China Business Sme

In: Business and Management

Submitted By scars
Words 5213
Pages 21
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 SMEs, and the opportunities and threats that have arisen from China's WTO membership. The piece will then examine Chinese SMEs from a strategic perspective, and the impact the the WTO membership has had on said strategies. Finally, the piece will give strategic recommendations for Chinese SMEs that wish to take advantage of the opportunities that WTO membership offers, and also for those SMEs that wish to avoid the challenges it poses.
The Role of SMEs in both the International Perspective and the Chinese Perspective
Academics have long realised that small and medium enterprises grow to become the major corporations and businesses of the future (Davis et al., 1985). As a result of this view, greater attention has been given to the role of small and medium sized enterprises (SMEs) in contributing to the economic growth of countries over the past twenty years in countries all over the world. Due to the importance of the role that SMEs play, for the last 15 years governments have urged by academics, economists and policy experts to take strong and deliberate actions to accelerate small business development (Hung and Rondinelli, 1993, p. 20). Indeed, for rapidly growing emerging…...

Similar Documents

China Business Entrey

...Economy Profile: China © 2012 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail Copies of Doing Business 2012:......

Words: 26377 - Pages: 106

China Business Environment

...keep going to improve its company. Although VW account for larger proportion market share in China market, the further development is necessary for the company. It can maintain the competitive with others. I found that VW is planning to expand the business in China market. They plan to explore area in South area and West area in China. VW will build the factory in Ningbo. The aim is to increase the influence in China market. VW targets rising the production volume to 300 thousands cars per year. It makes more profits through the mass production. Another future plan is to improve the quality of car. VW spend much money on product development. VW starts developing the new car model in order to enhance the competitive with other car makers and attract new customers. The product should improve as the wants for customers are always changing. Also, they hope to sell the environmental-friendly. They explore the skills for environment. Therefore, VW invest 17.1 billion euro in multi products. That can tackle with customer diversity. Besides, I found that VW is going to explore the renewable fuel, for example wind power and solar power. This plan may solve the problems which increases the fuel price. Last point of the future plan is to rise the sales volume. The goal is to earn 20% of its capital as profit per year. To achieve the goal, VW plans to finance 50% of the vehicles sold in China by 2018. They also desire double or triple sales volume by 2020. The maximize profit is......

Words: 491 - Pages: 2

Doing International Business in China

...Doing Business in the 21st Century with the New Generation of Chinese Managers: A Study of Generational Shifts in Work Values in China Author(s): David A. Ralston, Carolyn P. Egri, Sally Stewart, Robert H. Terpstra and Yu Kaicheng Reviewed work(s): Source: Journal of International Business Studies, Vol. 30, No. 2 (2nd Qtr., 1999), pp. 415-427 Published by: Palgrave Macmillan Journals Stable URL: . Accessed: 30/01/2013 16:57 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact . Palgrave Macmillan Journals is collaborating with JSTOR to digitize, preserve and extend access to Journal of International Business Studies. This content downloaded on Wed, 30 Jan 2013 16:57:29 PM All use subject to JSTOR Terms and Conditions Doing the A New Business Generation in the of 21st Century with Chinese Shifts Managers: in Study of Generational Work China Values in DavidA. Ralston* UNIVERSITY OF OKLAHOMA P. Carolyn......

Words: 3458 - Pages: 14

Conducting Business in China

...Conducting Business in China China’s three historic schools of thought are Confucianism, Buddhism, and Taoism. These three beliefs make up the foundation for Chinese society. Confucianism is mostly concerned with political ideas and social harmony; Taoism is concerned with the health of the human body; and Buddhism is most concerned with psychology and the nature of the mind. Each of these teachings also emphasis the opposite of its main focus. Confucianism promoted social harmony by teaching about self-cultivation; Taoism talked about health by having harmony with the natural environment; and Buddhism taught about the mind by contrasting it with the material world of things. These philosophies influence business because they are integrated into Chinese business by the way business owners interact and deal with one another. Over 80% of the people in China adhere to one of these three philosophies. In Western countries we purposely separate religious beliefs/affiliations with business dealings but in China and other eastern countries they are a necessity of it. In China, business relationships eventually become social relationships after time. This is a stark contrast to Western business relationships that aim to keep it professional at all times even after time has elapsed. In China the more you share about your persona life including family, hobbies, political views, etc., the closer you are with your business partners. In fact, sometimes the majority of business......

Words: 595 - Pages: 3

Business Environment of Sme in Bangladesh

...Introduction In a country like Bangladesh, Small and Medium sized Enterprises (SME) plays a significant role in boosting up the overall health of the economy. Their contribution towards the economy includes generation of large scale employment, investment, improvement of indigenous skill and technology, promotion of exports and opportunities for entrepreneurship and innovativeness. Bangladesh has around 27,000 medium-sized enterprises and 150,000 small-sized enterprises (defined by the government of Bangladesh as registered enterprises). Different countries and organizations define SME’s in different way. The SMEs are defined on the basis of two criteria across the world: volume of turnover and number of person employed in a particular organization. Small firms cover a wide variety of firms ranging from the single proprietor business, independent business owners who employ a handful of workers. The central bank of Bangladesh defines any business having a “Net-Worth” of up-to Tk. 10 Million or number of employees between 10 to 50 persons as small and business having a “Net-Worth” between Tk. 10 to 100 Million, or employees between 50 to 100 persons as Medium enterprises (Ahmed at al, 2011) 1. The Government of Bangladesh has categorized SME into two broad classes: Manufacturing enterprise and Non Manufacturing activities. The International Consultancy Group (ICG) of the UK, in collaboration with the Micro Industries Development Assistance and Services (MIDAS), conducted in...

Words: 4153 - Pages: 17

Business in China

...When you would like to do business with Chinese people you have to know some standards behavior and some rules during the business to prevent some misunderstanding. I will tell you 15 practical that can help you in terms of business. 1. Respect the business card. When Chinese individuals give their cards to someone, they often present it with both hands. To be courteous, you should receive business cards with both hands. Never put the card away immediately in your wallet or briefcase. The Chinese are a very status-conscious people. Make an effort to recognize people’s rank in their organizations. 2. Smile. Don’t look too serious. A smile to the Chinese is like a handshake among Westerners. It is the most common means of communication in China when people meet. The Chinese view a smile as a friendly gesture. Smiling is universal in China. In short, a smile is not a sign of weakness. So don’t look too serious. 3. Learn to talk “metric.” For technical professionals, it is important to be conversant in both metric and English measurements. Present your charts, tables, data, and transparencies in both English and metric units. Your audience will appreciate and understand you better this way. 4. Don’t expect much eye contact. For the Chinese, a lack of steady eye contact is not an indication of lack of attention or respect. On the contrary, because of the authoritarian nature of the Chinese society, steady eye contact is......

Words: 882 - Pages: 4

Trend in Business in China

...Trend in Business in China Wendy He ENG 211D JLU University Lambton College April 5, 2012 2 Trend in Business in China China joined as a formal member country of World Trade Organization (WTO) in 2001 and the way to join it also had many hardships. Chinese government knows that it is very important to join it for Chinese business to have some brand new opportunities. The only problem is joined as the developed country or as a developing country. China is a developing country has not enough ability to afford the responsibility of the developed country. For fear of too many extra duties, Chinese government decided to join as a developing country. The right decision brings a watershed situation for Chinese business. There was a huge financial crisis was sparked by the US subprime crisis in 2008. China also was influenced a lot and many private enterprises were bankrupt. Chinese government has made some useful adjusting policies to deal with these troubles in national business and in the end of 2008 the economic growth rate of China was also had 9%. We can know that the business in China is going to be more and more global and luxuriant. 3 New Business in China All of counties have its own business around the world. This economic interdependence relationship brings both challenges and opportunities to these countries.......

Words: 1043 - Pages: 5

The Risks of Doing Business in China

...The Risks of Doing Business in China Despite recent measures to curb corruption, foreign investors doing business in China must remain vigilant. Tuesday, June 04, 2013 , By Jim Barratt and Jimmy Ko China's economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China's economy will grow by 8.2% this year. However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government's legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. With China's recent transition to new leadership complete, it has been interesting to observe the ruling party's heightened focus on tackling corruption. Under China's new president, Xi Jinping, it has conducted a visible anti-corruption drive and imposed austerity measures in an effort to curb the display of wealth by government officials and generate goodwill among the Chinese population. While critics say that the recent measures target only the most conspicuous displays of wealth by government officials, the anti-corruption drive has already netted dozens of officials. Moreover, some perceive that the recent election of Wang Qishan as the new head of China's anti-graft body, the Central Commission for Discipline Inspection (CCDI), signals that the financial sector could...

Words: 3430 - Pages: 14

How to Do Business in China

...How To Do Business In China Now that business is becoming global, it combined the whole economic, no matter you will accept or not, any countries, corporations and individuals can not stop this trend, what we can do is change ourselves to suit the globalization. As a multinational company, develop different markets have its necessity, and market development can be helpful for the development of the company. In this report ,as the people working in this company, will analyze the differences between home country market and target country market, and help to choose the suitable market when company have willing to investing in a foreign country, the decision of the country which the company can invest in is China. In this report, will make analysis for Chinese market in economic environment, culture, marketing and human resource management, to prove its accessibility, and what risks the company will meet, then give some recommendations to escape or solve the problems. For the decision of target market, will based on its profitability and expansibility, China is a country that has the number of population as 1.3 billion, which means it has great predominance in consumption, now Chinese people’s consumption in household goods and home furnishings less 100 Yuan per capita, below the standard of world average as 200 dollars. But with the development of Chinese economic, there are 20 million people will enter the middle class per year, and with the increasing of people’s income...

Words: 1812 - Pages: 8

China in Business Comunication

...Introduction China China is believed to have the oldest continuous civilization. China has over 4,000 years of verifiable history. Beijing is the capital of China and is the focal point for the country. The official language is standard Chinese, which is derived from the Mandarin dialect. Most business people speak English. There are many dialects in China however there is only one written language. There government is Communist, the promote atheism although the constitution guarantees freedom of religion. China is the most densely populated county in the world with approximately 1.17 billion people as of 1992. Almost 100 percent of the population are ethnic or Han Chinese. There are strict rules regarding childbirth and each couple is limited to only one child. Appearance in China   Conservative suits for men with subtle colors are the norm.   Women should avoid high heels and short sleeved blouses. The Chinese frown on women who display too much.   Subtle, neutral colors should be worn by both men and women.   Casual dress should be conservative as well.   Men and women can wear jeans. However, jeans are not acceptable for business meetings.  Revealing clothing for women is considered offensive to Chinese businessmen Behavior & Manners in China Do not use large hand movements. The Chinese do not speak with their hands. Your movements may be distracting to your host.  Personal contact must be avoided at all cost. It is highly inappropriate for a......

Words: 1798 - Pages: 8

The Adoption of E-Business Technology by Smes

...key factors influencing the adoption of e-business technology by SMEs. To this end, the paper draws on a range of literatures on the diffusion of new information and communication technologies (ICTs), many of which have hitherto been treated as separate. The reasons for this are two-fold. First, e-business technologies are the latest in a line of new ICT technologies. When exploited successfully, ICTs have increased firm competitiveness either by raising the efficiency of internal communication and organisation and/or supply chain relationships, or by facilitating the development of new/improved products and services. Second, it is hypothesised that many of the factors affecting the successful adoption of new technologies are generic in nature. With regards to SMEs specifically, consideration of earlier research may assist us in identifying a set of enablers and barriers to e-business adoption. Hence, by explicitly acknowledging the context and prior history of research in the area, we are able to map out the dimensions of future theoretical and empirical research in e-business adoption by SMEs. In addition to drawing together factors identified by existing research, the paper highlights the implications of network externalities for the timing of technology investments and the returns that accrue to early and late adopters. It also draws attention to a number of problems associated with the analytical concept of ‘the SME’ when it is applied to this area. The......

Words: 13062 - Pages: 53

China Business Environment

...resource, one of the essential element in business. Everythings need human activities. Therefore, a good human resource management can lead to be success. The five-year plan aims in development and gaining competitive advantage over the world. It requires many of tasks and hence many of labor supplies. This provides an business opportunity for a leading company in Human resource management, the ExcelNet, to get involvement for processing these tasks and expand the business over the China. This report will focus on different targets stated in the five-year plan and analysing each targets, providing advices for how to enter the China market by providing human resource services to the China government. Content 1. Introduction 2. Findings and Discussion 3. Recommendation 4. Conclusion 5. Reference 6. Appendices Introduction: The chosen company is ExcelNet, which is a Human Resource consulting firm. It is a leading company in Human Resource Consulting Services and consist of professionals in different sections, providing recruitment, outsourcing, diversified human resource management solutions mainly in Hong Kong and China. The ExcelNet has provided such service to more than 400 clients, it means that the ExcelNet has many experience and skills in the Human Resource Management. It is large enougth for expansion in the China, a huge market with 1.3 billion populations. The ExcelNet has already setup a department in Mainland China and served government departments,......

Words: 2441 - Pages: 10

The Influence of Internet Finance for Sme Financing in China

...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 greatly. Nevertheless, the majority of SMEs have financing difficulties due to their personal limitations and insufficient external support. As a result, it is hard for them to have a further development. With the advent of the information technology revolution, Internet Finance is considered as a new effective way to solve the financial difficulties of SMEs and it brings about many positive influences, although there are some negative aspects to improve. This essay will firstly inform background information about the reasons for SME financing difficulty as well as Internet finance’s current condition. Additionally, it will give evidence for the main argument that there are more positive influences than negative influences of Internet finance on minor enterprises’ financing issue. Finally, some practical suggestions will be put forward, helping Chinese SMEs to find the optimal choice in financing. Background There are more SMEs in China than before in accordance with the relevant statistics. According to Wang (2011), SMEs account for......

Words: 2241 - Pages: 9

Doing Business in China

...Essay 1 Although the potential market in China is very attractive to FDI, it still have many risks that stopping the FDI decide to invest in China. In order to further attract inward FDI and optimize its structure to meet China’s goals of economic development, there are few measures that the China government should take, including providing more knowledge about the market, providing more networking and connections and enhance the investment environment of China. Taking these measures can effectively attract more inward FDI to invest in China. First of all, many FDI has lack of knowledge about the market which make them afraid of investing in China. Therefore I suggest that the China government can provide more information about the market such as the history of investment of the target market, the development of the target market and the structure of the target market. This can help FDI gaining more knowledge about the target market and thus can lower the risk of failure investment. Moreover, being insensitive to Chinese culture, social norms is also one of the major factor that lead to failure investment for FDI. I suggest that the China government can hold some forums or talks introducing the culture of China and the difference between western and Chinese culture. Secondly, lacking of networking and connections in China will also stop the FDI invest in China. Since most of the FDI has lack of the knowledge about the market, they need to find networking or......

Words: 538 - Pages: 3

Business in China

...Success in China For a foreign business, success in China is largely hinged upon the company’s ability to adapt in a different environment and to understand (and be accepting of) how much they simply don’t know. A company looking to enter the China market will quickly realize either they are in unfamiliar territory and proceed prudently with the right help, or, maybe because of ignorance or anxiety, they will act irresponsibly and fail. Foreigners familiar with China may recognize that there seems to be an unending number of misunderstandings between China and the rest of the world. In a business context, these misunderstandings might range from scheduling a business trip to China during Spring Festival to not considering the government in a market entry plan. Companies seeking to enter China must do their homework and prepare to be flexible. Success in China can be extraordinary, but it is not won easily. In China, the government is omnipresent. Depending on the nature of your business, the government may figure into every step of your China strategy. It is important to remember that the Chinese government’s #1 priority is watching out for China. It would be foolish to think otherwise. The five-year plan is not a suggestion as much as it is a mandate. That means, to be successful in China, your goals must align with the goals of the government at every level. Indeed, a successful plan would help the government to reach its goals. Demonstrating an interest in the......

Words: 1193 - Pages: 5