Small And Medium-Sized Textile And Garment Enterprises In Pearl River Delta Face Unprecedented Difficulties

The Yangtze River Delta, which is represented by Shanghai, Zhejiang and Jiangsu provinces and the Pearl River Delta region in our province, is a densely populated area in China's small and medium-sized enterprises. They once created the "made in China" miracle, but now they are faced with an unprecedented predicament.

First, the small and medium-sized enterprises seem to be "frogs" in the warm water.

At present, the predicament of small and medium-sized enterprises must be analyzed from the macro economic background.

As the global economy will enter a slow growth period in the next 5 to 10 years, the high growth rate of China's GDP will continue to be 10%.

Since the beginning of last year, the central bank has raised the deposit reserve rate for 12 times in a row, reaching a historical high of 21.5%, which has led to a shortage of demand in the credit market.

Due to natural reasons, the small and medium-sized enterprises are most vulnerable to the tightening of macro policies. They are hard to finance the financial institutions. They will inevitably seek private financing and face the pressure of high financing cost and high risk.

From the internal analysis of enterprises, the rising cost is a big mountain on the enterprise.

Many factors, such as RMB appreciation, rising labor costs, rising raw material prices, high financing costs and so on, are also faced with the problem of power slug restriction and recruitment difficulties. A number of cost increases have played a comprehensive role in manufacturing enterprises, leading to corporate profit margins.

Under such circumstances, low-end manufacturing enterprises and small and medium-sized workshops are hard to bear the pressure of operation and will be faced with the risk of bankruptcy.

At present, small and medium-sized enterprises seem to be "frogs" suffering in warm water. They can not die at once, but they can not see hope alive.

Two, the dilemma faced by SMEs today is quite different from the impact of the international financial crisis in 2008.

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Three, solve the dilemma from the three levels of enterprise, market and government.

From the perspective of enterprises, accelerating pformation and upgrading is an inevitable and wise choice for enterprises to cope with the predicament.

Small and medium-sized enterprises should extend the chain or upgrade the chain by innovating enterprise system, improving management level, accelerating technological innovation, pforming technological process, building private brand and widening marketing channels.

From the market perspective, the survival of the fittest is the rule of the market economy.

Those small and medium-sized enterprises with low added value, high energy consumption, high pollution and labor-intensive will inevitably pfer to Southeast Asia, Africa and Mainland China because they can not afford high cost burdens. Industrial pfer to the cost depressions is a helpless and expedient policy for small and medium-sized enterprises to cope with the current high cost dilemma.

From the government's point of view, we should give up power and profit.

We should effectively reduce the unreasonable tax burden on enterprises, expand the scope of opening up, break the "glass door", lower the entry threshold of enterprises, and implement a positive support policy for industries encouraged by the government, such as hi-tech and high growth industries.

While appropriately increasing interest rates to curb inflation expectations, it is necessary for the financial sector to reduce the financing costs of SMEs, and encourage mergers and acquisitions among SMEs by means of finance, taxation and other means to promote the benign expansion of SMEs through mergers and acquisitions.