Countermeasures for Chinese Private Enterprises—Specific Measures for the Management Transformation of Private Enterprises

Author: Li Huagang
Publisher:
Publish Date: 2006-01-01
Features: What determines the forward development of the economy and the Fortune 500 is not the famous, but those who control the headlines of media, newspapers, and television. What truly accounts for the largest percentage of GDP are those unknown innovative small and medium-sized enterprises. What truly drives social progress is not a few celebrity CEOs, but the many who work silently—these people are also unknown, and some may even have low educational backgrounds. Among them are managers, entrepreneurs, and innovators.
—Peter Drucker, renowned management expert
To succeed in business in China, you must learn to balance. You must learn advanced management methods while also learning how to do things within the Chinese context.
—Li Dongsheng
If you want to be a businessman, you must establish your reputation. Although you may not care about the controversies surrounding you, or even create controversies, you cannot lose your reputation. Otherwise, you are not a businessman but a fraud.
—From "The 16 Business Rules of Private Enterprise Entrepreneurs" by Zhou Zhiming
In 2004, approximately 1 million private enterprises in China went bankrupt. This means that about 2,740 private enterprises collapsed every day, and 114 enterprises went bankrupt every hour. This number is the highest in the world. This book reveals the mysteries behind this pain and proposes practical countermeasures for the reform of Chinese private enterprises. Through a large number of cases of private enterprise bankruptcies and gray incidents within private enterprises, as well as an in-depth comparison between private enterprises and foreign-funded enterprises, the book summarizes the various chronic diseases of Chinese private enterprises. From historical, cultural, religious, and philosophical perspectives, it analyzes the deep-rooted causes of the short lifespan of private enterprises—a gray corporate culture.
The author comprehensively and systematically proposes 13 specific operational solutions for private enterprises, including eliminating family-run practices, establishing rules, enhancing human resources, establishing scientific management systems, changing corporate power structures, improving credibility, and elevating corporate culture. Each solution is highly practical. The author argues that the reform of private enterprises must take the path of localization with Chinese characteristics and proposes clear goals and directions for reform.
The greatest feature of this book lies not in merely listing the various flaws and shortcomings of private enterprises but in proposing specific measures and strategies to eliminate these flaws and shortcomings. It is a highly practical applied book on the reform of private enterprises.