The "Death Tide" Of Smes

In July 21st, led by the Henan provincial Party committee and the provincial government, the 5 research teams organized by Henan SME Bureau went to Luoyang, Luohe and other provincial cities. The task of this trip is to investigate the development and Countermeasures of Henan's small and medium-sized enterprises.

The scale of research and Research on SMEs is unprecedented and unprecedented.

Here is a big background: in the 6 days of from July 3rd to 8th, the top leaders of the national vice president Xi Jinping, Premier Wen Jiabao and vice premier Li Keqiang of the State Council went to Jiangsu, Shanghai, Guangdong, Zhejiang, Shandong and other five provinces and municipalities to investigate.

At the same time, the relevant departments of the Ministry of Commerce and the State Administration of taxation have taken full actions.

The attention of state leaders highlights the seriousness of the survival crisis of small and medium-sized enterprises.

The "death tide" of small and medium-sized enterprises has gone through waves since the end of 2007.

There are not only "Guangdong bankrupt enterprises nearly 10000", but also because of the sudden collapse of business operations, enterprises began to be staged in Shanghai, Jiangsu and Zhejiang.

Half stop production, stop production and collapse have also become the predicament faced by enterprises in the Yangtze River Delta.

According to media reports, recently, Zhejiang, which has a good industrial upgrading, is beginning to frequent the phenomenon of "abnormal bankruptcy" and "running away" by the boss.

And most of the owners fled after paying a lot of salaries, loans and bank debts.

According to a report released by Deutsche Bank on the southeastern coastal areas of China, 20% of the small and medium-sized export enterprises producing low-end products will be closed down this year.

In reality, this is not only a phenomenon in the southeast coastal area.

The wave of corporate bankruptcies is coming from south to North and spreading throughout China.

In 2008, it was even called "life saving year" for small and medium-sized enterprises.

In early 2008, the collapse of Huaqiang Plastic Co., Ltd., China's largest plastic bag factory in Suiping County, Henan, attracted nationwide attention.

In July 14th, the Henan entry-exit inspection and Quarantine Bureau released the analysis report of clothing export in the first half of 2008 in Henan Province, showing that the clothing export in Henan has declined for the first time after 17 consecutive years of continuous growth.

Behind the decline in export growth is the test of the pressure on enterprises to survive.

Ban Yu is a salesperson engaged in textile machinery accessories sales. Since the end of 2007, her business has declined sharply.

"Orders are reduced, and repayment is difficult."

She said.

The reduction of spare parts order is due to the difficulty of textile enterprises.

"Enterprise funds are difficult, triangle debts increase, and a large number of enterprises reduce production or stop production."

Some of her clients, some originally planned to expand their scale, were put on the side of the new equipment and were not installed.

"Textile companies of a very large scale have now been discontinued."

She introduced.

Due to the impact of the textile industry, ban Yu's textile machinery parts company is also on the decline. Her familiar counterparts are changing careers, and she has begun to consider the issue of pfer.

"The profits of textile exporting enterprises in Henan generally do not exceed 5%, most of which are around 3%. Under the impact of trade barriers and subprime crisis, meager profits are also facing a shrinking crisis. Small businesses can only survive in cracks."

Li Guosong, director of Henan textile industry office, said.

The plight of the textile industry is only a microcosm of the entire export industry.

In the short period of six months, the Henan ceramic export industry, which once operated well, has been on the decline. Half of the enterprises are facing a dilemma of losing money or even stopping production.

With the collapse of domestic enterprises and bankruptcy, foreign-funded enterprises have fled.

At the end of 2007, hundreds of Korean enterprises in Qingdao, Shandong, fled naked, leaving the debt and hundreds of thousands of Chinese workers at a loss.

Recently, a survey conducted by the Federation of Chinese manufacturers in Hongkong also showed that 20% of the Hong Kong businessmen in the Pearl River Delta planned to close factories or abandon production businesses, and thousands of Hong Kong funded enterprises in the Pearl River Delta would be closed down.

The three big policy became the fuse that led to the enterprise's "life and death robbery", which was the three major policies promulgated after the Spring Festival in 2008.

The first is the new labor contract law, which has greatly increased domestic labor costs.

After the implementation of the labor contract law, the risk and cost of employing enterprises increased. In the past, enterprises that took advantage of cheap labor as competitive advantage were hit hard.

"Enterprise upgrading has not been completed, competitiveness has not been realized, and the advantage of abruptly cutting off cheap labor is like falling from high altitude."

Professor Chen Guangming, chief consultant of Jin Ce Management Consulting China Ltd.

The two is due to domestic macro regulation and monetary tightening.

The state has continuously raised the reserve ratio of banks and reduced the scale of loans, which has led to the difficulties in financing and financing for small and medium-sized enterprises.

The three is a substantial appreciation of the renminbi.

Since July 21, 2005, the RMB has appreciated by 21% over the past three years.

This directly caused the death and death of export enterprises.

The original profit was completely offset, even negative, in exchange rate movements.

Some enterprises are still losing profits when they pay the bill, and they lose money when they check the bill, which reflects the speed of RMB appreciation.

Unable to digest the pressure of RMB appreciation, the only channel left is the pformation of industries or the relocation of industries. Enterprises that fail to pform their strength and do not want to move out only choose to go bankrupt.

In the increasingly tense domestic environment, for Chinese enterprises, the rising price of raw materials caused by international oil is exacerbated.

"These are just the fuse, intensifying the contradiction."

Chen Guangming thinks.

The contradiction is deep-rooted "too late."

For the nationwide survey of small and medium-sized enterprises vigorously, Chen Guangming said.

He was a professor at Henan University of Finance and Economics and later founded a consulting firm serving small and medium-sized enterprises.

At the same time, it is also a member of the small and medium enterprises research group organized by Henan province.

"The problems in the development of SMEs are deep-rooted."

In his eyes, compared with the state-owned enterprises supported by the government, most SMEs belonging to private enterprises do not rely on them and have no resources. Under the background of imperfect laws and incomplete system reform, some gray areas make private enterprises run thin ice.

Compared with foreign-funded enterprises which are popular with local governments, SMEs in domestic enterprises are far from their treatment.

Take tax policy as an example.

Before 2008, domestic enterprises had been paying 33% of the high tax rate, while foreign production enterprises were generally 24% or 15%.

Until the implementation of the enterprise income tax law in January 1, 2008, the tax rate of domestic enterprises and foreign-funded enterprises was unified to 25%.

Financing is another important threshold for the development of small and medium-sized enterprises.

China has less financing channels, less developed venture capital and imperfect bond market. Listing is one of the most important ways of financing.

However, small and medium-sized enterprises are generally small in scale and have a high threshold for listing in China.

The planned gem has not yet come out.

Some small and medium enterprises are not expected to be listed.

In addition, the state has strict control over private lending and has become an illegal fund-raising.

For enterprises, there is only bank loans, which is the way of financing for most enterprises.

However, because of the low credit rating, imperfect financial system, insufficient effective assets for mortgage, imperfect guarantee system and so on, bank loans are also very difficult.

At the end of 2007, due to the impact of the camel footwear industry in Xuchang city of Henan Province, the business crisis of a series of enterprises such as Yongxing Copper Group Co., Ltd. was triggered. Dozens of enterprises such as Hongwei industrial group and Hongteng Industrial Company were brought to court.

Almost exactly the same thing. In 2008, the business crisis of Henan Huitong Food Co., Ltd. in Luohe also came from the guarantee chain, and it was also pmitted among many enterprises.

Fortunately, the local government made a rescue effort before making bad effects.

"Spider web guarantee chain has its drawbacks and risks, but this is the inevitable choice for SMEs."

An entrepreneur gave his voice to reporters.

Small and medium-sized enterprises financing problems can be seen.

"Even without the new" labor contract law ", without the appreciation of the RMB, the reality of private enterprises have been squeezed out of nowhere to hide.

Contradictions will come out sooner or later, sooner or later. "

Chen Guangming said.