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��Home>>China Observer
Individual businesspeople become vulnerable group
www.chinanews.cn 2007-05-30 17:23:56
Chinanews, Beijing, May 30 �C Individual business people were once envied
by society when China first kicked off the reform and opening-up. To many
people, those people became rich ahead of most other people in China's
economic reform. However, this group has also become the heated topic in
society. Once the government also issued some policies to support their
development. Through years of work, some of them began to start up their
own business and became managers of private-funded companies, said an
article in the Bimonthly Talk magazine.
What is the fate of these private company managers? In fact, many of them
now have a hard time running their business. The heavy tax placed on them
and the rapid development of supermarkets and retail markets make their
business environment become harsh. Most of private companies find it
harder to make profits than before. Over time, they become the vulnerable
group in society.
Information shows that at present, the number of individual
businesspeople is declining sharply.
This situation will not only damage the long-term development of the
Chinese economy, it will also make the unemployment problem become more
serious since at one time, the prosperity of private economy had helped
created a large number of job opportunities and solve China��s
unemployment problem more or less, said Gu Jun, a professor from Shanghai
University.
Individual businesspeople now have a hard time living, which, in part, is
the result of social development, said Shi Lei, a professor at Fudan
University.
When China first launched the reform and opening-up, many individual
businesspeople worked in the service sector. Many businesspeople in the
sector made rapid development since at that time, Chinese service sector
was lagging far behind. However, as society grew, more and more large
companies emerged in this sector. These companies offered better service
and they were also more reliable compared with those individual
businesspeople. As a result, new companies grew larger and they gradually
squeezed individual business people out of the market. In order to
survive in the market, individual business people should establish their
credibility, which was actually a hard thing to do because this would
increase their operational costs, Professor Shi said.
On the other hand, the failure of individual businesspeople has also
resulted from their own problems. As modern economy develops, many
industrial standards are set up in China. These industrial standards have
become the norms to judge the product quality or the quality of services
in any particular industrial sector. However, the product quality or the
quality of service provided by individual businesspeople varies greatly,
which makes customers think that their products or services are, on the
whole, unreliable. In the end, fewer and fewer people will buy their
products or services, the professor noted.
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