Pearl River Delta Survey: Internal And External Financing Difficulties, Smes Hard Core

In Jinjiang, Fujian, there are many large enterprises such as the seven wolves, Anta and SBS, but there are also more and more small and medium-sized enterprises that are spread all over the towns and villages. In the most difficult year of 2011, their living environment is deteriorating and they are struggling.

When interviewed by local clothing manufacturers in Jinjiang, many factories were small, mostly small businesses. A company named Chuang Huang clothing and Weaving Co., Ltd., the head of the enterprise, said: "such small businesses have several families in our village, and basically are family businesses. They have been doing this kind of business for more than ten years, and have experienced various kinds of ups and downs."

Reporters learned that, due to financing difficulties, Labor cost With the increase of the price of raw materials and other factors, the small and medium-sized enterprises are facing a new dilemma of survival since the financial crisis in 2008. Many small and medium-sized enterprises are suffering from unhappiness.

In the 3 provinces of Fujian, Guangdong and Zhejiang, there are more export-oriented enterprises. Taking Zhejiang as an example, the 70%-80% in the economic component is mainly affected by the global economic downturn, and the order is obviously reduced, so the impact is also the biggest.

Not long ago, the 2011APEC SME summit was held in Chengdu. At the meeting, Gu Shengzu, the Standing Committee of the National People's Congress, vice chairman of the National People's Congress judicial committee and vice chairman of the Central Committee of the people's Republic of China, also confirmed the difficulties of the small and medium-sized enterprises. He said: "I think our small and medium-sized enterprises are facing serious difficulties in survival. Now, 10% of our small and medium enterprises are upgrading. About 20% of the enterprises may be in spanition. A large number of enterprises, 60%-70% enterprises are facing serious survival difficulties."

And the Chinese industry was held recently. economical operation Huang Libin, deputy director of the monitoring and Coordination Bureau of the Ministry of industry and commerce, revealed that the operation of the above scale enterprises was in good condition, but the difficulties of small and micro enterprises intensified. In 1-7 months, in 310 thousand enterprises above Designated Size, the number of loss making enterprises was 40 thousand, and the deficit was 12.7%. There is little change in the monthly deficit area. But it is worth noting that the extent of corporate losses is increasing month by month: the deficit growth of deficit companies has increased from 1-2 in 22.2% to 41.6% in 1-6, and then further to 46.9% in 1-7 months. Small and micro enterprises are facing greater difficulties because of their weak ability to resist risks. The profit margin of Enterprises above designated size is about 6%, and the overall profit margin of SMEs is less than 3%.

"Money shortage": internal and external financing

For most SME owners, the most difficult problem is the capital problem. Since the beginning of this year, there has been structural "money shortage" in the whole country, which has led to the financing difficulties of small and medium-sized enterprises.

The owner of Chuang Huang clothing and Weaving Co., Ltd. said: "after the banks have tightened their money, the shortage of credit resources has forced many small and medium-sized enterprises to turn to private lending funds, and the interest rate of private lending raised by these small and medium-sized enterprises has brought unprecedented challenges to the capital chain of SMEs. The rising cost of financing has made the small and medium-sized enterprises who are already under multiple pressures even more breathless.

Because of the difficulty of financing, many bosses have to choose usury. Although it solved the urgent need, it soon fell into a more serious "shortage of money" dilemma.

In the near term, frequent usury run events. Since the beginning of April this year, there have been more obvious "run away" events in Zhejiang, Wenzhou, Taizhou, Quzhou and Ningbo, especially in Wenzhou. According to incomplete statistics, in August, there were at least 20 more borrowers in Wenzhou.

Why do the bosses of private enterprises have to be forced to "run"? According to the reporters, there are many small and medium-sized enterprises whose profit margins are lower than the loan interest rates. This situation has made many small and medium-sized private enterprises bosses overwhelmed by heavy burden, and the choice of "running the road" is also forced to be helpless. After all, no one wants to give up his own business.

Zhou Dewen, vice chairman of the Central Committee for economic development, vice president of China SME Association and President of Wenzhou SME Development Association, said in a media interview that the profit margin of small and medium enterprises is lower than the loan interest rate. The actual borrowing cost of enterprises has reached 100% or higher, and the profit rate is only 3%-5%.

Zhou Dewen is pessimistic, if the external environment is not changed, in the second half of this year, 40% of the domestic stock of small and medium enterprises will halt, stop production or even go bankrupt.

The financing difficulty of small and medium-sized enterprises is a worldwide problem. Compared with large enterprises, the huge gap between financing costs makes the problem more difficult in China. Once funds become market scarce commodities, SMEs will be "regulated" first. {page_break}

Chuang Huang clothing boss told reporters that the current small and medium-sized enterprises operating difficulties have two aspects: internal and external causes. From the outside, government departments' support for SMEs is not enough. The imbalances in banking system and policies directly affect the channels for bank loans and direct financing. In the interior, SMEs' competitiveness in terms of innovation and human capital is not strong enough, which makes SMEs' credit financing channels unsmooth.

Capital side: trying to finance cooperation among enterprises

Some bankers say that because of the lack of credit in some small and medium-sized enterprises, the lack of integrity system, the problem of default and non repayment, banks are reluctant to lend to SMEs. However, under the current system, banks do not consider the characteristics of SMEs and their financing in terms of rating criteria, risk classifications, mortgage conditions, and charging standards.

Faced with such a situation, when the capital chain is extremely tense, many small and medium enterprises' bosses have to choose private capital loans.

A local business owner in Jinjiang told reporters: "in general, when businesses need to borrow money, they often receive new big ones. Order When the old order is not yet in place, a cash flow is needed to purchase raw materials for new production. And because of the difficulty of lending to banks, companies generally turn their attention to private lending.

According to the reporter, many small and medium enterprises in Fujian are considering the use of private lending to ease the problem of capital turnover. The reason is very simple, because local enterprises, private lending procedures are relatively simple.

But after all, the interest rate of private capital lending is relatively high. Private capital is not a panacea for enterprises whose ability to repay loans is weak.

Chuang Huang clothing owners said that if the gap is large, it is also one way to borrow money from other local businesses. For small and medium sized coastal enterprises, a small scale, similar to industrial district relationship can be formed among several neighboring villages and towns. It can bring small capital flow and can also help nearby enterprises. Business between enterprises can also help each other. Orders can also be entrusted to other enterprises to help. This may be a feasible new method.

For small and medium-sized enterprises in the difficult situation, some experts have made the following suggestions: first, we should clarify the relationship between financing channels and funds, do the main business and unload the sideline; second, we should use the funds to the key issues, such as raw materials, workers' wages, management and logistics. Three, we should use domestic and foreign customers and financing channels to reduce the inventory, reclaim the funds as soon as possible, and increase the sales promotion efforts; fourth, we should spend more energy on the collection of accounts receivable; fifth, we must work closely with the local government to get strong financial support, such as boosting sales, guarantees, and collecting money, etc..

Difficulty in employment: boss's priority in ensuring employee rights and interests

After the Spring Festival every year, it is time for small and medium-sized coastal enterprises to make "labor shortage". Chuang Huang clothing boss said that the beginning of each year is not good to recruit employees has become a common phenomenon, since 2008, this phenomenon is more serious, do not know how many small and medium-sized enterprises in the case of staff shortage slowly decline.

In the interview, the reporter learned that the problem of small and medium enterprises employment is mainly stuck in wages and benefits. A worker from Hunan told reporters: "now things are more expensive than before, and children spend a lot of money on school. If you can't earn more money, there's no point in going out to work. "

A shoe factory owner told reporters that in order to retain workers, they would receive an appropriate salary increase every year and reward excellent employees. Besides, it is necessary to provide good accommodation conditions.

To retain staff, Chuang Huang clothing boss also wanted many ways. He said: "last Spring Festival has not yet started. After settling the salaries of the employees for a year, our company has actively started the work of recruiting workers, in addition to retaining the hearts of the old staff, we also need to recruit new employees. After all, employees are unable to come back to work for various reasons, and we can only fill these vacancies. "

He also said: "in general, we will discuss with the team leader about a series of problems such as retention and retention, salary and so on. For employees who have decided to continue to work here next year, they will sign contracts with them; for employees who are not sure next year, try to retain them; for employees who are not coming next year, they will settle the annual salary accurately and leave a contact way. Through advertising campaigns, employees can be recruited and recruited by local staff to fill these vacancies through introducing staff members and introducing contacts among entrepreneurs.

Some experts said that under the situation of business difficulties, business owners should give priority to protecting the rights and interests of workers, and ensure workers' social security and improve their living conditions, such as accommodation environment, catering environment and so on. To a certain extent, enterprises should also enrich the leisure life and entertainment life of workers, such as sports facilities and entertainment facilities. It is also necessary to solve their practical problems from the perspective of humane care and respect, so that migrant workers can feel a sense of accomplishment and respect for themselves.

　　 enterprise Transformation It is hard to do and must be done.

After visiting some small and medium-sized enterprises, reporters found that the biggest headache for business owners is the market problem. After the financial crisis, under the dual pressure of market shrinkage and RMB appreciation, export enterprises have been seriously affected. The road of export is blocked and exports can only be sold domestically. This causes many small and medium-sized enterprises to have "three fears": no market, no profits and huge business risks.

Chuang Huang clothing boss said: "at the earliest, we also made oral trade, generally exporting clothing to Southeast Asia, such as Philippines, Indonesia and other countries. After the financial crisis began in 2008, the sales of foreign exports were less and less, and we should not look at the large domestic market and march into the inland markets such as Sichuan. But a large number of large and medium-sized enterprises have been aiming at the domestic market, and competition is bound to be fierce. This also makes the road of SMEs more tortuous.

Where there is money to go, this is also the way for enterprises to survive. According to the insiders, if small and medium-sized enterprises want to survive better, they should not abandon the domestic market at the same time, and focus on the domestic market as the direction of small and medium-sized enterprises. For the domestic market, we should choose less competitive regions to reduce the pressure on the enterprises themselves. For foreign markets, as most enterprises turn to develop the domestic market, it is a good time to have the strength to develop foreign markets.

As for how to fundamentally solve the problem of the survival of SMEs, Chuang Huang's owner of clothing has given his own idea: "SMEs should reflect on themselves and solve their own problems from within. If we expect and rely on external help to tide over a difficult situation, enterprises will still be unable to face their difficulties on their own strength in the next crisis." {page_break}

"Speaking of small and medium-sized enterprises, we still have to mention innovation and spanformation. Innovation and spanformation are not achieved overnight, which requires the accumulation of enterprises themselves. At present, small and medium-sized enterprises are less innovative and difficult to spanform. Most of these enterprises are processing products for other large enterprises, with low profits, low and unstable orders, and easy to cause no orders to do, resulting in a lot of losses for enterprises. For small and medium-sized enterprises, after stabilizing the source of orders, we have begun to accumulate the innovation and spanformation. In foreign markets, enterprises can sell their products abroad and do a good job of spanformation. Of course, we hope that the government can appropriately support the development and spanformation of small and medium-sized enterprises, and complete the spanformation of enterprises at the right time. This is the fundamental way for SMEs to solve problems.