Since the reform and opening up, private enterprises have sprung up in large numbers from the market, during which batches of land have fallen and batches of land have been born.
Today, it has been more than 40 years since the reform and opening up, and how many private enterprises that were established in the early years are still surviving in the market
According to a survey report released by PricewaterhouseCoopers in 2011, the average life expectancy of small and medium-sized enterprises in China is only 25 years, the average life expectancy of group enterprises is only 7 8 years, compared with the average life expectancy of European and American enterprises of 40 years. In addition, according to the Blue Book of the "Report on the Development of China's Private Enterprises" compiled by the All-China Federation of Industry and Commerce in 2017, the average life cycle of China's private enterprises is only 2In 9 years, 60% of private enterprises go bankrupt within 5 years, and 85% die within 10 years. According to Wu Xiaobo's latest statistics in 2019, only 6% of China's private enterprises can survive 10 years.
According to statistics from the State Administration for Market Regulation, as of the end of May 2023, there were more than 50 million registered private enterprises in China (excluding individual industrial and commercial households), compared with 1,08570,000 households) increased by 37 times, the proportion of private enterprises in the enterprise increased from 794% to 924%。According to the latest data from the Ministry of Industry and Information Technology, by the end of 2022, the number of micro, small and medium-sized enterprises in China had exceeded 52 million, an increase of 51% from the end of 2018. In 2022, an average of 2 new businesses were established every day380,000 households, which is 13 times.
Seeing these phenomena and figures, I can't help but ask a few whys: Why is the survival cycle of a large number of private enterprises so short?Why do only a very small number of private enterprises survive for 10 years or more?Why do a large number of entrepreneurs know that there are tigers in the mountains, but they prefer to go to the tiger mountains?Did those fallen private entrepreneurs make money from the market?Why didn't you make any money?Why the business didn't succeed ?..
After 26 years of practical experience from grassroots business to senior management to the national market, and the latest research has found that the fundamental reason for the failure of the vast majority of private enterprises is that entrepreneurs or operators seriously lack systematic thinking about enterprises or operations, especially before creating enterprises.
In the early years, due to the reform and opening up, invigorating the market, the rapid development of the economy, the rapid expansion of demand, there are many blank opportunities in the market, and the degree of competition is not high, many private enterprises have seized the opportunity of the market or business opportunities, as long as the entrepreneur dares to start a business and dare to operate, without systematic thinking, basically can achieve profitability and make money. However, as there are fewer and fewer blank opportunities in the market, the competitive pressure is increasing, and it is becoming more and more difficult to survive and develop. In fact, starting a business or running a business in this way can still make money, which is completely a dividend given by the times, not how strong the ability of the entrepreneur or operator is, but its courage or courage is indeed much greater than that of ordinary people, so many entrepreneurs can achieve "overnight rich".
Nowadays, the market is still that market, but the environment for the survival and development of enterprises has changed, and the original entrepreneurs or operators will not operate in the face of the current situation of the marketThis is just like the exam during school, many students do not really grasp the principles of what they have learned, and they will not answer the question type or question of the test paper as soon as the question type or question changes.
Nowadays, there are many enterprises operating in each segment of the market, and it is almost impossible to find the same market blank opportunities as before, even if there are market blank opportunities, they are basically some high-tech markets or projects, of course, there are many markets or projects with extremely high risks. However, many entrepreneurs or operators are still in the process of carving a sword. As everyone knows, in the current economic downturn, it is not that there are no opportunities in the market, but that there are serious misunderstandings or obstacles in the thinking of entrepreneurs or operators, and they cannot see the development environment and trend of the economy and the market at allThis may be an overstatement, but it is. As long as the entrepreneur or operator has not discovered or understood the logic or law of the enterprise and its operation, then the enterprise may disappear from the market at any time, and its operation may lose money or fail at any time.
In fact, entrepreneurship is a systematic project and a complex process, which is by no means easy or child's play. Starting a business requires real money, physical strength, energy, time and other costs, especially at the risk of unpredictable risks in the future. This requires systematic thinking and planning on the part of entrepreneurs, and without systematic thinking, entrepreneurship can become very difficult or at high risk of failure. Entrepreneurship not only involves elements such as projects, markets, operations, and capital, but also involves elements such as strategy, team, market, marketing, competition, law, technology, etc.
Therefore, before starting a business, you need to think deeply and systematically, understand the situation of the target market and competitors, and develop a feasible business plan and business strategy. It is also necessary to assemble a qualified team, including partners, employees, and consultants, among others, to achieve the entrepreneurial goals. In addition, it is necessary to consider the financing and management of operating cash flow problems, as well as legal affairs and risk management.
If you do not think systematically before starting a business, you will definitely ignore some very important and critical success factors, in particular, the logic and law of entrepreneurial success, if you do not understand it, it may lead to unrealistic business plans, or encounter difficulties and challenges in the implementation process. Or even the risk of losing money, in which case you may feel disappointed and frustrated, and you may even give up on starting a business.
Therefore, starting a business without systematic thinking is like a gamble, lacking adequate preparation and planning. Gambling often leads to failures and losses, and a system-thinking entrepreneurship can greatly increase the likelihood of success and make yourself more confident and prepared to face challenges and risks!