Coping with the economic slowdown
April 13, 2012
The Chinese economy did not escape last year’s dire global economic conditions unscathed. Since small- and medium-sized enterprises have a much shorter life span in relation to western private companies, there is more pressure and challenges to contend with. Cheung Kong Graduate School of Business (CKGSB) jointly conducted a survey with Ernst & Young with a group of 100 selected entrepreneurs.
The survey results showed that the key issues of most concern to the majority of respondents included intensive competition, the rising costs of both raw materials and human resources, and their wishes for further tax deductions and more relaxed regulations by the government. Despite these concerns, one surprising result from this survey was that 75% of the entrepreneurs showed an optimistic outlook for 2012.
CKGSB Professor Liu Jing warned that the reported results of the 100 responding entrepreneurs in 2011 should not be taken to represent the whole situation. Given the large number of uncertainties with the macro-economic environment, the companies surveyed probably displayed a little too much optimism about the future.
Professor Liu said, “There are lots of uncertainties, for example, the European debt problem, the US housing market crisis, and the Chinese housing bubble, all these are uncertainties. We didn’t even count the political strife in the Middle East, issues with North Korea and other related current events. So there are multiple risks facing us in 2012.” Companies should, on one hand, be adapting themselves to the restructuring of the global economy, and, on the other hand, be preparing for elevated prices in various areas.
However, the CEOs surveyed stated that they will not change the strategic position of their businesses but they want to focus on doing business better. Professor Liu also agrees that in order to get through this difficult period of economic slowdown, cautiousness and conservativeness are indispensable.
“I think we are facing tremendous risks this year. So being conservative at this time is good for individual consumers, as well as the companies. So we might have situations that present themselves that are possibly going to be worse than the financial crisis, so we must be prepared,” he said.
Enjoying what you’re reading?
Article Subscribe (1)
CKGSB Report
Related Articles
Our Programs
Emerging Markets: Innovation and Scaling for Exponential Growth – ASEAN
A China-focused innovation program for ASEAN executives and business owners responding to the impact of AI on their industries.
Gain insights from leading Chese thinkers in Jakarta, with an optional immersion in China and opportunities to connect with the business leaders driving innovation. The program offers a closer look at how developments in China could affect your industry and business.
LocationJakarta, Indonesia
Date23–26 March 2027
LanguageEnglish (with Chinese translation)
Asia Start: AI + Digital Ecosystem China Expedition
An immersive program for entrepreneurs and executives looking to understand China's AI and digital economy firsthand.
Gain the latest trends and insights, strategies, and connections to overcome challenges and support future business growth in Asia and beyond.
LocationChina (Beijing, Shanghai, Hangzhou & optional Shenzhen)
DateApril 19–24, 2027
LanguageEnglish
Intelligent China: AI, EVs & Smart Manufacturing
A three-part program examining China’s advances in AI, electric vehicles, and smart manufacturing.
Through faculty-led sessions, company visits, and exchanges with industry leaders, gain practical insights for your organization's strategy, partnerships, and investment decisions. Join an individual four-day program or complete the full 12-day series.
LocationBeijing, Shenzhen, Shanghai, and Hangzhou
DateSummer – Winter 2027 (three 4-day programs)
LanguageEnglish
Scaling Innovation: AI and Digital Strategies for Business Transformation
Global Unicorn Program Series
In partnership with Columbia Engineering
This program is designed to equip senior executives with the strategic insights and tools necessary to lead in this transformative era.
LocationNew York, USA
Date26 Sep - 01 Oct, 2027
LanguageEnglish
Emerging Tech Management Week: Silicon Valley
Global Unicorn Program Series
In partnership with UC Berkeley College of Engineering
A technology management program for leaders looking to turn emerging technologies into business opportunities.
Combining proven strategies and cutting-edge research, the program helps participants fuel innovation, seize opportunities in emerging technologies, and catalyze transformation within their organizations. Designed for managers, start-up leaders, and technology investors, it includes visits to venture capital firms and technology companies, alongside mentored group projects.
LocationUC Berkeley, California, United States
Date31 Oct - 05 Nov, 2027
LanguageEnglish
Stanford & Silicon Valley Immersion Program
Global Unicorn Program Series
In partnership with Stanford Engineering Center for Global & Online Education
A Silicon Valley immersion for entrepreneurs, intrapreneurs, and investors leading and scaling AI-driven companies.
The program combines academic learning with visits to AI and robotics labs and Silicon Valley companies, giving participants direct exposure to emerging technologies and the businesses developing and applying them.
LocationStanford University Campus, California, United States
Date05 - 10 Dec, 2027
LanguageEnglish with Chinese Translation
