Wenzhou Model

Compared with 1978, Wenzhou's industrial output value increased from 1.1 billion yuan to 203 billion yuan in 2001; fiscal revenue increased from 130 million yuan to 9.6 billion yuan. Wenzhou's rapid economic development benefits from the extraordinary development of the private economy. In 2001, the output value of private enterprises accounted for 85% of Wenzhou's GDP, and accounted for 98% of both total industrial output value and total retail sales of consumer goods. It can be said that Wenzhou's economy is the private economy, and the "Wenzhou model" is the model for developing the private economy.

Characteristics and trends of Wenzhou’s private economic development

1. Characteristics of Wenzhou’s private economic development

In the development process of more than 20 years of reform and opening up, Wenzhou’s private economy has The distinctive characteristics of "five combinations" have been formed:

First, it is combined with the cultivation and construction of the market. Wenzhou's economy is based on the "market". Many markets themselves are invested and established by private enterprises, and the market operators are mainly private enterprises. Behind each market are thousands of private production enterprises. As early as the period of household industry development at the beginning of reform and opening up, Wenzhou had formed one of the top ten professional markets famous in the country. At that time, there were more than 100,000 farmers purchasing raw materials and selling products for family businesses, selling Wenzhou products to all parts of the country. After more than 20 years of development, a complete marketing system has been formed that emphasizes both professional markets and market networks, local markets and foreign markets, and both tangible and intangible markets.

The second is combined with the large-scale inflow and outflow of labor force. Wenzhou's economy is a regional economy with "two ends outside" and "big imports and big exports". In the early days of reform, Wenzhou's 100,000 sales force built a bridge between Wenzhou products and markets elsewhere. Now there are more than 1.6 million Wenzhou people across the country, more than 100,000 in Hong Kong, Macao and Taiwan, and more than 300,000 around the world, most of whom are engaged in marketing activities. . Almost all Wenzhou people are doing business in places above the county level across the country. Wenzhou's market network has many "nodes", wide coverage, rapid operation, keen reach, low cost and very strong competitiveness. The vigorous development of the private economy has created a large number of jobs, allowing Wenzhou to better solve the problems of labor employment and laid-off re-employment.

The third is to combine it with the development of "block economy". Wenzhou's economy is a typical regional scale economy, which is market-oriented and connects scattered small businesses through social division of labor and professional cooperation to form a block economy. At present, Liushi electrical appliances, Qiaotou buttons, Yongzhong valves, Tangxia auto parts, as well as urban clothing, lighters, lamps, shoe leather and other products have formed considerable scale production and sales bases, forming a block economy. This regional economy of scale allows Wenzhou's private enterprises to have only "small" vitality, while at the same time forming "big" strength, and their products have strong market adaptability and competitiveness.

The fourth is to integrate it with the development of small towns in Wenzhou. The development of Wenzhou's private economy and professional market has promoted the rise of small rural towns in Wenzhou. In 1978, Wenzhou had only 18 construction towns, but now it has developed to more than 140. In 1984, farmers in Cangnan County built Longgang Town, "China's No. 1 Farmer City" on the basis of several fishing villages at the mouth of the Aojiang River. It was hailed as a miracle of reform and opening up. A number of economically strong towns such as Longgang, Liushi, and Yongzhong stand out. These towns have rapid economic development, high degree of openness, and strong development potential. They have formed a pattern of enterprise demutualization, production specialization, construction standardization, and a non-agricultural population. new development trends. At present, the population of organized towns accounts for more than 60% of the city's total, the total industrial output value and total retail sales of consumer goods account for more than 80% of the city's total, and the fiscal revenue accounts for more than 50% of the city's total.

Fifth, it is combined with Wenzhou’s unique historical and cultural background. Historically, Wenzhou has been a gathering place for business and trade since the Southern Song Dynasty and has a long tradition of doing business. Wenzhou businessmen have unique qualities due to the influence of regional culture. Wenzhou culture is a unique regional business culture that is different from traditional Confucian culture. Wenzhou has had a large number of immigrants since ancient times and has the genes of immigrant culture. The unique historical and cultural background has created Wenzhou people who are adventurous and adventurous, which has become a unique advantage for economic development.

Wenzhou people have "awareness of autonomy, entrepreneurial spirit, innovative thinking, load-bearing character, risk concept, and business ability" and are particularly adapted to the market economy. The policy of reform and opening up has provided Wenzhou people with a big stage to display their talents. Wenzhou culture and Wenzhou spirit have promoted the vigorous development of the private economy.

2. New trends in the development of Wenzhou’s private economy

In recent years, changes in the macro environment have posed new challenges to Wenzhou’s economy. Facing new challenges, private entrepreneurs in Wenzhou actively explored new development trends in the private economy:

First, breakthroughs in the system. The foundation and starting point for the development of private enterprises in Wenzhou is the family system. However, as the enterprise becomes larger, this organizational system begins to show flaws, which is not conducive to the operation and development of the enterprise. Private enterprises can no longer meet development needs by relying solely on their own rolling development. If enterprises want to go out of Wenzhou and achieve leap-forward development, establishing a modern enterprise system is the only way. Many private entrepreneurs have clearly proposed enterprise system innovation. A number of companies such as Chint Group and Delixi Group have actively explored this aspect and achieved remarkable results.

The second is organizational breakthrough. Paying attention to the construction of party and league organizations is another highlight of private enterprises in Wenzhou. The party and league organization activities of Shenli, Tianzheng and other enterprise groups have been carried out very distinctively. Private entrepreneurs in Wenzhou believe that the vitality and stable development of enterprises is largely due to the important role played by party branches in enterprises. As Zheng Shengtao, chairman of Shenli Group, said: The establishment of the party branch firstly establishes the integrity of the enterprise; secondly, the role model played by party members enhances the corporate team spirit. The greatest wealth brought by the party branch is to "stabilize the team" and enhance the cohesion of the enterprise, and its value is immeasurable.

The third is a breakthrough in the market. “Wherever there are Wenzhou people, there should be a market.” Why does the market love Wenzhou people so much? This is undoubtedly due to the brand effect of Wenzhou products and increasingly developed marketing methods. Currently, Wenzhou has 7 well-known Chinese trademarks, which shows that Wenzhou entrepreneurs attach great importance to brand creation. Brand effect is Wenzhou’s unique industry advantage. In the increasingly fierce market competition, the choice of marketing methods has become increasingly important. The professional market with millions of buyers and sellers all over the country was once the pride of Wenzhou enterprises. Today, with the advent of the Internet age, online sales have become one of the main channels for Wenzhou enterprises, and they have once again reached the forefront of the market.

Inspiration from the “Wenzhou Model”

Wenzhou’s experience in developing the private economy has given us the following inspiration:

1. Clear guiding ideology and strategically Give priority to the development of the private economy. The development of Wenzhou's private economy is centered on the overall goal of building a modern new Wenzhou and based on the requirements of the three strategic priorities of improving the level of industrial modernization, accelerating urbanization and vigorously promoting people's modernization. It has shifted from relying mainly on quantitative expansion in the past to quantity. At the same time as quality, we should pay more attention to quality improvement, gradually realize innovation in technology, system and management, constantly create new first-mover advantages, and truly strategically prioritize the development of the private economy. Wenzhou's experience shows that while the private economy is expanding in quantity, it must also focus on improving quality; without the full development of the non-public economy, it will be difficult for the economy to achieve leapfrog development. The private economy will surely become an important force in instigating a new round of economic development. Clarifying this point is particularly important for us to re-understand the strategic significance of developing the private economy.

2. Further optimize the development environment of the private economy. Wenzhou implements "equal enterprise registration, equal taxes, equal fees, equal loans, equal market access and equal services" for enterprises of all types of ownership, guiding the economy of all types of ownership into an orderly and equal competition environment. Private enterprises in our city also have difficulties in getting loans and getting things done. Wenzhou's experience provides us with useful reference. We must resolutely implement the provincial party committee's policy of political equality, fair policies, legal protection, and hands-off development of the private economy, create a social atmosphere and market environment for the development of the private economy, and promote the accelerated development of our country's private economy.

3. Guide private enterprise system innovation and improve the degree of organization of private enterprises.

Wenzhou gradually implements scientific management of the family-style management model of private enterprises through guidance and setting up examples; for qualified enterprises, it encourages them to become joint stock companies and limited liability companies, and gradually establish a modern enterprise system. Wenzhou's experience proves that the healthy and sustainable development of the private economy is inseparable from its focus on establishing a modern enterprise system and establishing a sound corporate governance structure. Based on the actual situation in Zhongshan, some private enterprises that were once famous across the country later failed. The main reason was that they did not establish a reasonable and effective management system. Therefore, we must attach great importance to the institutional innovation of private enterprises, continuously improve the degree of organization of private enterprises, and ensure the healthy development of the private economy.

4. Focus on improving corporate quality and enhancing market competitiveness. Drawing on Wenzhou's experience, the following measures should be taken:

First, actively guide enterprises to promote scientific progress, develop advantageous products, and improve the technological content of products. It is necessary to establish an innovation fund for technology-based small and medium-sized enterprises, establish an enterprise technology innovation center, explore an effective mechanism to combine economy and technology, start from the "handshake" and development implementation of labor-intensive industries and advanced applicable technologies and high-tech, and integrate project selection, technology investment, Integrate capital investment, share transfer and other aspects into one, and explore a way to promote technological innovation.

The second is to focus on brand effects and support traditional advantageous industries. Learn from Wenzhou and strive to change the mode of economic growth, guide enterprises to implement professional division of labor and collaboration in accordance with the requirements of socialized mass production, promote traditional industrial clusters, concentrate capital, create brands, and accelerate the formation of a number of large enterprises with certain popularity and competitiveness. , large group.

The third is to accelerate the construction of a team of high-quality entrepreneurs. We should attach great importance to the cultivation of scientific and technological professional managers, send a group of on-the-job business managers to study and train abroad, promote the establishment of a professional manager market, and provide intermediary services for enterprises and professional managers.