Are Smes In Zhejiang Facing &Nbsp? How Can Enterprises Get Out Of Their Predicament?

Recently, Zhejiang's small and medium-sized enterprises, known as "China's private economy vane", have been repeatedly "caught in a crisis". "About 20% of the more than 30 SMEs in Wenzhou are in a state of shutdown or semi shutdown", "Jiangnan leather, Portman, and three flag companies three large enterprises have announced in succession." bankruptcy Or the collapse, the large-scale collapse will emerge again.

Have there been any closures in Zhejiang's SMEs? Why did Portman and other enterprises fail? Facing pressure, how can enterprises get out? dilemma ? The reporter went to the local authorities to investigate.

Focus one: has there been any collapse?

[survey] enterprise overall Run normal The collapse did not happen.

According to a set of data provided by the Zhejiang Bureau of industry and commerce, the number of Zhejiang enterprises is increasing instead of decreasing. In the first quarter of 2011, compared with the fourth quarter of 2010, the enterprises registered in Zhejiang's industrial and commercial bureau increased by 10.50% over the same period last year. In April, the number of enterprises in Zhejiang was still growing, an increase of 10.36% over the same period in March.

In the first four months of 2011, there were 44925 new enterprises in Zhejiang and 7306 enterprises were cancelled. In contrast, the number of enterprises written off from 1 to April in Zhejiang Province in the past five years was 7410 in 2007, 8059 in 2008, 7251 in 2009, and 7610 in 2010. The overall operation of Zhejiang enterprises is normal.

The small and medium-sized enterprises in Wenzhou, once at the cusp of the storm, did not appear in the rumors of mass collapse. According to the statistics of Wenzhou Administration for Industry and commerce, at the end of the first quarter, the number of private enterprises in the city was 534, down 14.56% year-on-year. The number of registered private enterprises and registered capital increased by 15.11% and 28.37% respectively over the same period.

Focus two: Why did Portman and other enterprises fail?

[investigation] Jiangnan leather and other 3 enterprises have their own problems. They must be cautious in investing and borrowing usury.

Recently, the Zhejiang banking regulatory bureau and the Wenzhou banking regulatory sub Bureau issued a survey on the operation of Wenzhou's private enterprises. The contents showed that the 3 enterprises of Jiangnan leather and other enterprises failed, the main problem is their own, not universality.

The survey shows that Jiangnan Leather Co., Ltd. owes to the bankruptcy of enterprises due to a huge amount of gambling debts, and the main reason for Portman's coffee business is running away because of poor management. The three flag group of the main wire and cable company has been in a bankruptcy situation due to its long operation and internal transformation.

It is undeniable that tight money and financing difficulties have become the common pressure faced by SMEs in Zhejiang. A report from the Zhejiang Banking Regulatory Bureau showed that the scale of available credit in Zhejiang (excluding Ningbo) was 12% lower than that of last year. According to the people's Bank of Wenzhou monitoring, the first quarter Wenzhou private lending comprehensive interest rate rose 11.91% in a single quarter, a 8 percentage point increase over the fourth quarter of 2010. The financing cost of enterprises has greatly improved.

The real economy does not make money, and the profits from private credit are high. Many enterprises have started capital business. "Once the virtual economy without real economy is destroyed, the consequences will be disastrous. Enterprises must be cautious in investing. " Ye Hang, Professor of economics at Zhejiang University, suggested this. "The most important thing is to never borrow usury beyond capacity." Ye Hang believes that if the real economic profits of enterprises are not enough to support loans, borrowing usury is to cure poison and quench thirst. This is also the direct cause of bankruptcy of many small and medium-sized enterprises.

Focus three: how can SMEs get out of the predicament?

[investigation] facing the pressure of electricity shortage and rising cost, transformation and upgrading is the way out.

Textile is the representative of Zhejiang's massive economy. The reporter went to sun textile town, Shaoxing County, Zhejiang Province, and visited a number of medium-sized textile enterprises.

Wang Guoquan, the boss of "Xiu Xiu" company, admitted that the pressure of business operation: the cost of labor increased substantially. Now the average monthly labor cost of textile enterprises in Shaoxing county is more than 600 dollars, while that of some Southeast Asian countries is only 110 US dollars. With the coming of summer peak electricity consumption, the "one day" power restriction on the "show show" on will become one week, two days or even more. There are also problems such as rising cost of raw materials, unstable exchange rate and tight money.

The rise of costs has led directly to the decline of corporate profits. According to the statistics of Zhejiang State Administration of Taxation, the ratio of value added tax to sales income of manufacturing enterprises in Zhejiang (excluding Ningbo) between 500 thousand and 5 million yuan is declining year by year from 2.9% in 2008. The first four months of this year are low in innovation, reaching only 2.55%. This shows that low price advantage will never return.

"In the past two years, we are committed to improving the technological content and management, ensuring the profit margin, so it is relatively calm." Wang Guoquan said. He believes that the pressure of all trade companies is bigger now, and the production enterprises like "show show" are doing well because of the transformation and upgrading in recent years. In the current environment, he is not thinking about survival, but how to develop better -- branding and management. Like "Xiu Xiu Xiu", the textile enterprises in sun Duan town are generally in good condition, and enterprises are not worrying about survival, but are seeking development.

Professor Ma Lianghua, deputy director of the Institute of industrial economics, Zhejiang University, said that at present, the scale of Zhejiang enterprises in the transformation process has its own size, and there should be a clear start. For the traditional manufacturing enterprises with certain economic strength and good foundation, transformation and upgrading is undoubtedly the first meaning; for the enterprises with strong prospects and good prospects, it is now an opportunity for development. We should focus on technology, brand, channels and industrial chain construction, participate in market integration, enhance market competitiveness, and expand ourselves; and for small businesses lacking capital strength, lack of technological innovation and lack of market development capability, stopping work and closing business and preserving their strength can be regarded as a strategic choice.

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