Zhejiang 2313 Small Business Survey: 76% Into Credit Blind Area

Despite the recent official denials of the "collapse tide" of SMEs in Zhejiang and Guangdong, small businesses are facing increasingly urgent living difficulties.

"The main pressure this year on small businesses comes from the high cost of labor.

The report, jointly issued by the Joint Research Institute of Alibaba, China National Development Research Institute of Peking University, puts forward a negative view on the "collapse tide" of small and medium-sized enterprises which has recently been widely spread. At the same time, it points out that since this year, with the change of macroeconomic environment, under the background of increasing cost, RMB appreciation and international environment, in the context of monetary policy such as continuously increasing interest rates and raising deposit reserve ratio, small businesses are facing financial pressure and are still struggling to survive and operate actively.

However, the financing difficulties of small businesses have not improved much, and large and medium-sized enterprises are looking forward to financial support.

This view has been "recognized" in the previous official statements.

On the 21 day of the first half of 2011, the State Council Information Office held a news conference on the operation of the national industrial communication industry. Zhu Hong, spokesman of the Ministry of industry and information technology, admitted that the situation of some small and medium-sized enterprises was rather difficult recently.

Under the circumstances of the credit scale compression, financing difficulty has become one of the prominent problems in the current small and medium-sized enterprises. We should attach great importance to it and are studying the policies and measures to further support the development of small and medium-sized enterprises.

"Most of them are still actively engaged".

This report, which lasted two months from the National Development Research Institute of Peking University and the Alibaba, visited 94 small businesses, 4 specialized markets and 12 local banks in 7 cities such as Ningbo, Wenzhou and Taizhou in Zhejiang, and formed a survey of 2313 small enterprises in Zhejiang through questionnaires.

"Although the international economic situation is uncertain, small businesses are facing rising costs and other difficulties, but most small businesses are still actively operating, and there is no" closures ".

The report points out that many small businesses say they do not rely on bank loans, but mainly use their accumulated capital turnover and loans between relatives and friends.

Therefore, the capital turnover of small enterprises is not sensitive to monetary policy of macro regulation and control, nor will small businesses suddenly collapse due to tight monetary tightening.

For the failure of some small businesses that happened this year, Hu Xiaoming, vice president of Alibaba group, thinks that there are three reasons.

"We find that there are three main reasons for the failure of small businesses: one is the failure to invest in high-risk industries; the other is the normal elimination of the market, and some small businesses are in a saturated and over competitive industry, or are low in output and energy." (two)

Small business "pressure coefficient" hurricane

Although there is no rumor of "collapse tide" in small businesses, it is not all good news compared with previous years.

The report points out that the main pressure faced by small businesses this year is even greater than before.

It comes from the pressure of increasing labor costs, rising raw material prices, appreciation of the renminbi, tight payments, power supply constraints, and higher tax costs. This does make it harder for small businesses to operate.

The report analyzes the "top three pressures" faced by small businesses "labor force".

Small business owners who surveyed on the spot all indicated that the per capita employee remuneration increased over the previous years. More than 60% of the business owners indicated that the per capita employee remuneration growth rate was 10% to 30%.

The survey found that 81% of the owners think that the cost of raw materials is one of the major difficulties faced by enterprises.

In the production of light-emitting diode raw materials "silver", the price per kilogram has risen from 2000 yuan in 2010 to 3400 yuan in the second quarter of 2011.

In addition, the continued appreciation of the RMB, the restriction of regional electricity supply and the change of the way of payment by small businesses have all contributed to the difficulty of the operation of small enterprises in the past years.

Accordingly, the report concluded that, whether in the 2008-2009 years of macroeconomic regulation and control policy loosening or from 2010 to now, policy tightening began, the most important reasons for the difficulties faced by small businesses were the increase of raw material costs and labor costs, followed by RMB appreciation, labor shortage and high financing costs.

Macro regulation has no direct impact on the operation of small businesses.

76% small businesses become "blind spots" of credit.

The accompanying operating costs are solid financing difficulties - they are attacking the survival and development of small and medium-sized enterprises.

It is clear in the report that financing difficulties, high cost of loans, and high risk of private lending are still the main factors that perplex the development of small and medium-sized private enterprises.

The survey found that 63% of enterprises have realistic financing needs, and 76% of small businesses need less than 1 million yuan.

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However, due to the inconsistent definition of financial institutions and the high threshold of definition, small businesses with large demand for loans below 1 million yuan have become the "blind spot" of bank loans.

The report shows that many small businesses are used to borrowing money from their friends and relatives. The share of small businesses in Zhejiang through their relatives and friends and private loans is 50%.

Correspondingly, the traditional financial institutions such as banks and rural credit cooperatives accounted for only 21% of the main financing channels, accounting for 7% of the main financing channels through small loan companies and pawnshops, and 22% of the small businesses had never had loans with the above financial institutions or individuals.

In addition, the rise of bank lending rates also brings pressure on small business financing.

According to the report, the bank's loan interest rate for small and medium-sized enterprises is about 30%, the annual interest rate reaches about 8%, the discount rate is raised to 4% to 5%, and the financing cost of small enterprises is further improved.

At present, in the Jiangsu and Zhejiang provinces, the cost of private lending has reached about 7-9 cents per month, and the interest rate of some annual loans is as high as 100%.

According to Xinhua news agency, 21, Fu Pingjiang, deputy director of Zhejiang banking regulatory bureau, pointed out that we must face up to the fact that in the past, "usury" existed between individuals and families in the society, and now it has entered the field of production, and has been normalized. "A fixed profit making system has been formed."

The consequences of such "usury" have emerged. The above-mentioned Xinhua News Agency reported that not only is Wenzhou, but recently, Xiamen, Shishi, Zhangzhou and Longyan have successively broken the chain of private lending funds in Fujian.

The way to support small businesses under tight money

According to the report, the impact of the government's prudent monetary policy and the strategy of curbing inflation is relative. Of course, small businesses do encounter some difficulties at present, such as raw material purchase no account period and finished product accounts receivable account extension, but this is the conduction effect after the tight credit of medium-sized enterprises.

A "pressure" "Zhang" may be a strategy that needs to be taken at present.

Xue Zhaofeng, a researcher and economist at the National Development Research Institute of Peking University, believes that at present, the financial policies of the country have made two strikes on SMEs. First, the introduction of inflation has led to the rising operating costs of small and medium-sized private enterprises. Two, the rigidity of bank financing policies has made it very difficult for enterprises to finance.

Xue Zhaofeng said that the solution is two pronged approach. First, we must improve the RMB exchange rate formation mechanism and decide the RMB exchange rate floating by market rather than policy. Secondly, we should relax the bank financing policy and improve the financing services for small and medium-sized private enterprises.

At the same time, tax burden of small and medium-sized enterprises should also be reduced to enhance their business vitality.

The report also proposes this solution.

"Financing can alleviate the current business difficulties faced by small businesses.

First, we should introduce a credit support policy for small businesses, encourage financial institutions specializing in small business credit to further increase financing services for small businesses, and strengthen supervision to achieve special risk management.

Two, we should innovate credit technology to enhance the service capacity and efficiency of small business credit.

Three, we should give preferential tax policies to small businesses and help small businesses reduce their operating costs.

The report says.

The report also suggests that the state further standardize the financial classification standard of small enterprises, clarify the financial institutions' supporting policies for small businesses, guide small businesses to standardize their finances and improve tax policies, speed up the construction of social credit system, innovate credit technologies, and make full use of credit data of small enterprises to assess credit risks of small businesses.