The average life expectancy of American SMEs is 8.2 years, while that of Japanese SMEs has exceeded 10 years, reaching 12.5 years, and is moving towards 20 years old. The average life span of big companies in China is 7-9 years, that of big companies in Europe and America is 40 years, and that of big companies in Japan is 58 years.
Reasons for the short life expectancy of enterprises in China;
1. From the enterprise itself, the decision-making ability of enterprise leaders will directly determine whether the enterprise can gain a foothold in the market for a long time. In terms of decision-making ability, entrepreneurs in China lag far behind those in developed countries. The main reasons can be summarized as follows:
The popularization of higher education in European and American countries is much higher than that in China, and the education level of its entrepreneurs is also much higher than that of China entrepreneurs. Moreover, the entrepreneurship education system in Europe and America is perfect, and many universities have set up entrepreneurship-related courses. As long as you step into the university, you can enjoy this kind of education. Only in recent years did China begin to attach importance to entrepreneurship education.
Different from domestic university education, European and American universities pay more attention to the cultivation of students' practical ability and the combination of theoretical knowledge and practice.
Entrepreneurs in China are blind and impetuous, and all want to get rich overnight. Therefore, they can lead the enterprise to go on for a long time.
2. From the perspective of enterprise innovation, few enterprises will rely on entrepreneurial enterprises to support the market, and many entrepreneurial enterprises will also be unable to gain a foothold in the market for various reasons.
Looking around, China's entrepreneurial types are mainly concentrated in the fields of catering, wholesale, retail and low-grade consumer goods. These areas have low barriers and fierce competition. If entrepreneurs are complacent and unwilling to innovate, it will be difficult to achieve sustainable development.