear and specific issues to be studied and resolved. With the State Council's new 36 rules as a backing, financial leasing or become an important channel of financing for small and medium-sized enterprises, small and medium-sized enterprise financing to see a new dawn.

SME business strategy

First, to obtain external economies of scale as a strategic choice

Go? Small and group? The development of small and medium-sized enterprises is generally believed to lack the advantage of economies of scale is a significant shortfall in small and medium-sized enterprises compared with large enterprises. In contrast to the economies of scale generated by the internal division of labor and specialization of large enterprises, SMEs can also obtain economies of scale through geographic industrial agglomeration, i.e., based on the external division of labor and specialization of collaboration.

For example, in the outside world's impression of small and medium-sized enterprises as the leading economic development in Zhejiang, it is an important background is based on a township, a county, a product or even a city, a product, the production and management activities of many similar enterprises concentrated in a certain area, so that the production cost of these enterprises, transaction costs with the expansion of the scale of the entire region's industry and continue to reduce the economic benefits greatly, effectively constituting its domestic and international markets. Effectively constitute its competitiveness in domestic and foreign markets. It can be seen that through the enterprise clustering, not only can promote their cooperation to save transaction costs and intermediary costs, reduce production inputs, improve economic efficiency, change the single small and medium-sized enterprises due to their own size and in a competitive disadvantage of the disadvantageous position, but also can take advantage of the characteristics of the same products within the cluster of enterprises, the formation of the industrial characteristics of the? Regional economies of scale?

These are the most important factors in the development of the local economy.

Second, the implementation of? Small and specialized? and? Small and match? Collaboration business strategy

On the one hand, and large enterprises through the division of labor and specialization to establish stable and close cooperative relations, become a large-scale, centralized production system, which is one of the most basic ways for small and medium-sized enterprises in the fierce competition to obtain the survival and development of one of the most basic ways to not only help to improve the specialization of production technology, to ensure the quality of the product, but also enable small and medium-sized enterprises to reduce the cost of production and operation, to obtain economies of scale; on the other hand, the development of large enterprises to obtain the benefits of economies of scale. On the other hand, the development of large enterprises can not be separated from the production of parts and services provided by small and medium-sized enterprises.

The United States, Ford, General Motors, two automobile companies have 40,000 and 62,000 small and medium-sized enterprises, respectively, with the establishment of a variety of collaborative relationships, Japan's Matsushita, Hitachi, Toshiba and other companies in the product of 70% of the parts and components are also provided by small and medium-sized enterprises. At present, under the condition of market economy in China, with the change of economic growth mode, domestic small and medium-sized enterprises should abandon? Small and complete? and? Small and scattered? The business model, jump out of the pattern of epitaxial expansion, to avoid the scale of the economy, and strive to become a large enterprise production and operation of the periphery of the enterprise, to provide relevant supporting services for large enterprises, relying on the advantages of economies of scale of large enterprises, and gradually embarked on a small complementary to the large, specialized supporting and specialized, refined to win the healthy development of the road.

Third, according to the small and medium-sized enterprises close to customers, close to the market favorable conditions, to take? Small and special? The differentiation of the business strategy to pick up the pieces

SMEs have little input, small scale of operation, limited production capacity, not easy to achieve the same economies of scale as large enterprises to maintain the leading position of the cost level, in order to obtain the initiative to compete. But small and medium-sized points, close to customers and markets, can be based on? People have no I have, people have I excellent, people excellent I cheap, people cheap I special? The principle of selecting those who are ignored by the large enterprises in the small market for target marketing.

By highlighting the characteristics of business and personalized marketing, focusing on meeting the needs of small quantities of special users, with distinctive service or product features to attract consumers, the possession of those small quantities, strong personality, marketing and micro-benefit market areas, so as to win the fierce competition in the survival of the fittest to occupy a place. In today's domestic and international trade in consumer goods, specialization, diversification, personalization has become the mainstream of marketing, small and medium-sized enterprises can rely on its flexible and efficient business mechanism and significant business characteristics, to meet the diversified, small batch market demand in the presentation of advantages.

Fourth, actively implement the strategy of technological innovation, and constantly enhance the competitiveness of enterprises

The so-called competitive advantage of enterprises, in the final analysis, is determined by the value it can create for the customer, but the amount of this value depends on the enterprise's core competencies? Technological innovation. Market competition is not so much product competition, service competition, rather than technology competition. Because through the service and product quality improvement and cost reduction brought about by the increase in value is, after all, limited, only through the development of technological innovation of new products to bring the value is unlimited.

In view of the traditional advantage of low-cost labor in the current international trade, mainly by SMEs is facing more and more new challenges, therefore, through technological innovation to maintain a sustained competitive advantage has become the focus of SMEs to obtain the survival and development. Specifically, small and medium-sized enterprises should be from their own talents, the relative lack of funds, adhere to the market demand-oriented, on the one hand, should actively use scientific research units, universities and colleges of scientific research, technological advantages, through the *** with the sharing of the results of research and development to promote science and technology as soon as possible into productive forces; on the other hand, due to the lack of small and medium-sized enterprises to independently develop new products and funding, so pay attention to the strengths and weaknesses On the other hand, because SMEs lack the conditions and funds to develop new products on their own, they should pay attention to their strengths and avoid their weaknesses and focus on developing their core expertise.