The sustained reform and opening up of China attracted many people to work from inland to coastal city and some of these people have many years of work experience. After having a good understanding of the technology, market, and sales-marketing of the industry which they are engaged in, they can't restrain entrepreneurial passion and founded their own companies to engage in the commercial and business activities.
Around this venture group,this paper does some research associated with my own practice, in order to sum up a set of the experience which can be used for reference to everyone. The entrepreneurs of this group set up their own companies, which are generally small enterprises, and most of them choose to close their companies after managing them for several years. Few of them can really make its company bigger and keep sustainable development. The reasons of failure mainly have following several points :
First, some start-ups have an excess of passion, but lack of business plan and teamwork spirit, whose common feature is courageous, quick on the trigger, and planless. They don’t concentrate on the development of the enterprise management team and have not a robust organizational structure, they always score all duties and make incogitant decisions.
Second, they have some practical experience, but are lack of theoretical knowledge and marketing abilities. Consequently, they cannot effectively manage their companies. most entrepreneurs have an illusion that since they have a good knowledge of the management pattern, production technology, marketing channels, mechanical equipment in their previous company ,it’s easy for them to try themselves. And they stress little importance on the vital company and marketing management. Until their own businesses start up, they realize the original business model is impracticable.
Thirdly, they lack awareness of the difficulties. For example, if we lack liquidity capital ,it is hard to maintain the normal operation of the enterprise,
As a person's ability is limited after all, it is hard to meet the requirements of the development of enterprise operation and development. This needs to establish a good entrepreneurial team to make small enterprise to survival and to grow in strength in the fierce market competition.
Index Terms— start a business , team, small enterprise, management, development