"What?"
This news surprised Su Qingwen and Min Yuehua, who both had knowledge of private enterprises.
It's easy to imagine the massive uproar that would occur once registration for private enterprises is opened up.
Su Qingwen's lips trembled as she asked, "Is this true?"
As an intellectual, I am well aware of the current environment. How could such a policy be allowed to be issued? What is a planned economy?
What is communism?
Is this a joke?
I once suspected that Ye Beiping was just making empty boasts here.
Ye Beiping slowly shook his head and analyzed seriously: "The opening up to individual businesses is only in the experimental stage. If the response is good, we might crack down on some and support others. This group of people will gradually develop into representatives of private enterprises."
He knows quite a lot, including things like kings.
It's definitely impossible to reveal the specific name.
Min Yuehua shook her head repeatedly: "No, impossible. Even if private enterprises are allowed to register, what does that have to do with state-owned factories?"
"Well, of course it's related." Ye Beiping chuckled calmly, "If you want to know why state-owned factories go bankrupt, you can look at their management model."
"I'm just asking you, isn't the factory manager of your state-owned factory the highest-ranking person in the factory?"
"Yes." Everyone nodded.
That's for sure; the factory director is essentially the top leader, so of course he's the most powerful.
Ye Beiping shook his head: "If you compare the term 'factory director' with that of private and state-owned enterprises, you'll see the difference."
Everyone was even more confused.
Is there a difference between privately owned factories and state-owned factories?
But Su Qingwen quickly discovered the problem: "You mean that private enterprises are truly controlled by one person, while the factory director of a state-owned factory is not controlled by him."
As soon as these words were spoken, everyone realized what was going on.
It seems that this is indeed the case.
Ye Beiping snapped his fingers: "That's right. State-owned factories have quotas to meet every year. But private enterprises set their own quotas. For example, if I want to change the management model of a factory, the shareholders' meeting or an individual in a private enterprise can make the decision, but the factory director of a state-owned factory can't do that. He has to submit a report to the higher-ups, wait for the investigation and review, and also do ideological work with the employees below."
“We must be clear about one thing: the employees of state-owned factories are proud. If we try to change anything about them, they will rise up in resistance. The factory director has authority and power, but not all of it. They can certainly report to the relevant departments or cause trouble. There are naturally people above who can govern and manage the factory director.”
“But private enterprises are different. They can provide employees with good benefits, and they can also fire employees who cause trouble. Our country is known for its labor force. In other words, I want to change the management model of this factory. If employees don’t listen, they can just leave. Employees have nowhere to reason with each other. Why? Because private enterprises are about making money, while state-owned factories need to guarantee the welfare and benefits of their employees.”
"That's the difference between the two."
hiss!
After hearing this explanation, everyone present gasped in shock.
Even the youngest, Su Xinwan, frowned slightly, her delicate nose twitching incessantly.
It feels too cruel.
"But you can't just fire someone like that, can you?" Min Yuehua frowned.
Ye Beiping raised an eyebrow and said confidently, "Can we not fire them? Otherwise, how can we establish our authority? The benefits of state-owned factory workers are something that ordinary enterprises can't afford. You have to understand that every penny they earn ultimately goes back to the factory workers."
“Private enterprises only need to guarantee monthly wages, without any other benefits. In comparison, state-owned factories lose out on a cost. The reason I was able to get low-priced leather shoes from Wencheng is because their factories were already on the verge of collapse, and in order to stay afloat, they were willing to give me a price that was almost at cost.”
"But private enterprises can sell goods at such prices for a long time because they guarantee workers' wages at these prices. As long as private enterprises don't go bankrupt, they can survive in the long term, even if the boss doesn't make a profit. State-owned factories can't do that. They can manage for a year or two, but if they fail to meet the targets set by the higher authorities, how can they continue to operate?"
Actually, it's quite simple: if production targets are met, employees can receive more benefits, such as housing.
Private enterprises, on the other hand, do not need to think about these things and do not need to bear anything other than wages and costs.
Therefore, state-owned factories are clearly at a disadvantage in price wars.
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