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With the accelerated marketization process in recent years, small and medium enterprises in our nation have acquired rapid growth accordingly. By the end of 2005, our nation has seen the emergence of over 11 million small and medium enterprises, accounting for 99% of total number of enterprises nationwide. The annual sales revenue and profits of such enterprises have accounted for 57% and 40% of our GDP respectively. As a result, small and medium enterprises have been playing an increasingly critical role in facilitating economic growth, creating job opportunities and optimizing industrial structures.
It is generally believed that a large enterprise refers to the enterprise with a number of employees from 1,000 to 10,000 persons or above. In our nation, large enterprises are mainly distributed across such industries as petroleum, electricity, radio & television broadcasting, military industry, manufacturing, highways and so on.
Most of small and medium enterprises are operating in those industries of comparatively sufficient market competitions, where there tend to be rapid changes and intense competition on the market. Therefore, such enterprises need to be bestowed with lower operation costs, flexible management measures and quick market response capabilities. As far as most of small and medium enterprises are concerned, however, all of their cost controls, marketing means and response capabilities would be subject to the restriction of their communication systems.
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