The SWOT Analysis of the Choice of Entrepreneurship Goals of Small and Medium-Sized Private Enterprises in China

Abstract

As we all know, “entrepreneurship is harder and business is harderâ€, and the key to “starting a business hard†lies in deciding whether or not to start a business goal that is suitable for its own advantages. In this paper, SWOT is used as an analytical tool to comprehensively explain how enterprises use their advantages and avoid their own weaknesses to find a high performance entrepreneurial goal suitable for their own advantages. The purpose of this paper is to provide meaningful exploration and reference for the choice of entrepreneurial goals of small and medium-sized private enterprises in China. According to the data and data of “National Bureau of Statistics†and “China's small and medium enterprise information networkâ€, the life cycle of Chinese enterprises is much shorter than that of the European and American countries. According to the results of random sampling survey, the average life cycle of private enterprises in China is only 3.7 years, while the average life cycle of small and micro enterprises in private enterprises is only 2.5 years, while the average life cycle of small private enterprises in the developed countries represented by the United States and Japan is 8.2 and 12.5 years. If we change the comparative perspective from small and medium-sized enterprises to large enterprises, the average life cycle of large enterprises in China is only 7 to 9 years, while the average life cycle of large enterprises in Europe and America represented by the United Kingdom and the United States is up to 40 years. The average life cycle of large enterprises in Japan is up to 58 years, and in a hundred years old stores. The number of old businesses in China's enterprises is far behind that of the developed countries in Europe and America. If we deeply analyze the reasons behind the short average life cycle of small and medium-sized enterprises in our country, it is not difficult to see that the small and medium enterprises in China still face the deviation of the choice of entrepreneurial goals, the difficulty of finding the entrepreneurial resources, the plight of financing, the poor entrepreneurial path, the inbreeding of the “inbreeding†and the poor cooperation of the entrepreneurial team. And the bad phenomena such as strong internal consumption still exist. If we continue to focus on the reasons that the average life cycle of small and medium enterprises in China has a short average life cycle, we use the SWOT analysis method to analyze the enterprises how to use their own advantages and avoid their own disadvantages, so as to find a high performance goal suitable for their own advantages.