Small and middle—sized enterprises in Wenzhou has made great contributions to the economy. First contribution is that it helps to increase the employment rate. As we all know, employment is vital to people’s livelihood, is the main factor of the development of economy and the improvement of the people’s living standards. In Wenzhou, small and middle—sized enterprises are the major channel to absorb the labors and the strategic choice to solve the employment problem. It is not only the successful experience in developed countries, but also a truth proved by practice in many big developed cities in China, like Shanghai, Guangdong and so on. Since China has carried out the Reform and Opening—up policy in 1978, Wenzhou seized the opportunities
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Moreover, the sharp contradiction between land and people is highlighted, there is a large population but relatively little land. Although capital in Wenzhou was not rich at that time and geographic condition was not well, the development of economy in Wenzhou is much faster than many other cities in China, and the unban unemployment rate was at a lower level in a very long time. The credit is that the contribution of small and middle—sized enterprises. At the early stage of the Reform, Wenzhou model became famous as well as Wuchuan model. Wenzhou model means the combination of small commodity economy and big market. Small commodity refers to commodity that has small scale of production, low technical content and low transport costs. Big market refers to market network that has been built by Wenzhou people in the whole world. With the help of small and middle—sized enterprises in Wenzhou, the employment rate increases much faster than many other …show more content…
First, the amount and scale of SMEs take great advantage. Nowadays, there are more than 99% of enterprises are small and middle—sized enterprises in Wenzhou, and they are still increasing steadily. As a result, SMEs become mainstay of labor market. Second is due to the reasonable localization of industrial organization. According to regional characteristics of Wenzhou, it mainly develops light industry and labor intensive industry, most of which are based on family unit. For instance, leather industry is very famous in Wenzhou because it requires clear division of labor and enough consumer group and so on. All of these can be found easily in Wenzhou, and other industries like clothes, textile, and lighter are also developed well in this area. Third, these industries in Wenzhou have specialization of work and industrial cluster development. The main founder of economics, Adam Smith had a labor division theory. He thought that the origin of division is due to different talent of different people. It has a lot of benefits, like improving labor productivity, promoting social prosperity and increasing social wealth and individual wealth. The reasons why division of work can make those benefits are that workers are able to be familiar with only simple operation, then proficiency of one worker can be improved a lot and the degree of specialization of the workers can also be improved.
Moreover, the sharp contradiction between land and people is highlighted, there is a large population but relatively little land. Although capital in Wenzhou was not rich at that time and geographic condition was not well, the development of economy in Wenzhou is much faster than many other cities in China, and the unban unemployment rate was at a lower level in a very long time. The credit is that the contribution of small and middle—sized enterprises. At the early stage of the Reform, Wenzhou model became famous as well as Wuchuan model. Wenzhou model means the combination of small commodity economy and big market. Small commodity refers to commodity that has small scale of production, low technical content and low transport costs. Big market refers to market network that has been built by Wenzhou people in the whole world. With the help of small and middle—sized enterprises in Wenzhou, the employment rate increases much faster than many other …show more content…
First, the amount and scale of SMEs take great advantage. Nowadays, there are more than 99% of enterprises are small and middle—sized enterprises in Wenzhou, and they are still increasing steadily. As a result, SMEs become mainstay of labor market. Second is due to the reasonable localization of industrial organization. According to regional characteristics of Wenzhou, it mainly develops light industry and labor intensive industry, most of which are based on family unit. For instance, leather industry is very famous in Wenzhou because it requires clear division of labor and enough consumer group and so on. All of these can be found easily in Wenzhou, and other industries like clothes, textile, and lighter are also developed well in this area. Third, these industries in Wenzhou have specialization of work and industrial cluster development. The main founder of economics, Adam Smith had a labor division theory. He thought that the origin of division is due to different talent of different people. It has a lot of benefits, like improving labor productivity, promoting social prosperity and increasing social wealth and individual wealth. The reasons why division of work can make those benefits are that workers are able to be familiar with only simple operation, then proficiency of one worker can be improved a lot and the degree of specialization of the workers can also be improved.