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    "Transformation Fund" Helps Smes Dilemma

    2008/7/5 16:52:00 14

    "Transformation Fund" Helps Smes Dilemma

    He Bin's shoe factory owner, Dongguan, has been thinking about whether the company is going on or running like some bosses.

    As a company, profit is the only goal.

    But because of the economic downturn, the market is showing signs of weakness.

    And the tightening of money has made it more and more difficult to alleviate the shortage of funds.

    After careful consideration, He Bin decided to turn off the business.


    In fact, more than one He Bin has been shut down by the tightening of money and the downturn in the sales market.

    According to data from a research firm in Dongguan, nearly 2000 shoe companies in Dongguan have closed down in the past year.

    In shoe enterprises, there are more than 3000 shoe factories in Huidong. In two or three months, four hundred or five hundred small and medium-sized shoemaking and shoe factories have been closed.


    It is not only Guangdong, but also the small and medium-sized enterprises that are once in the limitless area of Jiangsu and Zhejiang.

    According to reporters, at present, there are more than 30 SMEs in Wenzhou, and 20% of them are facing bankruptcy.


    He Bin told reporters that due to the macro tightening policy, many enterprises are generally short of funds, especially in many labor-intensive SMEs in Guangdong province.


    According to statistics from relevant departments, only in Guangdong Province, the potential capital demand of SMEs is as high as 2 billion yuan.

    Compared with the rigid demand of SMEs, SMEs lack more than capital support.


    A Dongguan City Daling mountain furniture factory owner reluctantly told reporters that the adjustment and optimization of industrial structure is the only way for Chinese enterprises, but for small and medium-sized enterprises, it is more difficult to expect enterprises to adjust their structures themselves.

    Because small and medium-sized enterprises are mostly labor-intensive enterprises with backward production capacity and weak technical strength, if the pformation is not supported by the government, the enterprises themselves have no strength to adjust and upgrade themselves.


    Faced with the current situation of embarrassment, how to make SMEs get through the predicament has aroused concern from all walks of life.

    While enterprises are seeking their way out, governments at all levels are exploring positively.


    In the near future, Liu Zhigeng, Secretary of the Dongguan municipal Party committee, said in an interview with the media that in order to optimize the industrial structure adjustment and upgrading, the Guangdong provincial Party committee and the provincial government put forward the "double pfer" strategy of industry and labor force.

    As a pilot city of learning and practicing Scientific Outlook on Development, Dongguan will set up a pformation fund to promote this project.


    To cope with the predicament, the Dongguan municipal government will set up a pformation fund, which can really mobilize the "pfer" enthusiasm of enterprises.

    This kind of government led assistance can produce an effect in the short term. However, in the long run, actively upgrading the industry is the only way to solve the current difficulties.


    Liu Zhigeng told reporters that while the total economic growth has increased substantially, we can see that the industrial structure of Dongguan is not reasonable, especially the double advantage effect is slowly losing. Dongguan's industrial structure is not adjusted or upgraded, so it is difficult to continue to develop.


    With the establishment of the Transformation Fund, Dongguan has invested nearly 4 billion yuan to build 8 town level industrial pfer parks in North Guangdong and eastern Guangdong. It can pfer some industries to the inside as a new industrial park in Dongguan to fill the development space of Dongguan.


    Now, as the forefront of reform and opening up, the Pearl River Delta and Jiangsu and Zhejiang provinces have to face the embarrassment of developing bottlenecks.

    Transformation and upgrading are urgent choices based on reality.

    When enterprises face difficulties, they still need to actively upgrade their industries under the help of the government.

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