Characteristics and advantages of 1. SMEs

Small and medium-sized enterprises are small-scale enterprises with a certain range of employees and total assets. According to the definition of the National Bureau of Statistics, small and medium-sized enterprises include small enterprises, micro-enterprises and individual industrial and commercial households. Small and medium-sized enterprises occupy an important position in the national economy. According to 2019 data, there are 21.376 million small and medium-sized enterprises in China, accounting for 99.8 percent of all enterprises, providing 80.3 percent of urban employment, creating 60.6 percent of GDP, contributing 50.3 percent of tax revenue, and accounting for 68.8 percent of total exports.

Small and medium-sized enterprises have the following characteristics and advantages:

High flexibility. Small and medium-sized enterprises, due to their small scale and few decision-making levels, can quickly adapt to market changes, adjust product structure and business strategies, seize market opportunities and cope with risks and challenges.

Innovative ability. Due to the lack of resources and capital constraints, small and medium-sized enterprises pay more attention to technological innovation and management innovation, dare to try new technologies and models, open up new markets and fields, and form a number of products and services with independent intellectual property rights and core competitiveness.

Personalized diversity. Due to the more segmented market and customers, small and medium-sized enterprises pay more attention to meet the personalized and diversified needs of customers, provide more abundant and differentiated products and services, and meet the diversified choices of consumers.

Strong sense of social responsibility. Because of their closer ties with local society, small and medium-sized enterprises pay more attention to social development and the improvement of people's livelihood, actively fulfill their social responsibilities, participate in social public welfare undertakings, and promote social harmony and stability.

The Development Dilemma and Challenge of Small and Medium-sized Enterprises in 2.

Although small and medium-sized enterprises have the above characteristics and advantages, in the market competition, small and medium-sized enterprises are also facing many difficulties and challenges, mainly in the following aspects:

Lack of funds. Due to the small scale, low credit rating, less financing channels and high financing cost, it is difficult for small and medium-sized enterprises to obtain stable and sufficient financial support, which affects the production, operation and development of small and medium-sized enterprises.

Lack of talent. Due to the low treatment, poor welfare and small development space, it is difficult for small and medium-sized enterprises to attract and retain high-quality talents, especially technical and management talents, which affects the innovation ability and competitiveness of small and medium-sized enterprises.

management lag. Small and medium-sized enterprises because of the management level is less, the management system is not perfect, the management level is not high, it is difficult to achieve standardization, standardization, information and intelligent management, affecting the efficiency and quality of small and medium-sized enterprises.

The market competition is fierce. Due to the high degree of homogeneity of products and services, low brand awareness and influence, small and medium-sized enterprises are difficult to form their own core competitiveness. They are facing strong competition from large enterprises and other small and medium-sized enterprises, and even eliminated.

3. Specialized and New Development Strategy

In view of the development difficulties and challenges of small and medium-sized enterprises, this paper puts forward a new development strategy, that is, focusing on their core business, fine management and operation, characteristic products and services, innovative technology and mode, so as to build the core competitiveness of small and medium-sized enterprises. The new development strategy specifically includes the following aspects:

Focus on your core business. Small and medium-sized enterprises should be clear about their positioning and advantages, choose the areas and markets they are good at and familiar with, concentrate resources and energy, do their core business well, do not blindly follow the trend or expand, and avoid distraction and waste of resources.

Fine management and operation. Small and medium-sized enterprises should establish a sound management system and process, improve management level and efficiency, realize standardized, standardized, information-based and intelligent management, reduce costs and risks, and improve quality and efficiency.

Special products and services. Small and medium-sized enterprises should provide distinctive and differentiated products and services according to the needs of the market and customers, meet the personalized and diversified choices of consumers, increase their brand awareness and influence, and improve their market share and profit margin.

Innovative technologies and models. Small and medium-sized enterprises should pay attention to technological innovation and management innovation, introduce and develop new technologies and models, improve their technological level and innovation ability, form their own core technologies and patents, and enhance their core competitiveness and anti-risk ability.

Implementation Path and Effect of 4. Specialized New Strategy

In order to implement the new development strategy of specialization, SMEs need to take the following steps:

The first step is to conduct market research and analysis, understand your strengths and weaknesses, determine your core business and target market, and formulate reasonable development goals and plans.

The second step is to optimize management and operation, establish a sound management system and process, improve management level and efficiency, realize standardized, standardized, information-based and intelligent management, reduce costs and risks, and improve quality and efficiency.

The third step is to develop distinctive and differentiated products and services, design and innovate products and services according to the needs of the market and customers, provide distinctive and differentiated products and services, meet the personalized and diversified choices of consumers, increase their brand awareness and influence, and improve their market share and profit margin.

The fourth step is to introduce and develop new technologies and models, pay attention to technological innovation and management innovation, introduce and develop new technologies and models, improve their own technical level and innovation capabilities, form their own core technologies and patents, and enhance their core Competitiveness and anti-risk ability.

The implementation effect of the new development strategy can be evaluated from the following aspects:

Performance growth. Specialized and new development strategies can help SMEs improve their core competitiveness, increase their market share and profit margins, and achieve stable growth in performance.

Innovative results. Specialized and new development strategies can stimulate the innovation vitality of SMEs, promote their technological innovation and management innovation, form their own core technologies and patents, and improve their technological level and innovation capabilities.

Brand impact. Specialized and new development strategies can enhance the brand awareness and influence of small and medium-sized enterprises, increase their customer loyalty and reputation, and improve their social recognition and reputation.

social contribution. Specialized and new development strategies can enhance the sense of social responsibility of small and medium-sized enterprises, promote the social welfare undertakings of small and medium-sized enterprises, and contribute to the development of society and the improvement of people's livelihood.

5. conclusions and recommendations

Based on the characteristics and advantages of small and medium-sized enterprises, this paper puts forward a new development strategy of specialization, that is, focusing on their core business, fine management and operation, characteristic products and services, innovative technologies and models, so as to build the core competitiveness of small and medium-sized enterprises. This paper also combines some successful cases, analyzes the implementation path and effect of the new strategy of specialization, and provides some enlightenment and suggestions for the development of small and medium-sized enterprises. This paper holds that the new development strategy is a development strategy in line with the characteristics and advantages of small and medium-sized enterprises, which can help small and medium-sized enterprises to enhance their core competitiveness, achieve stable growth in performance, the continuous emergence of innovative achievements, the continuous expansion of brand influence, and the effective promotion of social contribution. This paper suggests that small and medium-sized enterprises should formulate and implement new development strategies based on their actual situation, continuously improve their level of development and quality, and contribute to the development of the national economy and social progress.