Should The Government Pay For The Running Enterprises In Wenzhou?

Following the survey of small businesses in the Yangtze River Delta, the National Development Research Institute of Peking University released a report on the survival of small businesses in the Pearl River Delta yesterday. The sharp rise in costs of raw materials and labor has become the biggest trouble for small businesses. The average profit margin has dropped 30% to 40% over the same period this year, while the average operating rate has dropped to 70%.

The survey data from 2889 Pearl River Delta enterprises network research, as well as Guangzhou, Shenzhen, Dongguan On the spot visits of 95 small businesses, 11 professional markets and 15 local financial institutions in the 6 cities of the Pearl River Delta region, the size of the enterprises surveyed is generally below 30 million yuan in annual sales, of which 60% of annual sales are less than 5 million yuan.

　 Average profit reduced by three or four.

Although public opinion is more concerned about small and medium enterprises financing Difficult problem, but from the survey results, the rise in cost leads to profit decline is the "sharp edge" hanging on small businesses. Compared with last year, the average profits of small businesses in the PRD decreased by 30%-40%. Among them, 72.48% of small businesses say that the cost of raw materials is the biggest difficulty at present, and the cost of most raw materials is about 20%-50% higher than that of last year.

According to Dongguan joy Art Clothes & Accessories Feng Jiang, the head of the company, revealed that the price of raw materials and fabrics in the clothing industry has risen by 30%-80% this year. "In the past, the cost price of all cotton sweater fabrics was 25 yuan, up to 45 yuan this year. The cost of the cotton T-shirt fabric in previous years was 5 yuan -8 yuan, now it rises to 10 yuan -15 yuan." The rise in costs has led to less than 5% of the average profit margin of small processing enterprises with "three to one supplement". The overall profitability is reduced by about 40% compared with last year.

Labor cost is also an important factor that can not be ignored. According to the survey report, the wages of small enterprises in the Pearl River Delta region increased by 20%-30% compared with last year, and some senior technicians increased by more than 100%. At present, the average monthly salary of ordinary workers is 2000 yuan -3000 yuan, skilled workers can reach 4000 yuan -5000 yuan, and skilled workers are higher. The person in charge of the furniture factory of Dongsheng town of Zhongshan City revealed that "the two time salary adjustment has been added to the overtime pay of employees, and now we can only rely on salary adjustment to prevent employees from leaving." Of the thousands of small businesses interviewed, 52.44% of the enterprises listed labor costs as one of the three major predicaments faced by the current enterprises, second only to the rising cost of raw materials.

　 The average operating rate is only 70%.

While the cost is rising, the shrinking of orders makes small businesses more difficult. The report shows that the Pearl River Delta SME orders fell by about 30% compared with 2010. Under the influence of the European debt and the US debt crisis, the reduction of orders from the European and American markets has a greater impact on the small Pearl River Delta enterprises, which are mainly export-oriented economies. In addition, factors such as rising production costs and appreciation of the renminbi have reduced the export competitiveness of small businesses in the Pearl River Delta region.

Orders are decreasing, and the operating rate of small businesses has also declined. The average operating rate in 2011 was only 70.92%. "Although the operating rate has been decreasing, the phenomenon of" small businesses' closing down "has not appeared on a large scale. In the face of difficulties, most of the enterprises with low operating rate are mainly thin, rather than closed factories. After the impact of the financial crisis in 2008, many small businesses in the Pearl River Delta have a sense of crisis. Some small businesses have adjusted the strategy of stocking and ordering raw materials. In order to prevent RMB appreciation and domestic raw material price fluctuations, some small businesses have broken up big orders into small orders, so as to shorten the production cycle and concentrate their efforts on orders with shorter settlement periods to control profits. Hu Xiaoming analysis said.

　 Wenzhou private enterprises run hard to replicate

In this survey, the annual sales volume of most enterprises is less than 30 million yuan, and the number of workers is generally less than 100. "Enterprises of this size are also the disadvantaged groups in bank credit business." Hu Xiaoming said frankly, compared with the small businesses in the Yangtze River Delta, the PRD enterprises are more cautious in financing. "53.03% of the small businesses in the Pearl River Delta have never used any external financing, and more often rely on the accumulation of business for many years." According to reporters' data, only 22% of SMEs in the Yangtze River Delta have never experienced lending activities.

Experts who take part in the survey believe that it is difficult to replicate the "run away" tide of private enterprises in Wenzhou at present. "According to the survey, Wenzhou's" run road "enterprises basically rely on private usury to carry out speculation in land, real estate, stock and so on, and the scale of lending is more than ten billion yuan. In fact, the collapse of small businesses has not happened because of the economic situation. " {page_break}

　　 The top three predicaments facing enterprises

Rising cost of raw materials

The proportion of enterprises to date since 2010

72.48%

Proportion of enterprises before 2010

60.68%

Comparative growth

11.80%

Rising labor costs

The proportion of enterprises to date since 2010

52.44%

Proportion of enterprises before 2010

45.66%

Comparative growth

6.78%

Less orders or orders.

The proportion of enterprises to date since 2010

45.146%

Proportion of enterprises before 2010

45.03%

　 Comparative growth

0.10%

　　 expert

Zhou Qiren: the government should not pay for Wenzhou running enterprises.

Zhou Qiren, Dean of the National Development Research Institute of Peking University, believes that the risk of international economic downturn is increasing. The tail of domestic inflation is still shaking. The small enterprises without pricing power will be particularly difficult. It is worth noting that many people put small business financing difficulties in the first place, but in fact, labor, materials and other costs rise too fast is the first.

However, we can not start a monetary leading company because of the low operating rate of some small businesses. Wenzhou's running enterprises are not really industrial enterprises, but in the previous years of high inflation, there have been some opportunistic opportunities. They have mobilized a large amount of capital into investment, and once the bubble burst, there will be problems. At this point, even if we increase capital investment, we will not really go to small and medium-sized enterprises. If there is no difficulty in lending money to every small business, what will happen to labor costs and prices in society? Therefore, it is necessary to guide the limited amount of money to small businesses under the premise of sound money. At the same time, compared with loans, it is more important to reduce the tax burden of small businesses.