Half Stoppage And Half Start Is Still Embarrassing: Wenzhou Breakthrough: Spanformation Pressure Of Small And Medium-Sized Enterprises

Thirty years Hedong, thirty years Hexi.

　　 Wenzhou After ten years, twenty years and thirty years, the pattern seems to be at the crossroads. Face financing Difficult, Raw material With the increase of prices and the tightening of money, many enterprises have gone bankrupt. Many SMEs are in a state of semi shutdown. The pressure of survival is always beating many small and medium-sized enterprises. In the next step, where will the pieces fall? Is it to spanform, upgrade or maintain the status quo? Experts believe that to overcome the current difficulties and solve the financing difficulties is not a panacea, enterprises must seek their own spanformation. But some experts pointed out that blind spanformation is undesirable, otherwise it will die faster.

Survival pressure

The private enterprises in Wenzhou are regarded as the vane of China's private economy. The change of small and medium-sized enterprises in Wenzhou reflects the development situation of small and medium-sized enterprises in China to some extent.

Zhou Dewen, President of Wenzhou SME Development Association, said that the current economic situation in the country is relatively grim. Jiaodong, Dalian and Pearl River Delta SMEs face great difficulties. Some industries are not optimistic about the whole industry, such as textile industry, lighters industry and so on. These labor-intensive and material dependent industries and enterprises are faced with some difficulties, and the pressure of survival is very great.

Under the pressure of labor shortage, rising raw materials, appreciation of the renminbi, energy saving and emission reduction and financing difficulties, the profits of Wenzhou's small and medium-sized enterprises are squeezed.

"The average annual return on investment of SMEs in Wenzhou ranges from 8% to 10%, and now it has dropped to 1% to 3%." Zhou Dewen said, for private enterprises, losses can be borne in the short term, but for a long time, they can not stand any more. They may go bankrupt.

"10 years ago, a year's profit is almost 10 years' profit." Speaking of the current situation, Mr. Ye, a boss of a glasses factory in Wenzhou, complained. Because for more than 20 years of foreign trade business, Mr. Ye is also a little famous in the industry, but it has not helped him to get rid of the embarrassing situation of half - stop and half - start.

Mr. Ye told reporters that before and after 2000, the profits of the enterprise reached 30%, and then the scale was expanded, but the profit was less than one year. According to the annual income of 500 thousand yuan, in the past, we only need to produce two thousand or three thousand pairs in one day, but now we must make ten thousand pairs every day, and the profit falls to 5%.

In Wenzhou, orders for producing spectacles are all from abroad, and brands are customers. This kind of OEM is relatively common in the locality. With the rising production costs and the appreciation of the renminbi, the profits of the spectacle business have been squeezed out.

In the face of industries without competitive advantages, business owners dare not speak lightly of rising prices, or else even the shadow of orders can not be seen. But facing the order, the enterprise is still in a dilemma.

"Now I want to see the order, and I'm afraid I can't make an order, but I can't decide whether to sign or not to sign." Lao Yang, who is engaged in the clothing import and export business, told us that our profits have fallen by half. The situation is far worse than the financial crisis in 2008. In the past, the annual rate of return on investment was about 10%, and now it has dropped to 5%.

Even so, Lao Yang did not dare to take orders beyond six months or a year. "Signing the bill, for fear that the cost of production is getting higher and higher, and if it is not produced, it will lose money. If it is not signed, the customer will find other homes, and there will be more people in this field, and everyone is playing the game." Therefore, in order to reduce costs and control risks, Lao Yang can only shorten the delivery date and order within three or four months.

In fact, Wenzhou's labor-intensive enterprises are facing a difficult situation of small profits and unsustainable. Wenzhou economic and Trade Commission monitoring showed that in the first 3 months of this year, the sales value of 35 export oriented enterprises such as glasses, lighters, pens, locks and so on decreased by 7% compared with the same period last year, and the profit dropped by 30% over the same period last year. These enterprises accounted for more than 1/4 of the loss, and only 30% of the enterprises' profits continued to grow. The average profit rate of the industry is 3.1%, and the profit margins exceed 5% of the enterprises are less than 10. Relying on low wages and low production factor prices, the days of making big money for processing money have become history.

Chen Naixing, an expert on small and medium-sized enterprises, believes that in the long run, China's economy will be in a situation of cost driven inflation. The small and medium enterprises that will win the meager profits and the extensive development will be ruthlessly eliminated.

Intersection of life and death

Transformation and upgrading may be the most important thing for Wenzhou SMEs to rely on for a long time to survive at low cost, low market price and low profits.

Zhu Jianping, a shoe maker, is currently chairman of Zhejiang spotlight Technology Co., Ltd. Since 2006, he has broken into the "LED", which is known as Chaoyang and blue ocean industries. After that, he quickly recruits and actively works with research institutes, spending large sums of money on the establishment of LED drive power R & D center in Europe, and successfully solving the key problems such as heat dissipation, power supply life and so on, which are puzzling the popularization and application of LED industry.

"In 2006, I felt that there was no big development in the footwear industry, so I decided to enter the field of LED emerging industries." Zhu Jianping suggested that small and medium enterprises should be allowed to set foot in the emerging field in time according to their own conditions.

"Manpower costs are rising, funds are tight, market rules are playing a cruel role in elimination, and small and medium-sized enterprises, which are less protected by the state, can only upgrade their technological equipment and complete spanformation to find a way out." Chen Naixing thinks, "a few years ago, enterprises that have prepared for technological upgrading and product improvement will be better off now."

Ai Xuejiao, head of the enterprise crisis management team at Peking University, believes that for a long time, SMEs in Wenzhou have not focused on industrial upgrading because the real pressure of survival has not been encountered. "Only when enterprises really can't live, can they think of spanformation."

Ai Xuejiao said that the business mode is the internal regulation of enterprises. "At present, the change of Wenzhou enterprises in this area is not enough." He believes that this is the fundamental reason for the difficulties of SMEs in Wenzhou. It is not just the problem of capital. If the enterprise does not change its mode now, it will not necessarily improve the situation by relying on capital alone.

The upgrading of industrial structure can not be spanformed for spanformation, and the traditional processing export enterprises carrying a large number of surplus labor force in China. The result of the eager spanformation is the hard landing of China's economic development.

"In addition to spanformation, they can not find a better way of redemption. But the spanformation needs time accumulation and labor pains, which is a test for Wenzhou enterprises. Zhou Dewen said.

Small and medium-sized enterprises in Wenzhou are mostly family enterprises, and their management is relatively backward. At the same time, as a labor-intensive industry or export oriented export-oriented enterprises, the growth mode is relatively backward, so spanformation is not easy for them.

Zhou Dewen analysis said that the spanformation of small and medium-sized enterprises should be considered from their own reality and should not be blindly spanformed. Because the road of spanformation and upgrading is not a smooth road, it needs funds, technology, personnel and other aspects of support. "Now most of the small and medium-sized enterprises are still in the state of survival, if this time of blind spanformation can only be faster."

That is to say, for most small and medium-sized enterprises, the most important task at present is to find the right position and seek development with a pragmatic attitude. Zhou Dewen believes that this part of small and medium-sized enterprises can unite to go out of the current situation of low, small and scattered industries and form industrial clusters. Leading enterprises can integrate their industries with their own advantages, so as to create small giant enterprises.

With the ability to resist risks, enterprises will upgrade to build their own brand on the basis of joint venture. Zhou Dewen said that enterprises with their own brands didn't freeze to death in the wake of the financial crisis in 2008. Instead, they got the cake by virtue of brand advantage and got the development. "Many small and medium enterprises in Wenzhou just don't have their own brands".

After completing the upgrading step by step, enterprises can consider whether they want to spanform themselves. Zhou Dewen said, but not to abandon traditional industries, because no matter how the market economy develops, traditional industries are needed at any time.

Bottleneck to be solved

In order to get rid of the difficult position of operation, the spanformation of SMEs in the period of inflation is the result of macroeconomic action. Xue Shengwen believes that although inflation has led some enterprises with low productivity and low profit margins to be eliminated by the market, it has given birth to a number of new competitive enterprises. However, the spanformation of enterprises needs sufficient funds and policy support. Although small and medium sized enterprises are currently being developed as platforms for the development of enterprises, a large number of small and medium-sized enterprises at the end of the industrial chain can not obtain favorable policies.

Financing difficulty has been a bottleneck for the development of small and medium-sized enterprises.

Lee boss of a lighter company in Wenzhou has been applying for loans from the bank since the end of 2010. Until now, it has only reached 30% of the total amount of funds, leaving the funding gap, and only rely on private lending. Even so, Li boss still let the friends around to do business envy, because it is not easy to borrow money from the bank.

But this is a drop in the bucket for Lee boss, who wants to spanform. "If we can borrow more capital, we can make a bigger list and make a good spanformation project."

Xue Shengwen said that solving the financing difficulties of SMEs not only requires the government's policy support, but also needs to make loans to SMEs in the aspect of RMB lending business, so as to solve the shortage of capital chain and the better development of SMEs. In addition, we should correctly guide private lending from behind the scenes to the stage of social financing. Under the premise of guaranteeing its reasonable capital yield, we should use the flexibility of private lending to supplement the financing needs of SMEs.

Zhou Dewen, who has been rushing for financing for small and medium-sized enterprises, believes that the current investment and financing system can not keep pace with the economic development. On the one hand, Wenzhou's 36 SMEs need money and support. On the other hand, Wenzhou has a large number of private capital. But there is no good bridge and link between them. He said that the strength of Wenzhou's private capital was strong. The relevant departments could expand the scope of the existing rural banks, further relax restrictions on the access, scale and interest rate fluctuation of financial institutions, and guide Wenzhou's financial capital to enter the normal capital market. Because the door is right. The corresponding enterprises will loan for small and medium-sized enterprises.

A researcher who does not want to be named in the development research center of the State Council also expressed the same view. At present, the financing channels for SMEs are not smooth. To solve these problems, it is necessary to develop SMEs' finance, set up specialized service banks for small and medium-sized enterprises, and meet the development mode of small and medium-sized enterprises. At the same time, we should increase small loans, increase product categories, and tilt to small and micro enterprises.

Statistics show that at present, small and medium-sized enterprises account for 99% of the total number of enterprises in the country, and the tax paid to them accounts for more than 50% of the national tax revenue. The contribution of GDP accounts for more than 60% of the total number of the whole country, and the employment rate has accounted for over 75% of the whole country. It can be seen that SMEs play an important role in the prosperity of the economy, expansion of exports and increase of employment. This requires more care and support from all sectors of society, so as to achieve greater development.