Assessing the Performance of Micro-Enterprises in Guangdong, China

Abstract

Micro-enterprises, crucial for economic development, rely heavily on government support. This study assessed the performance of micro-enterprises utilizing micro-financing in Guangdong Province, China, addressing their profiles and challenges. Key findings include: most businesses are sole proprietorships in retail, operational for 6–10 years; they reported sales of 100,001 – 500,000, ROI of 21–40, and cash flow of 50,001 – 100,000 with liquidity ratios between 1.51:1 and 3.00:1. Performance metrics showed no significant differences based on business form or years of operation, though sales varied by type, favoring service enterprises. Common issues identified included insufficient cash for purchases, high competition, lack of management training, and natural disasters. An action plan is recommended for enhancing micro-enterprise operations in the region.