Financing Difficulties In Small Shoe Enterprises Worry

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.

      困境：資金緊張壓垮小企業(yè)

"I'm still holding on, but I'm sure it won't last long."

Chen Xueming has opened this small factory of nearly 100 people for 8 years. For Chen Xueming and his colleagues, the rise of raw materials, the increase in wage costs, the appreciation of the renminbi and the reduction of orders were once frightening, but the real final collapse of the business was lack of sufficient capital turnover.

      債務(wù)成小企業(yè)“死穴”

Sun Wenguang is from Yueyang, Hunan. His shoe factory has been established in 2000 since the establishment of the shoe industry in Chi Street, Houjie. Up to now, there are more than 200 employees.

Sun Wenguang said, opening a shoe factory, some production links have been subcontracted out, at least more than 10 suppliers supply, one side of the problem of shortage of funds, there will be a chain reaction, mutual arrears of money, and finally form a complex debt relationship, it is difficult to resolve.

      銀行不信任 中小企業(yè)貸款難

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.

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.

Long Weiyang once made a market survey and found that the large enterprises in Dongguan are basically not moving at present, mainly because the small businesses of some traditional industries began to migrate on a large scale.

Yang Rong, a shoe factory owner, said that in addition to pferring factories to cheaper areas, business has also begun to adjust. In the past, it mainly depends on the foreign trade market, and now it can only be pformed into domestic sales.

      政府舉措

Dongguan trial water microfinance company

After the large-scale pilot projects in Jiangsu and Zhejiang provinces, the enthusiasm of Dongguan water test small loan companies is rising.

According to people concerned, there are three main reasons for applying for the pilot in Dongguan:

First, Dongguan has always been a financial oasis. Its financial assets have always been excellent. The basic conditions for undertaking financial innovation are better. Two, Dongguan has abundant private capital, and only the banking system has accumulated hundreds of billions of yuan of funds. Three, social credit is good, Dongguan's folk customs are simple and honest, and enterprises have a good tradition and reputation of honesty and trustworthiness.

"Trial water small loans can not only help some SMEs solve the" ischemia "problem, but also find a legitimate outlet for private capital.

According to the pilot guidance of small loan companies, the loan amount of the same borrower shall not exceed 5% of the net capital.

Despite the fact that "eight characters have not yet been written off", the relevant government departments and civil servants are still enthusiastic.

      臺企升級也缺資金

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.

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

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.

      專家視線

Venture capital fund

Absorbing private capital

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."

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.