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    Don'T Let Small And Medium Enterprises Fall Before Dawn.

    2011/10/12 13:46:00 37

    SME Export Orders


    Wenzhou boss's running road has attracted the attention of China's small and medium enterprises. The report released yesterday by the joint Alibaba of the National Development Research Institute of Peking University shows that small business owners are more pessimistic about the future than the 2008 financial crisis.


    72.45% of the surveyed enterprises expect no profit or a small loss in the next 6 months.


    The problem of raising funds for small and medium-sized enterprises, which has been running away from Wenzhou owners, has attracted the attention of the central and local governments. The Wenzhou municipal government yesterday launched a package of measures to prevent SMEs from breaking up the capital chain, and Wenzhou's banking industry also made a statement of "no money and no pressure on loans".

    However, the problem of small and medium enterprises' capital chain breaking, which was first introduced by Wenzhou, lies in the fact that the whole living environment of private enterprises is not good. If we only focus on capital, we can only play the role of headache and pain.


    The report shows that the most painful thing for SMEs is rising costs and falling profits.

    Order

    Atrophy is a direct blow to the export oriented SMEs.

    According to statistics, the profit of small businesses has declined sharply this year. Compared with 2010, the average profit has decreased by 30% to 40%, and business difficulties have increased.

    At the same time, the cost of raw materials in most industries increased by about 20% to 50% compared with that in 2010. The prices of raw materials and fabrics in the clothing industry even increased by 30% to 80%; the wages of small enterprises in the PRD region increased by 20% to 30% compared to 2010, and the wages of some senior technicians increased by more than 100%.


    Rising raw materials and rising labor costs are the result of global inflation. Some agricultural products such as cotton and sugar began to rise as early as 2008, some began to rise in the middle of 2010, and nonferrous metals began to rise continuously since 2009.


    The rise of raw materials is bound to bring huge cost pressures to SMEs.

    The cost of manpower has also been increasing since recent years. On the one hand, it is related to the low wages, and on the other hand, it is also related to rising prices.

    Raw material

    As well as the rising cost of manpower, both the global financial crisis and the domestic monetary and fiscal policies, only small and medium-sized enterprises can effectively protect their policies in order to protect SMEs from falling into crisis.


    China's small and medium-sized enterprises are mostly processing enterprises, without scientific and technological content, mainly rely on low cost of labor to win, but with the rise of inflation, the advantages of low labor costs have gradually reduced.

    According to an American report, the trend of us enterprises returning from China to the US has already emerged. The main reason is the low efficiency of labor and the rapid growth of human cost.

    Therefore, China urgently needs to help small and medium-sized enterprises to pform, such as supporting production for large enterprises, improving production efficiency in the field of subdivision, gaining competitive advantage, or pforming to service industry, increasing the share of service industry in GDP.

    This requires not only support from the government in financing, but also from the central enterprises.

    Purchase

    To the sales link, more SMEs will be introduced into the industrial chain.


    Recently, due to the involvement of the government and banks, the boss of Wenzhou running road has returned to the enterprise for reorganization, and is expected to get a new lease of life from the government's help.

    But this kind of help can only stop at the help of funds, and it is also aimed at larger SMEs and private enterprises, and can not provide more help to small and medium enterprises, especially small businesses.


    China's economy is in pition, and industrial pformation relies mainly on the flexibility and enterprising spirit of small and medium-sized enterprises and private enterprises.

    The government should provide more financing, tax reduction and other support to SMEs, so as not to let these SMEs fall down in the early stage of industrial pformation.

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