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I. Introduction
1.1Background
The important role of small business in the national and even global economic development is beyond our doubt (Reynolds, 1987). Different countries set different standard of small and medium business Max Peyrard (1997). In the case of China, small to medium business and enterprises are recognised by the number of employees in the business: a company with less than 500 employees are intermediary. Shanghai, one of the largest economic zones in China, has witnessed fast economic growth in last three decades. It is more convincing to check on the statistics about the small business performance to prove their importance. There are 363,600 small and medium businesses in Shanghai in 2006, accounting for 99.70 of all. The overall income of them is 1,705,1640,000,000 Yuan，accounting for 74.34% of the total of all business. The employees in these businesses are 8,032,600, accounting for 84.50% of the total employees in businesses (The Commission of Shanghai Small and Medium Business)
Another key fact we cannot neglect is the performance of retailing businesses, in order to view and evaluate their contribution to the economic increase. Among all the retailing sales in Shanghai in 2006, clothes sales took the largest share, reaching 40% of the whole; the total was 1780000000 pieces, an increase of 10.9% compared to that in 2005. While the whole quality and price of clothes are improving every year, the ones of intermediary price and quality are still most people’s choice, the pieces lower than 500 Yuan accounting for the 70% of the whole sales, and the brand ones lower than 15.3%. (The Commission of Shanghai Small and Medium Business)
As we have mentioned above, the small business is the main driving force of the Chinese economy. In this research, it is found that most Chinese chain stores can be classified as medium or small business. The clothes of intermediary price are mainly sold in two types of clothes boutiques: the intermediary chain stores and the independent boutiques. A brand and central management control these stores. The business methods and practices are always the same. Obviously, the single outlet gets strong support from the main company. The key to a chain store’s success lies in the brands influence of the company’s product and the management from the company.
In contrast, the situation with the retailers is quite different. Boutiques are typically one-shop operations managed by the owner. In general manufacturers’ agents service these outlets. The manufacturers do not have direct contact with the independent boutiques, other than to service the orders passed on through agents. The boutique owners, however, value personal contact. Many a times the boutique owners may feel that the personal contacts element is lacking in their relationship with agents, if the agents are more focused on generating sales to make their own commission. But this feature brings more free control for the managers of his or her store. Due to the size of a boutique, the owners have great influence on their stores. Over the years the boutiques have found favour with consumers, as there has been an increased demand for exclusive range of fashionable clothing.
No wonder Entrepreneurial theory of social network has been introduced in China and discussed, but the empirical study of its application is hardly found in reading and talking (Yao and Xi, 2003), not to m本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。