20120307 Follow Me 300 Small is not beautiful

big and small are relative and there is noabsolute good or bad in this world。

Small firms play an important role in economic developmet. To make them develop better, the governmnet shoud give a priority to them when making rules and policies.  Size allows specialisation, so a certain size of firm makes for better productivity.

落洛的小夜 发表于 2012-3-7 13:50
Follow me?this is my first time to hear that......but his words are quite wonderful.

了解Follow us版块请移步https://bbs.pinggu.org/thread-1130480-1-1.html~~欢迎您的加入~

lzguo568 发表于 2012-3-7 15:49
big and small are relative and there is noabsolute good or bad in this world。

形而下的世界没有绝对，形而上的世界是有的~

great and incentive article~
big and small firms have different roles in economic society. there is growing deepeningly relationship between them.  

桉树熊 发表于 2012-3-7 16:43
形而下的世界没有绝对，形而上的世界是有的~

Remarkable, but if you can translate it into English, we will feel grateful.

tianliehuo 发表于 2012-3-7 19:13
Remarkable, but if you can translate it into English, we will feel grateful.

Sorry 4 answering in Chinese~I will try 2 translate it into English

There is no inevitable link between economic performance and enterprise scale. East Asian countries dominated by large enterprisea such as South Korea and Japan are also very successful. I also like the last sentence: size doesn't matter,growth does.

Generally speaking, big firms have invested a lot in long-term assets and have many employees. The cash has been spent, then the coming year's inflow of cash is expected. But for small firms, if they are in a stage of growing up, they need more cashes to buy machinary or something like that. As what is described in Boston theory, the former mostly consist of cash cows, while the latter are mainly called stars, where inflows of cash is expected, but maybe several years later, and at that time, maybe you have left the company. The distinction is just like autumn and spring, the harvest season compared to the cultivating season.

Big firms have great impact on society. If they go banckrupt, large crowds of people will be affected. Then, many compensations may be taken, for example, by the government, while small firms should depend on themselves.

However, which one is better depends on individuals. Many big firms are full of bureaucracy because of the complex organization structure and interpersonal relationship, but small ones can give their employees quicker feedback and motivation.

Of course, small firms may be flexible or enjoy some peferential policies. For example, when the procurement channels are mainly small-scale companies or individuals, then the firm may not register much capital and may keep its sales below some amount  to enjoy the small-scale taxpayer's preferential value-added tax rate of 3%, compared to 17% of largescale ones. But the large firms can also set up small subsidiaries to get such preferential rates, which also depends.