Small businesses in a new market environment

As China's economy changes, with new developments in industrial layout, production and demand, some enterprises are beaten down while others face the challenges and enter a new stage, with many small-to-mid-sized companies among the former.

In Pingyao county, Shanxi province, however, some small-to-mid-sized companies have waded through the ups and downs of a changing market and have actually made some progress and this is credited to accurate proper market analysis, improved management, and technology innovation.

Two outstanding cases illustrate this -- the Pingyao Decelerator Co, which has been around for more than 50 years, and the Pingyao Tongmiao Motor Co, which has changed from traditional machining to become a more scientific, technologically sound company.

The key to the first company's success has been business and management innovation, which has brought more qualified personnel and increased the effectiveness of the company, improved product quality and appearance and made it more user friendly. Its chief manager, Liang Xinwen, says that the key to success is innovation, stronger new product R&D, and a better marketing strategy and that its technology center has developed many new products over the past several years to meet different demands. The second of these two companies says that it has developed new products, such as an engine and braking device for electric motors, and is now working on a pilotless electric locomotive for mining.

These two examples show just how important innovation for the modern Chinese market was for the county's small-to-mid-sized enterprise improvements.