Small And Medium Enterprises: There Is Hope When They Live.

"There is hope in life!"

This is the consensus of the representatives of small and medium-sized enterprises in the forum held by our newspaper last week.

"This year, I am afraid, is the most difficult year for China's economy."

At the beginning of the year, Premier Wen Jiabao said so.

Since the reform and opening up, a large number of small and medium-sized enterprises in Foshan have sprung up like mushrooms. In the 80s of last century, they broke through the rules and regulations and had strong market awareness. Foshan people completed the first round of industrial pformation from the rural economy to the industrial economy on the basis of the "joint production contract" of agriculture. In the 90s of the last century, in the tide of market economy, the small and medium-sized enterprises in Foshan pformed from three to one, and township enterprises to modern enterprises. Since the new century, in the wave of global economic integration, Foshan enterprises have once again embarked on the pformation and upgrading road from extensive development to intensive development.

In the face of a new round of difficulties and challenges, how can Foshan enterprises respond positively?

What are the countermeasures?

What are the implications of these measures for Foshan enterprises to tide over difficulties?

On the basis of the enterprise forum, this newspaper will go to the five district enterprises in Foshan to cover the reports, and launch a series of reports on "Foshan enterprises re entering the customs". It will encourage the development of small and medium-sized enterprises, build a platform for communication and exchange, and invite all walks of life to make suggestions.

"I personally feel that since the 30 years of reform and opening up, this impact has been really fierce, and we really feel the market economy and the power of economic globalization."

Chen Yuanan said anxiously.

Chen Yuanan is the chairman of Foshan Lian Da Textile Industry Co., Ltd., whose words represent the aspirations of many small and medium-sized enterprises in Foshan.

　　中小企業生存環境惡化

Since the beginning of this year, a series of factors, such as the world economic slowdown and the continued appreciation of the RMB against the US dollar, the constant increase in the deposit reserve ratio and the loan interest rate, the adjustment of processing trade policies, and the rising of raw material prices, have caused many enterprises in China to face difficulties.

The Spring River Plumbing duck prophet, "cold current" struck, the deepest feeling is the enterprise.

Recently, a number of small and medium-sized enterprises in various industries have told the newspaper reporters that the current situation is really "housing leakage and even rain at night." all kinds of unfavorable factors have exceeded the limits of many enterprises.

"Living" has become the first big challenge for small and medium-sized enterprises.

Mr. Huang, director of a shoe factory in Jiujiang Town, Nanhai District, said that many small shoe factories in Foshan were closed down because most of them were family workshops, so the pressure had not been fully displayed.

However, he predicts that by the end of the year or early next year, if there is no change in the situation, a large number of medium-sized enterprises will start to close down and the unemployment pressure will increase.

"The most difficult year for a household appliance company has been in 30 years."

Lai Xiaoming, Secretary General of Shunde household appliance chamber of Commerce, believes that "cold current" brings both challenges and opportunities.

For some small and medium-sized enterprises, life and death depends largely on whether they can survive the end of this year or early next year. If they can not overcome the current difficulties and linger in the low-end manufacturing sector, the final result can only be closed.

Mr. Li, director of a large toy factory in the South China Sea, said that the difficulty did not begin this year, and it has been showing signs two years ago.

He said that only a variety of factors have been superimposed this year, making it more difficult.

It can be said that the current difficulties have exceeded the capacity of the general enterprise.

"Sometimes I feel very depressed about this situation, sometimes I feel very helpless."

No business failures yet.

As one of the global manufacturing bases in Foshan, by the end of 2007, 295 thousand and 700 of the 295 thousand and 700 registered enterprises had annual output value of over 1478 yuan, accounting for more than 99% of the annual output value of less than billion yuan, and most of them belonged to labor-intensive traditional industries, such as household appliances, textiles, ceramics, furniture, hardware, footwear and toys.

In fact, in the first half of this year's economic analysis meeting, a group of data has initially revealed their predicament: in the first half of this year, our city enterprises

The cost of production and operation has generally increased, and the profit space has been significantly oppressed. From 1 to May this year, the profit growth of Industrial Enterprises above Designated Size dropped 32.7 percentage points year-on-year, and the number of deficit enterprises increased by 9.27% over the same period last year.

Although the survival and development of small and medium-sized enterprises in Foshan is facing many difficulties and challenges, experts analyze that compared with the Pearl River Delta peripheral cities and the Yangtze River Delta region, Foshan's distinctive endogenous economy, domestic market and independent brand are the main characteristics.

According to some enterprises, the operation of many small and medium-sized enterprises in Foshan suddenly became difficult. The most serious reason was that some enterprises appeared blind investment before, so there was a certain difficulty in the operation of bank funds.

For these labor-intensive enterprises, the second half of this year will be a very special period for these enterprises to survive.

　　困境中企業反思發展模式

Faced with the plight of development, many small and medium-sized enterprises in Foshan have begun to reflect on and seek countermeasures.

Monalisa, director of Guangdong Ceramics Co., Ltd., Zhang Qikang, said that at this time, survival is the choice of enterprises, and is the best strategy.

To this end, even if it is to control investment, shut down part of the production line, reduce production capacity, we must also ensure cash flow and bite teeth to fight for a long life.

"Now that we are in trouble, we look back and see that we have made a lot of mistakes before."

Chen Yuanan believes that the predicament is the ability of enterprises to resist risks, so the most important thing is to enhance the competitiveness of enterprises, enhance the management level and innovation ability, and make "people die, I will not die", though this is not easy.

"It is not necessary to be pessimistic and pessimistic in the face of difficulties. Enterprises should take the initiative to deal with them and look for opportunities for development from the predicament."

Wang Yanming, a professor of finance at the south of the Five Ridges Institute of Zhongshan University, who has long been concerned about the development of SMEs, said that the current difficulties faced by enterprises are not caused by the deterioration of the national economic situation. On the contrary, China's economy is generally improving. Recently, top leaders of the country have frequently investigated Guangdong and other coastal areas and raised the export tax rebates for textile and clothing.

In addition, various information indicates that a series of supportive policies for SMEs are in the process of brewing.

"This business cold wave is not all bad, but good companies can stay, and bad ones will be eliminated."

Many experts believe that, after 30 years of reform and opening up, Foshan enterprises have accumulated rich experience in the areas of independent innovation, market expansion, brand and so on. The accumulated wealth and business experience and risk bearing capacity are far beyond people's imagination. Foshan enterprises, who can rush through difficulties in the face of new challenges and challenges, will gain more opportunities for development.

[expert perspective]

Small and medium enterprises' pressure on both sides is difficult.

"Many entrepreneurs say that the difficulties facing this time are the biggest in thirty years since reform and opening up, which is not alarmist."

Yang Wangcheng, vice president of the school of economics and management, and President of Foshan SME Development Association, said yesterday in an interview with this newspaper.

Yang Wangcheng believes that in the macro environment, the problems faced by SMEs in Foshan and all enterprises in the country are the same.

At the beginning of the production factor, the labor cost, energy, raw material price and environmental protection cost of enterprises are rising. On the one hand, the export of enterprises is frustrated by the international environment. On the other hand, domestic demand is also falling due to domestic inflation.

On the whole, two heads are pressed: the cost is rising, the demand is dropping, and it is difficult.

Yang said that compared with multinational corporations and large state-owned enterprises, SMEs still have their own special difficulties, especially in financing.

Not only is bank lending and listing financing even more difficult, but it is even more difficult for enterprises to borrow money from private investors or shareholders or negotiate with suppliers to delay payments.

The small and medium-sized enterprises are always facing the crisis of capital chain breaking.

Because several pillar industries in Foshan, such as household appliances, ceramics, textiles and so on, are consumer goods, and are highly correlated with the real estate market, the domestic and international real estate market is generally at a low ebb. The impact of SMEs in these industries is more direct.

However, Yang Wangcheng also pointed out that in the predicament, we must also see the positive side.

Foshan's internal economy is flourishing, and a large number of small and medium-sized enterprises are growing up in the process of fighting. They are not only strong in resisting risks, but also good in planting, and there should be no large-scale relocation.

Moreover, the products of Foshan enterprises are mainly consumer goods, while demand is decreasing, but it always exists objectively.

"The air conditioner always needs to be replaced if it is damaged. This part of the market should not be reduced in large areas."

Five challenges hit small and medium enterprises "soft rib"

Many unfavorable factors superimposed together, let Foshan SMEs feel unprecedented pressure.

In recent days, this newspaper has held two seminars with Foshan SME Development Promotion Association, Municipal Federation of industry and commerce, Nanhai District Federation of industry and commerce, and in-depth interviews with enterprises.

Shrinking demand in the international market, appreciation of the renminbi, rising prices of raw materials, rising labor costs and tightening of bank credit are regarded as the five "mountains" on the top of the business.

And the five big weaknesses of its own existence -- over reliance on exports, settlement of the US dollar, extensive production mode, labor-intensive industries and financing channels, make Foshan enterprises lack effective immunity when they face "cold".

International market demand atrophy, VS relies too much on exports.

Foshan is an open and export-oriented city. In 2007, our dependence on foreign trade and dependence on exports reached 72% and 50% respectively.

Since last year, the consumption demand of the international market, especially the developed countries in Europe and the United States has been shrinking due to the subprime mortgage crisis and high oil prices.

Foshan enterprises clearly feel that orders from overseas customers are getting smaller and smaller.

The export tax rebate will further increase the export cost and reduce the international competitiveness of products.

Kuang Darong, chairman of Foshan Huifeng Enterprise Development Co., Ltd. said that the export volume of the company dropped by more than 50% in the first half of this year compared with the same period last year.

The company produces 1 million 200 thousand paper gift bags per day, which can not digest such large capacity at home alone.

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