The Survival Of Private Enterprises In The Process Of Globalization

Statistics show that China's private enterprises increase by about 15 per year, but there are more than 10 failures every year, and more than 60% of the private enterprises are less than five years old.

In today's economic globalization, how can China's private enterprises seek a place for survival and development?

The internationalization of Wenzhou is inevitable. In 1999, Jun Yao group moved from Shanghai to international talent to integrate global resources.

The group has two airlines and 13 aircraft in Shanghai.

Aviation is a capital intensive industry. It can not be developed on its own capital. It must be linked to international capital. Therefore, enterprises seek cooperation with international private equity funds.

Now, the company is operating in accordance with the high requirements of the international private placement, positioning in the "best service in the world".

When capital is in place, it faces internationalization.

Zhang Weijiong, deputy director of the China Europe International Business School and director of the China Private Economy Research Center, said that although private enterprises play a decisive role in our national economy, the development mode of private enterprises in the past 30 years is mostly labor intensive and extensive, and the overall level is not very high.

Up to now, internationalization is an inevitable choice for China's private enterprises to become bigger and stronger.

Zhang Weijiong believes that there are several ways for an enterprise to enter the world: one is to use domestic resources to go international, that is, the pioneers of overseas markets; the second is to use foreign resources to operate, that is, to use overseas resources; the three is to use overseas resources to operate globally, and call them global operators.

The competition of enterprises in the international market is more difficult than in the domestic market. Many enterprises fail in trying to internationalize. The main reason is the lack of a clear strategy, lack of adequate understanding of the market environment, and lack of internal analysis.

Ding Kai, President of the Asia Pacific region of Belgium InBev Brewery Group, said that InBev has become a real global company. It has branches in more than 30 countries and regions in the world, and has the highest market share in more than 20 markets.

But in 1990, InBev was a family private enterprise.

How did InBev grow into a global company in just more than 10 years?

It mainly absorbs global resources on the basis of consolidating the domestic market.

Through the listing, we have realized the expansion of capital and become a large global company.

Ding Kai believes that many companies in Wenzhou can learn from these practices.

Ding Kai said that globalization has brought many opportunities for local enterprises. One of the characteristics of multinational companies is good planning. There are some very fresh ideas and management experience that can help revitalize local enterprises and make the local market environment more active.

"If we say that the way in which the private sector of the previous stage is interconnected with the international market is based on research technology or industrial docking, then we may enter a period of docking with international financial capital at this stage or in the future for a longer period.

CHINT has developed into one of the leading electrical appliance enterprises in the world, pforming from selling products to selling services.

Nan Cunhui, chairman of CHINT group, a local entrepreneur in Wenzhou, said.

In this new era, CHINT tries to link up with international financial capital from the following four aspects.

First of all, we should push from extensive management to intensive operation.

Before doing a good job with international financial capital, consolidate their strengths and learn from competitors.

Second, constantly optimize the product mix, and promote the traditional industries to environmental protection and energy saving.

CHINT has invested in wind and solar energy, and solar energy has entered the second phase of construction.

The products are mainly pported to developed countries in Europe and America, and less developed areas in Africa, and areas without power grids.

Third, we should actively change the operation mode and promote product operation to capital operation.

Fourth, promote manufacturing from China to world brands and brand names.

China can not become the world's processing plant, but to become the world's factory.

CHINT has begun to build factories overseas, actively participate in some foreign energy generating fields, and set up solar energy factories in Europe to acquire international brands abroad.