Business

One Quarter Of The Original Enterprises In Zhongguancun Face Bankruptcy

Mr. Wang Liping, director of the HR Department of Zhongguancun Management Commission, has gone on record as saying that the Zhongguancun market is currently the fastest changing market in China, and although there is a fund support system in place, it is insufficient to serve all the enterprises there.

It is for this reason, Ma argues, that enterprises in the area are so short-lived. Generally speaking, in a period of 1-5 years, 20-30% enterprises can be expected to go bankrupt. If an enterprise survives for more than five years, it is deemed to be strong enough to adapt to the market.

General managers of three companies: Mr. Chen Lei, managing director of Beijing Tianqing Technology Co., Ltd, Ms. Guo Peilin, general manager of Beijing Xuezhi Technology Co., Ltd and Mr. Zhang Lianyi, founder and general manager of Beijing Jietong Software Technology Co., Ltd. are used by the press as examples of how to run a successful business in the area.

They hold that there are three rules that must be followed: first, the founder of an enterprise must be familiar with the market environment. Second, they must have a certain amount of capital and sustainable fund to support their business, and thirdly, they should have a sufficiently sophisticated approach to be able to handle any crises that may emerge.

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