Small and medium-sized enterprises (SMEs) must rely on technological innovation and accelerate transformation and upgrading. In recent years, SMEs in Wenzhou have continued to develop steadily, with a large number of well-known enterprises such as Bao Lihua, Enhua, and Weihua emerging, which can be described as "large ship-like" companies. However, it should also be recognized that the majority are "small sampans," and most of them are dominated by economic transformation, extensive management, and family-owned models. They often have a single product range, low technological content, tight working capital, and weak ability to resist business risks. Pilot-operated solenoid valves must adjust their thinking and strategies, take a path of strengthening and improving, and transform and upgrade in order to enhance their ability to resist risks.
The bankruptcy of Wenzhou companies has its unique reasons. Due to the lack of human resources in micro solenoid valves, many SMEs in Wenzhou no longer focus on developing manufacturing businesses, but instead invest in real estate, stocks, funds, and other fields. The profit margins of SMEs are already relatively low, and with additional investments in non-manufacturing sectors, the risks increase, putting the survival of SMEs once again in a profit dilemma and leading to the sequential bankruptcy of some SMEs. Only by enabling SMEs to smoothly carry out technological transformation and achieve "the transition from manufacturing to intelligent manufacturing" can this situation be improved.