On a visit to China 2 years ago, I visited a factory in the Guangdong Province that made Computer Tables. It was a Factory Spread over 1 Acre of land and employed over 350 + Employees. It was a typical Family run Chinese Small & Medium Enterprise Factory setup in the last decade amidst China’s great economic boom. After our Business Talk we walked around the factory and saw a Huge Production Line with its sweating workers and gurgling machines, a Planned Loading and Unloading Area, a Small Conference Room to Interact with Customers/Business Associates and a Mess Type Eating Area for the Staff. But there was something which appeared to be missing. The Missing thing was a dedicated department for keeping accounts, filing files, maintaining statutory records. Such a thing was non-existent. When we enquired with the Owner about where is the department to maintain accounting records and paper work , he just pointed to 1 Man sitting on a Table with a Cupboard behind him. In India if a Factory were to Employ 350 People and be a Manufacturing Unit dedicated to Export, a Factory would need at least 5 full time employees in a Dedicated Department for Accounting, Documentation, Paperwork etc. Employing 350 People would require maintaining a multitude of Records, Paper work and Files related to Accounts, ESI, PF, Banking, Export Incentives, Labour, Corporation, Power etc which would need at least a Small Store Room. But the Chinese can do this with 1 Man and 1 Cupboard. It’s a Strange Reality but True !!!
Did you find out how do they manage it? Is it because everything is online or the policies are so simple that you dont need that many people or the combination of both. We employ less than 5 % of that Company and we have many more acc staffs
Simple Procedure, Less Intrusive Government.
The Governemnt their wants Industry to Grow and not restrict them with Babudom. The babus. government officials get promotions based on how industry and export performed in their area. So the are more active to encourage industry and not trouble them with unnecessary paperwork and restrictions.