Minister of Agriculture and Rural Development Le Minh Hoan: The important mission of the community economy

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Community economy is an economic form towards people and the future, which plays an important role in balancing the material and spiritual life of people. Community economy can help people increase their sense of existence, creativity and happiness. Therefore, the community economy has an extremely important influence on the Chinese economy in the future. I venture to predict, when China’s economy smoothly transitions from an industrial economy, an information economy to a community economy, the community economy in the future can shoulder the task of raising the bar. social welfare, national synergy and cohesion of the Chinese nation.

The growth rate of the community economy in China mainly depends on whether China has a large number of community enterprises in the future. But the growth of community enterprises depends largely on two sources of collective strength: The first is the huge number of existing small and medium enterprises. The second is the continued proliferation of new startups. Currently, China has tens of millions of small and medium enterprises, and every year there are a million new startups born. They are the foundation of China’s economic and social support.

Mr. Le Minh Hoan – Minister of Agriculture & Rural Development

Small and medium enterprises are the main force in solving employment problems in Chinese society. Currently, about 80% of workers in urban areas have jobs in small and medium enterprises, so if the existence and development of small and medium enterprises is not guaranteed, it can lead to a series of problems. Social Issues. Since 2015, Chinese startups have surged. Every year millions of new companies are born, affecting millions of families. Therefore, if the low success rate of startups is not improved, it is likely to have unpredictable consequences.

The biggest consequence of a failed start-up is not the loss of money, time and energy, more importantly it hits the Entrepreneur’s Belief. There are many people who are not strong enough to not regain their confidence, falling down for a long time.

The tens of millions of small and medium-sized enterprises that start up every year in China have made the startup environment very difficult. Its consequences are increasingly evident. Startups, small and medium enterprises are constantly facing vital challenges, with reduced growth potential, and no longer have high expectations for the future. This is a fact. Anyone who is directly involved in managing a business or starting a business has this feeling of dread.

Faced with the difficult reality of small and medium-sized enterprises, the Chinese leadership and government have paid great attention and made efforts to issue policies to change mechanisms, tax exemptions and reductions, and support capital sources to supporting small and medium enterprises and startups. The Chinese government has made many changes in capital markets. The opening of the third stock exchange shows that the state always places the task of supporting and developing small and medium enterprises, encouraging start-ups in an important position in the process of extensive reform, promoting the role government macro regulation in the market economy, actively maintaining the environment for business to survive.

However, considering the law of existence and development of enterprises in the market economy, Government policies and jobs only play a supporting role. Still The decisive factor is still the creativity of the entrepreneur and the business itself. Enterprises must be able to grasp the needs of customers, constantly innovate to create value. In the context of a fiercely competitive market, customers’ trust and acceptance of your products or services is the key to the business’s ability to continuously generate cash flow, as well as the door to its existence. and development of all businesses.

Most SMEs and startups are not without the ability to create value. Small and medium businesses are all capable of providing quality products and services. Entrepreneurs join the wave of entrepreneurs because they believe they have discovered a customer need and can provide a product or service that meets that need. The reason why businesses face a series of serious viability challenges is mainly the value conversionthat is, most businesses are Having problems connecting with the client. Expression as a customer do not know, do not understand, do not trust the product or servicedo not pay the bills, leading to the business not enough capital to maintain, of course there will be a crisis.

It is normal for businesses to have problems connecting with customers in the industrial and information economy. After all, it’s because SMEs and startups can’t get out of the situation “3 nos” customers do not perceive, unfair competition, Brands have no personality in functional business, so they simultaneously fell into a situation of lack of loyal customers. Community economy was born to solve this problem. It ushered in the spirit of entrepreneurship, encouraging businesses to create effective customer communities, carry out the business of personification ie the personification of the brand and build an attractive personality group for the brand, and at the same time stimulate the spread of the brand and brand orientation through the customer community, thereby attracting new customers, retaining old customers, reducing the cost of continued brand promotion. Community enterprises are the main force of the community economy.

The emergence of community enterprises shows that China’s traditional small and medium enterprises have found a way to transform their businesses, and startups have also found a way to grow. Community businesses have grown on the Internet for the past 20 years. Currently, China is the world leader in Internet and most complete communication technology. All traditional businesses and startups have the same opportunities and benefits.

Small and medium business managers, entrepreneurs should learn and embrace community thinking to turn their businesses into community enterprise. To build a community enterprise, we must be aware of what is the main competitive strength of the community enterprise; begin to study the mental needs of consumersplanning its products and services; start to consider brand personification as the most important task of the business: know how to build a really effective customer community; protect the interests of consumers; know the effective application of Internet, cloud computing and big data; create a sharing economy platform where businesses have a deep connection with customers.

China’s community economy needs millions of community enterprises to support the community economic ecosystem. In the process of China promoting the socialist market economy and realizing modernization with Chinese characteristics, the community economy will constantly promote tens of millions of small and medium-sized enterprises, start-ups and enterprises. Transforming businesses, upgrading business models, building customer communities, finding space to exist and develop in the community economic wave, providing a source of power for economic growth, contributing to solving problems. employment and livelihood issues.

That is the important mission of the community economy. We need to thrive in community businesses for a better future!

Comments of “Xilo”

(“Xich Lo” is the pseudonym used by Minister Le Minh Hoan when writing newspapers and articles.)

One day, a book friend sent me a book “Community Thinking – Community Thinking”. Attached below the book cover is the theme “Building businesses as a community for sustainable development and creating loyal customers”.

Up until now, I still have worries about the two words “Community” so I should read it right away. This is a book by Chinese author Fu Yan. At first, I found it a bit difficult to read because I am not a business, but the more I read, the more I realized new values.

It seems that in this day and age, economic concepts and models are expanded compared to classical economics. This is connected economy, sharing economynow in this book mentions community economy. Then what is Physiological needs, psychological needs and spiritual needs in order from low to high. In business in particular and in economics in general, rarely mentioned before spiritual needs, spiritual values, it’s really confusing.

In retrospect, the Chinese business community around the world seems to be largely successful. Is it because the spirit of cooperation, community thinking has formed and become their philosophy of life and business? It is also difficult to answer, because each person will have a different perspective.

New approaches are easily overlooked because the old is already embedded in everyone’s subconscious. New approaches are often built, laying the foundation for the long term, while we often look at the short term, facing immediate difficulties. New approaches need to be shared at startup forums, besides connecting technology, markets…

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