Wenzhou Private Enterprises Have Strong Risk Resisting Ability And Long Life Span.

The average life expectancy of Chinese private enterprises has several versions due to the different investigative institutions. One is 2.9 years, one is 3.5 years, and the longest one is 7 years. The latest research on life cycle of private enterprises in Wenzhou is the first authoritative answer to the average life expectancy of local enterprises: 10 years! This report has gathered more than 1 years of painstaking efforts by Wenzhou Municipal Bureau of Commerce and industry, Wenzhou municipal Party Policy Research Office and a large number of experts from Wenzhou University. The average life expectancy of private enterprises in Wenzhou is 10 years. How to figure it out? The research object is: private enterprises with legal personality, excluding self-employed individuals. There are more than 70 thousand private enterprises in Wenzhou. When these enterprises are registered and when they are registered, they are registered in the Wenzhou Municipal Industrial and commercial bureau's economic household registration database. Experts collated all the data of private enterprises, and used the function curve to calculate scientifically. To put it simply, for example, when 100 enterprises were registered in 1990 and 2 died each year, the average life expectancy of these enterprises is 25 years. However, this idealized state will not occur in reality, so it is much more complicated to calculate. Huang Xiaozhong, Secretary General of Wenzhou industrial and Commercial Association, explained. Life expectancy may vary from enterprise size to industry. Which companies can survive longer? According to the report, on the scale, the enterprises with less than 500 thousand yuan of registered capital have the worst risk resisting ability and the highest death rate. The enterprises with a registered capital of more than 5 million yuan are relatively stable, with the lowest mortality rate, only 1.24%. From the point of view of the industry, the valve and the civil appliance industry have a longer survival time, and the average age of the enterprises that have been injected (hanging) is over 10 years. Comparatively speaking, the survival period of the two industries of hardware ware and pen making is the shortest, about 5 years. Experts analyze that valves and civil appliances are major industries in Wenzhou. These enterprises are generally better in terms of technological innovation, management team, staff quality, product quality and so on. And hardware, pen making and other small industries are not doing well. By contrast, private enterprises in Wenzhou seem to live longer throughout the country. Why is that? Report analysis: Generally speaking, longevity enterprises have several common points: first, they are very sensitive to environmental changes and can cope with them ahead of time; two, employees have a strong sense of belonging and sense of belonging to enterprises, and even if they encounter difficulties, they will not lose. Three, they have a capacitive innovation environment and strong independent innovation ability. Four, they are financial stability. In the face of financial crisis challenges, cash flow will not be broken. In the view of Ma Jinlong, President of Wenzhou Economic Association, most of Wenzhou's private enterprises belong to grass roots enterprises, and their vitality is stronger. Moreover, Wenzhou has advantages such as system, culture and social environment suitable for the development of private economy. These reasons make Wenzhou's private enterprises relatively long life cycle than other places. To cope with the financial crisis, is Wenzhou private enterprise's risk resisting ability stronger? Huang Xiaozhong believes that Wenzhou began to take the road of market economy in 1978. The enterprises here have developed fairly well after full market competition. Unlike other parts of the world, which were developed only in the 90s of last century, they are so fragile. The data on the average life expectancy of Wenzhou's private enterprises reached 10 years is a good proof. This figure shows that private enterprises in Wenzhou are battled with a strong ability to resist risks. Next, the report will be provided to all relevant departments in Wenzhou so that they can formulate scientific policies and measures in response to the difficulties of different enterprises. Editor in charge: Yang Jing