China Entrepreneur Survey System Report Reveals &Nbsp; Enterprises Are Facing Five Difficulties At Present.

What is the biggest difficulty faced by Chinese enterprises in the complex environment at home and abroad? "The judgement, problems and suggestions of the business operators on the macro situation and the operation of enterprises" recently released by the Chinese entrepreneur survey system, 2011.

Difficulty 1: rising costs

With regard to the major difficulties encountered in the current business development, the survey shows that enterprises with "rising labor costs" and "rising energy and raw material costs" have been selected.

Regarding the labor cost of enterprises, the survey shows that 97.4% of the operators think the "rise" is 97.2, and the "rise" is more than 97.2 percentage points lower than the "decline", which is 3.4 percentage points higher than that of the survey in 2010.

With regard to the material purchase price of enterprises, the survey showed that the "rising" business operators accounted for 85.2%, and that the "rise" was 81.6 percentage points more than the "decline", which was 7.4 percentage points higher than the results of the 2010 survey.

Difficulty two: taxes and fees are heavier.

While the cost is rising, business operators generally reflect the heavy burden of current taxes and fees.

The results of the survey show that

As for enterprises over the past year, they have paid the proportion of fees, fundraising and apportionment to enterprises' sales revenue to governments at all levels. The survey results show that the enterprises that choose "5% or more" account for 3.7% of the total, and the proportion of 1% to 5% accounts for 17.2%. The total proportion of the two enterprises has increased by 4.6 percentage points over 2010, which is 9.4 percentage points higher than that in 2009.

Difficulty three: profit reduction

With the increase of cost and the heavy burden of taxes and fees, the profit margins of enterprises are also shrinking.

The survey results show that nearly 40% of business operators think that the "low profit margin" is the most difficult problem encountered in the current business development.

At the same time, the survey also found that the current profit "below normal" business accounted for 54.7%, an increase of 18.5 percentage points from 2010, 42.1% of profit "normal", "better than normal" accounted for 3.2%.

Among them, the profitability of enterprises in the eastern region, small businesses, private enterprises, and foreign and Hong Kong, Macao and Taiwan investment enterprises is relatively poor.

From different industries, the profitability of textile, rubber and plastics industries is relatively poor. The proportion of earnings below normal is over 70%, while mining, information pmission, computer services, software and real estate industries are relatively good, with more than 60% of "normal" or "better than normal" businesses.

Difficulty four: financial strain

Under the current tight monetary policy background, financing difficulties, especially the financing difficulties of SMEs are prominent.

With regard to the ease of loans from banks, the survey results showed that 48.4% of the operators considered "very difficult" or "more difficult" accounted for 29.8% of the "difficult" loans.

When the bank loan is very difficult, many enterprises also need to pay extra fees beyond the prescribed interest rate.

According to the survey results, the number of business operators who choose "many" or "more" accounts for 31.1% of the "extra cost of paying interest from the bank loan", which is nearly 10 percentage points higher than that in 2010.

Small and medium-sized enterprises also have more serious financial worries.

According to the survey, 46.3% and 51.3% of the medium and small enterprises with "tight funds" are 39.1 and 46.3 percentage points more than those of "capital" respectively, which is more than 15 percentage points higher than that in 2010.

The increase of accounts receivable is one of the important reasons for the shortage of funds in enterprises.

According to the survey, accounts receivable higher than normal accounted for 25.8% of the enterprises, 13.5% of them were below normal, and the former was 12.3 percentage points higher than the latter, which was higher than that in 2010, 2009 and 2008.

Difficulty five: the external environment is worrying.

The survey found that the evaluation of business operators' external business environment also declined, and development momentum and confidence were insufficient.

The comprehensive evaluation value of the external business environment of local enterprises is obviously lower than that of 2010.

With regard to the statement that "the international economic situation will deteriorate in the coming year", more than 60% of the business operators expressed "more agreement" or "very much agreement". For the "many entrepreneurs' lack of confidence in further deepening market reform", 59% of the "very similar" or "more agreed" business operators accounted for 59%.

Faced with the current difficulties and challenges, many enterprises have indicated that a series of effective measures such as strengthening management and structural adjustment should be adopted to promote the growth of enterprises under pressure.

However, the managers think that the external environment of the enterprise operation has a great influence on the motivation of the business operators to develop the enterprises, and at the same time, it has restricted the enterprises to increase their investment in innovation, especially the long-term investment.

Business operators hope that the government will further deepen the reform of the economic system, speed up the construction of the rule of law and service oriented government, reduce the government's intervention in micro economic activities, actively promote the reform of fiscal and taxation system and the reform of monopoly industries, and create an external environment conducive to continuous innovation and development of enterprises.