Small And Medium Enterprises That Survive Stubbornly Inside And Outside

Since 2007, the subprime mortgage crisis in the United States has increased the price of raw materials such as oil, grain, iron ore and so on. The appreciation of the renminbi has continued to rise, and even the domestic labor costs have risen.

A series of international and domestic factors have made China's economic development trend more complicated and confusing.

The earliest experience of such changes is undoubtedly a large number of small and medium-sized enterprises in China.

From the end of last year, the news of losses, discontinued production, relocation and bankruptcy of small and medium-sized enterprises has attracted the attention of all sectors of society. It has attracted the attention of many experts at home and abroad. Various speeches, analyses and suggestions have been published, hoping to grasp the pulse of China's economic development from the trend of SMEs and find the best way to solve the current development of the group.

The internal and external suffering has known the current situation of China's economy. Let's take a look at the actual situation of small and medium-sized enterprises. It doesn't make people feel "cold". Since last year, China's small and medium-sized enterprises have been struggling in the "internal" and "external" difficulties.

Internal: seeking loans without a door for the domestic economy is facing inflationary pressure, the state has adopted a tight monetary policy, most economists have expressed recognition and support, but in specific implementation, especially in raising interest rates and raising the deposit reserve ratio, there are very obvious differences.

So far, the central bank has raised the deposit reserve rate for 4 times in a row, from 14.5% to 16.5%.

Some experts estimate that if the deposit reserve ratio increases by 0.5%, it means that 200 billion of the funds will shrink. Then the 4 increase in the deposit reserve rate this year will reduce the total loan amount by about 800 billion.

In this regard, Yifu Lin believes that the negative role is far greater than the positive role, and the most important impact is that SMEs will be more difficult to get loans.

Pan Liang, a Southwest Securities analyst who shares the same view, said that raising interest rates was controlled by the flow of loans, and raising the deposit reserve ratio controls the total amount of loans.

Raising interest rates will increase the financing cost of enterprises. Only those enterprises with high profit margins and strong profitability can bear higher financing costs, so loans will automatically flow to high-quality enterprises that can effectively absorb cost pressures.

And raising the deposit reserve ratio will reduce the total amount of loans. Under this influence, banks will have to reduce loans to all enterprises, while SMEs will bear the brunt.

In addition, the compression of the loan volume may also create a "rent seeking" phenomenon in the loan resource field, so that the limited loan resources will be tilted to the "connected, connected" rather than "qualified and needed" enterprises, which will further aggravate the unreasonable allocation of loan resources.

Due to the difficulty of obtaining bank loans, the interest rates of private lending such as private associations, underground banks, private owners and other informal financial channels have also soared and even reached 100%, which has made the small and medium sized enterprises already very fragile capital chain worse.

Foreigner: because of the subprime mortgage crisis in the United States, the rise in prices of raw materials and appreciation of the renminbi, most of the importers are deferred payment and the cost of labor is raised, so that the profits of many small and medium-sized enterprises are reduced to the thinnest or even at a loss.

At the end of 2007, news of the collapse of shoe enterprises in the PRD region was heard.

According to the statistics of the footwear association of Asia, there were more than 1000 large and medium-sized shoe enterprises in the Pearl River Delta region.

In Dongguan, more than 1 / 5 of shoemaking enterprises have been closed.

There are more than 3000 shoe factories in Huidong, which are relatively concentrated in shoe enterprises. In two or three months, four hundred or five hundred small and medium-sized shoemaking and shoe factories have been closed.

At the beginning of 2008, the cold current began to blow to the Yangtze River Delta and Jiangsu and Zhejiang provinces.

According to Sun Xiuchun, Secretary General of China Association of small and medium enterprises, "the development of local SMEs is also facing great challenges. The average profit of many small and medium enterprises has dropped to below 5%. Some enterprises that are sensitive to the price of raw materials and export oriented enterprises are struggling."

Wenzhou, one of the most concentrated SMEs in China, is also feeling the "cold".

The latest statistics of Wenzhou foreign trade and Economic Cooperation Bureau show that the profit of the garment industry will drop by 4% when the RMB rises by 1%.

Other industries such as shoes, lighting appliances, pen industry and other industries, the average profit decreased by 5%, 6%, 10% or more.

This year, foreign trade enterprises at least 15% of the profits have been squeezed.

Because of the decline of the US economy and the reduction of the consumption power, some foreign trade products are facing the request of the American customers to cut prices. The price of the export products of Wenzhou's SMEs is squeezed, which aggravates the pressure of the small and medium-sized enterprises.

Zhou Dewen, President of the Wenzhou SME Development Association, once told reporters that at present, about 20% of the more than 30 SMEs in Wenzhou are in a state of shutdown or semi shutdown.

The small and medium-sized enterprises are facing the dilemma of finding money, which has attracted the attention of all parties. Experts have also made various suggestions.

But whether it is to adjust the structure, upgrade the industry, or go abroad, or even to maintain and survive, there is still one of the most important issues in the first place, that is, "money", where does the money come from?

Looking forward to "environment" in Wenzhou, Bao Shicong runs a small shoe factory with 300 employees. Because of the extended capital repatriation cycle, the profits he sells now are basically used to repay interest, and he needs to put some old books into it.

But Bao Shicong could not help insisting that "if we declare bankruptcy now, we really need to go back to the starting point."

This factory is my hard work for many years, and now I only expect to wait until the "environment improves".

People like Bao Shicong think many of the business owners of small and medium enterprises in our country, and the "environment" they hope mainly refers to the financing environment of small and medium enterprises.

To sum up, the financing difficulty of small and medium-sized enterprises is not a problem exposed this year or even in recent years, but has been widely concerned since the birth of SMEs.

However, despite the continuous introduction of a series of policies and measures, the problem has never been fundamentally improved.

According to the statistics of the people's Bank of China, the proportion of small and medium-sized enterprises obtaining bank credit support is low, accounting for only about 10% of all small and medium-sized enterprises.

According to the data provided by the China Banking Regulatory Commission, the current bank loans continue to concentrate on large customers, and SME loans account for only 16% of the loans of major financial institutions.

Why is that so?

Yifu Lin believes that this is related to the imperfections of China's current financial system. In the current domestic financial system, which is dominated by four state-owned commercial banks and supplemented by the stock market, SMEs can hardly benefit from it.

As for banks, because Chinese banks take four state-owned banks as the core, SMEs have two difficulties in obtaining financing. First, whether they are Chinese banks or foreign banks, the paction costs and audit costs of small loans are higher than those of large loans. The two is the lack of a sound credit system for individuals and enterprises in China. In order to reduce risks, banks usually require collateral, but SMEs usually lack proper collateral.

On the stock market, the threshold for financing in the stock and corporate bond market is very high. A large number of SMEs do not have the conditions for listing stock and bond financing. Secondly, information announces after listing and listing need to be paid at a low cost, which is not cost-effective for small and medium sized enterprises whose demand for funds is small.

Therefore, the stock market, especially the main board stock market, is hardly the source of financing for SMEs.

In response to this situation, Yifu Lin gave his own suggestions: first, the development of regional small and medium-sized banks.

Regional small and medium-sized banks, on the one hand, have no financial support for big projects of big enterprises. They can only support small projects in small and medium-sized enterprises. Moreover, regional small and medium-sized banks have information superiority compared with the branches of large banks in terms of their operating conditions, entrepreneurs' personalities and capabilities.

Two, we should develop private Guarantee Corporation to provide guarantee services for SMEs who lack collateral.

Three, we can set up a special government agency to support the development of small and medium-sized enterprises like foreign countries.

Speaking of "oneself", it is difficult for small and medium-sized enterprises to borrow money. Many people will accuse banks of "being poor and poor." but if objectively, in a sense, the reason for banks to stint loans is partly from SMEs themselves.

Wei Wei, general manager of HSBC SME financial services, said that banks will not give up any profitable potential business. If the business of SMEs is a win-win solution for banks and enterprises, there is no reason for banks to give up.

From the experience of banks, the risk of loans to large enterprises is not necessarily low, but the reality is that large enterprises can usually provide complete data to allow banks to do detailed risk assessment. Banks can know where risks are, so as to make financial plans and reduce risks.

"But in the process of small and medium enterprises loan, we usually encounter information asymmetry. Many small and medium-sized enterprises are not standardized, and their main posts are all relatives and friends. They like to use cash pactions not to enter accounts, and it is hard to find a formal financial statement. Even a lot of small and medium business owners are unwilling or unable to provide enough information to allow banks to make detailed assessments, and banks can only choose to leave without sufficient information."

In addition, many SMEs do not understand that the risk return ratio of banks is different from their own risk return ratios.

SME loans and big business loans are a bit like the relationship between retail business and wholesale business. If banks use the same methods and processes to deal with SME loans and big business loans, the cost of making loans to SMEs is relatively high.

Chen Zhiqiang, general manager of Zhongyang credit Company Limited by Guarantee, believes that "the most fundamental reason for the financing difficulties of SMEs is that enterprises will not finance, they do not understand banks, nor do they know their value in the capital market."

In his view, an enterprise should consider its own situation in the capital market. If you don't know yourself, you can hardly get a share in the capital market of the bank.

Financing enterprises must first consider what they have.

As for how to raise the success rate of bank financing, Chen Zhiqiang pointed out that the SMEs must avoid the "seven big injuries". First, the enterprises have bad records. Once they are listed on the blacklist, enterprises will never get financing in the bank; two, the owners of the enterprises have bad records; the three is the financial chaos of the enterprises; four, the assets and liabilities ratio of the enterprises can not exceed 70%; the five is the loss making enterprises, and many enterprises often make a loss report for tax evasion, but they give the bank the same statement, which looks very honest, but for the banks, the losses are bruising, it is impossible to give you loans; six is that the enterprises have no assets; seven is that there is no certain operation.

"None of these seven injuries is the first hurdle for SMEs to raise funds to banks."

Many choose "SME financing is not equal to SME loans. In other words, if SMEs have financing requirements, bank loans are not the only option". After pointing out the shortage of SMEs, district Wei Quan reminded them kindly.

Lin Rong, general manager of Shanghai Dao Bang Investment Limited, has more clearly stated that "the change of this consciousness is too important for small and medium-sized entrepreneurs to get rid of pure bank dependence."

He pointed out that, from the domestic capital market, the lowest risk and the highest threshold is the A stock board, followed by the small and medium-sized boards, the second is the gem, the second is OTC, which belong to the public offering category, followed by the private sector, such as PE, VC and other private equity funds.

It can be said that China's increasingly abundant financial products and fields are providing more and more financing channels for SMEs.

Among them, in the OTC market has not yet formally established, small and medium board listing and seeking private equity fund cooperation is currently one of the main ways of docking between SMEs and capital markets.

Coupled with the launch of the gem has entered the countdown stage, more and more technology innovation SMEs are expected to get financial support.

At the same time, the SFC is also vigorously developing the corporate bond market. Last year, 9 corporate bonds were issued.

In addition, CPPCC members during the "two sessions" this year also suggested that we should make full use of private capital, explore reasonable industrial fund mode, and even set up the "Chamber of Commerce fund", so that enterprises can form mutual supervision and mutual help "mutual insurance and joint guarantee" relationship.

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