Private Enterprises Encounter Capital And Winter. Underground Financing Is Rising.

"The other person seems to be a shoe maker," he said. "This is too normal. Now, which bank will lend money to private enterprises?"

More than 100 employees of the company have shrunk by more than half since then.

Zhang Wei described the situation of textile enterprises as saying that life is not like death, but it is not the right time to die.

Accompanied by rising labor costs, rising raw material prices and appreciation of the renminbi, it is even worse.

After a series of surveys, a tight panorama of private enterprises' survival has become clear.

Chen Yongjie, director of the Research Office of the National Federation of industry and commerce, said: "private enterprises will get through this period of time, but the process will be very painful."

Chen Yongjie, who accompanied him, chose his hometown, Qijiang, and held a symposium on the local organization of private enterprises. The theme of the symposium was the impact of macroeconomic policies on enterprises.

Zhang Lin's company is responsible for the logistics service of a university in Chongqing. The company originally had 800 people, and now there are less than 600 people.

Zhang Lin originally planned to build a new branch, but also ran aground due to capital and other reasons.

Zhang Lin said that if the new branch was planned, the number of employed people would be reduced by about 400.

Beyond the funding problem, labor costs are rising.

After the implementation of the labor contract law, private enterprises, which used to be non-standard, face new pressures.

According to the "labor contract law", enterprises need to sign formal agreements with employees, and they need to pay for their employees' insurance and many other expenses.

Because insurance is not pferable, in most private enterprises, employees directly ask for insurance to be counted in wages.

In addition to Zhang Lin, there are more than ten local enterprises representing the private sector. They are engaged in agricultural products processing, textile, chemical and real estate.

Chen Yongjie has found that the cost of employing employees in private enterprises has increased by at least forty or fifty yuan since the beginning of the Spring Festival.

Wages such as those years ago could not even retain employees.

Since the second half of last year, Zhang Wei has encountered the embarrassing dilemma of rising costs and rising prices of products.

He said that prices began to rise from cotton, and the prices of chemical materials for cloth and printing and dyeing were rising.

Coupled with the state's policy of tax adjustment for foreign trade, export enterprises are already losing profits.

Zhang Wei said with a bitter smile that he could make two yuan for his blouse and jacket last year, and now he will lose two yuan for each piece he sells.

"Foreigners look like China. They don't want 10 Fen families."

At this point, the local government called on enterprises to change their thinking in a timely manner, and the products were exported to domestic sales.

But Zhang Wei said it also needed the cost of the business.

"Foreign trade clothes need to be sold domestically, some need to be revised and employees to be hired, all of which require money.

Money is a problem if it's a mile away.

But the trouble is not over yet, but even if it is sold domestically, there will be no way out for its own channels.

The National Federation of industry and Commerce found that in Jiangsu and Jiangxi, some private enterprises engaged in agricultural products processing, industrial manufacturing and metallurgy were crying hard for the price of raw materials. However, in order to curb inflation pressure, the government introduced a price intervention policy, and some cost increases were hard to pass.

The boss of an agricultural product processing company in Nanchang, Jiangxi, said that reducing the cost and increasing the income and expenditure is the primary task of the company, because the price rise without permission is illegal in the locality.

The former vice chairman of the National Federation of industry and Commerce and the president of the China private (private) Economic Research Association is not the first to arrive in Wenzhou. But this time, Wenzhou has worried him.

Bao Yujun described his knowledge in this way.

From the end of March to the beginning of April, he spent two weeks in Shaoxing, Wenzhou and surrounding areas.

However, according to the National Federation of industry and commerce research, underground financing in Wenzhou has begun to calculate at monthly interest rate of 5%.

The annual interest rate is nearly 60%.

Interest is high, but at least temporarily able to keep the business.

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