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    Face Up To The Survival Situation Of Small And Medium Shoe Enterprises Is To Attach Importance To People'S Livelihood.

    2007/12/14 0:00:00 10422

    Small And Medium-Sized Enterprises

    Private small and medium-sized enterprises have never been paid attention to, which is also a trace of reality left by the reform.

    The plight of small and medium enterprises (SMEs) is currently faced with a series of problems, such as raising the core competitiveness of enterprises or the burst of technological innovation.

    National policy has been tilted in large enterprises and monopolies.

    They can obtain huge loans from state-owned and large commercial banks through unconventional and non market competition, and they can openly provoke people's livelihood, such as oil, natural gas, electricity, water and other related materials that are related to the interests of people's lives. When they want to rise in price and when they are going to rise in price and hide their skin, they can cry out that they are losing money. In essence, they are not aware of whether they lose money or not, and the annual salary of executives is only as high as millions of dollars.

    For example, as for the excess liquidity problem, in fact, there is no money in the general public, and the money is in the state-owned monopoly enterprises and real estate industry. Conversely, the state's interest rate control does not necessarily alleviate the problem of excess liquidity in the market. The negative effect is that it has a strong lethality for the current capital lifeline of small and medium-sized enterprises.

    Does asset price rise affect enterprise investment cost?

    First, in November 16th, the national fixed assets investment data released by the National Bureau of statistics 1~10 month show that China's urban fixed asset investment and real estate investment are showing a warming trend again.

    In 1~10 months, the investment in fixed assets in China's cities grew by 26.9% over the same period last year, up 0.5 percentage points over that of 1~9.

    Meanwhile, the central bank's financial performance report shows that the number of new loans in financial institutions increased significantly in October, up by 119 billion 200 million yuan compared with the same period last year, and the new loans were mainly invested in the medium and long term loans and housing consumption loans which are closely related to the investment in fixed assets.

    The two report seems to be in a different direction.

    In October, when bank lending increased significantly, most of them went to the real estate industry which was concerned by industrial policy regulation.

    (according to the November 27th China real estate report) asset prices rose, boosting house prices and rising stock prices.

    Take the real estate industry as an example, in Forbes's Asia 2007 China rich list, 40 people in the list are over 1 billion dollars.

    Among them, 15 real estate developers ranked the 40 richest list this year.

    The reason for this is that Forbes claims to have been caused by rising asset prices.

    This problem is not difficult to understand, through the capital market to enlarge the wealth of listed housing enterprises, further engage in "enclosure movement" to promote land prices.

    These two points all highlight the imbalance of China's investment structure and the factors that will aggravate the burden of SMEs.

    No matter from the rise of energy or resource prices or the difficulty of financing from tight money, some people say that many small and medium enterprises are getting money from "underground banks". But the problem is that with the social and economic instability and the adjustment of the financial system, the "loan" is also rising.

    On the other hand, the survival of SMEs is not optimistic.

    I have pointed out that under such circumstances, there are three paths for small and medium-sized enterprises to go: first, to reduce workers' salaries (probably not, after all, China has no advantage in terms of cheap labor force); two, to cut corners or produce inferior quality products in the production process, which is a matter of self defeating. If an enterprise really does, sooner or later, one day it will be self defeating.

    Then the third way is that those enterprises that can not survive can only go bankrupt or go bankrupt.

    In December 10, 2007, CCTV "economic half-hour" broadcast "thousands of business failures in the Pearl River Delta survey: the rise in costs leads to the relocation of enterprises".

    It is reported that there are about five thousand or six thousand shoe factories in Guangdong. There are more than 1000 large and medium sized shoe factories in Guangdong. For example, in Huidong, it has more than 3000 shoe factories. In two or three months, the small and medium-sized factories have closed four hundred or five hundred.

    The Pearl River Delta region has encountered difficulties not only in shoemaking enterprises, but also in other labor-intensive industries such as clothing manufacturing, toy processing, electronic processing and so on. Many enterprises have begun to move out and some have gone bankrupt.

    In the words of the economic half-hour, the Pearl River Delta has dominated the Chinese economy for many years. However, after many years of rapid growth, the manufacturing sector has suffered from labor shortage, electricity shortage and oil shortage in recent years. The price of land, labor and energy has risen sharply. In the international market, with the appreciation of the RMB and the implementation of trade protection in some countries, the competitiveness of these enterprises in the Pearl River Delta has been severely challenged.

    Needless to say, the pressure of rising costs is the main factor leading to bankruptcy or bankruptcy of SMEs.

    As the Pearl River Delta Economic Zone, China's largest manual and processing base not only raised many workers, but also contributed to China's economic development.

    The business atmosphere here is not completed overnight. Its natural environment, human factors and business atmosphere (industry matching) are hard to replace or imitate in any region.

    However, looking at it, today's PRD is no longer what it used to be. Its current situation is a metaphor for the great change or crisis of China's economy.

    If so, what is the main force of China's economy besides state-owned monopolies?

    In addition to the large number of jobs offered by these small and medium-sized enterprises, what will China improve employment rate?

    If the above two conditions are not certain, the largest number of jobs in China is SMEs, which means that most of China's labor force gets paid in small and medium-sized enterprises.

    According to the distribution map of China's economic structure, such as "Pyramid", there are very few state monopoly enterprises at the top, and these small and medium-sized enterprises are at the huge bottom. According to China's income distribution structure chart, such as "Pyramid", a few people are rich, most of them are at the bottom of Pyramid.

    If, when small and medium-sized enterprises are in a predicament of survival, how can we raise the income of most of these low-income groups?

    When small and medium-sized enterprises collapse in large areas, does not mean that most of China's people are unemployed and unemployed?

    As a result, China's environment does not need to be analyzed too much. The survival of SMEs is the most important factor in China's social and economic stability, such as employment and income distribution.

    How to solve the problem of relying on cheap labor to maintain the survival of small and medium-sized enterprises, especially those in the labor-intensive economic areas, should be considered by the government at present.

    Such as tax reduction or tax reduction, as for the improvement of labor remuneration, the employers and the labor parties themselves can be resolved by the relevant labor laws and regulations, and giving workers the right to strike. In the current situation of the Pearl River Delta, the era of relying on cheap labor has gone for ever. The "labor shortage" is the result of market regulation. This gives the government managers a good inspiration, so there is no need for the government departments to work hard, but the effect is basically no better.

    All of the above prove that facing the survival status of small and medium-sized enterprises is a piece of the current macroeconomic regulation and control of government departments.

    Facing the plight of SMEs is undoubtedly the key to the sustainable development of China's economy and the real solution to people's livelihood.

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