Small And Medium-Sized Shoe And Garment Enterprises Encounter Financing Difficulties

What is different from the past is that every time the macroeconomic regulation and control, SMEs can find the way to survive, and this regulation has little to do with survival.

By this year, the external environment of the whole economy has changed significantly. Sustained inflation pressure, continuous appreciation of RMB and rising labor costs are all squeezing the profit margins of enterprises.

More importantly, overseas markets have also seen new changes in the engine driving China's rapid economic development: foreign trade is no longer booming as it used to be, and the number of orders sought by enterprises is less and less.

In the summer, the small businesses in traditional industries are all alarmed. The failure of SMEs has occurred frequently, and the cost of private lending continues to rise. Money, whether debt or loans, has become a top priority for small and medium-sized enterprises to survive.

Long Weiyang, a finance and trade department at Dongguan University of Technology, said that Dongguan's financial difficulties are mainly those of small businesses that need expansion and small businesses, but borrowing is very difficult.

This is mainly because banks do not trust traditional types of enterprises.

The credit rating of these small businesses is not high, the project is not big, and banks have no incentive to loan.

The main financing way for small enterprises with difficulty in financing is to raise funds through private sector and borrow from business partners or friends, all by private credit.

The lending rate is usually 2~3 times the bank interest rate.

There are also pure usury, but usury is like drinking poison to quench thirst. If a mistake is made, it will die faster.

Market survey finds that large enterprises in Dongguan are basically not moving at present, mainly because the small businesses of some traditional industries begin to migrate in large scale.

The issue of capital is also the biggest problem facing Taiwanese businessmen in upgrading and pformation.

Ye Hongdeng, former chairman of the Dongguan Association of Taiwanese businessmen, said in an interview with reporters that from the beginning of this year, the "special fund for science and technology" in Dongguan, which is 1 billion yuan a year, will be opened to Taiwan businessmen for the first time, so as to promote the upgrading and pformation of these enterprises.

But high technology itself is high investment and needs a complete capital market.

"If the capital market is not perfect, do not touch high-tech at all."

Ye Hongdeng believes that high technology needs venture capital (venture capital), good securities market, good bank loans and financial leasing.

But Dongguan's multi-level capital market has not been established at all.

How to build a multi-level financial market, including venture capital, venture capital, financial leasing, trust, bond, bank and so on, is a matter for the Dongguan government to do.

In the development of private financing, Dr. Long Weiyang is very optimistic about venture capital fund. He believes that in the future, several venture capital companies in Dongguan will be able to attract more private capital to promote economic development.

"Venture capital fund has a strong policy leading role. It mainly invests in small high-tech enterprises, and its potential profitability is strong. It absorbs abundant private capital and boosts the upgrading of Dongguan's industrial structure."

Long Weiyang said.

For the financial innovation of traditional industries, Long Wei Yang believes that to activate private financing channels and help small businesses survive under traditional industries, it is important to vigorously support the development of the guarantee industry. With the help of guarantee platform, private financing can develop healthily.

"With the intervention of Guarantee Corporation, bank loans are easier, and private capital is also a guarantee for mutual dismantling."

Long Weiyang said.