Clothing Small And Medium-Sized Enterprises Swaying In The Wind

Peking University National Development Research Institute joint Alibaba (China) Limited (hereinafter referred to as "Alibaba group") recently released "Pearl River Delta small business operation and financing status report" (hereinafter referred to as "report"). The report believes that the rise in raw material costs has led to a sharp decline in the profits of small businesses in the Pearl River Delta region, increasing labor costs, shrinking domestic and foreign orders, and exchange rate and other factors. Small businesses can only spend 09 or 10 years on the accumulation of hard economic conditions. Affected by the tight credit funds of large and medium-sized enterprises and the decline of purchasing power of foreign customers, the pressure of raw material procurement payment increased, the accounts receivable of finished products were extended, the funds pressure was obvious, and the demand for financing increased. The report suggests that under the current economic environment, various small business support policies should be implemented, and the burden of small enterprises can be lighten by means of Taxation, so as to improve small enterprises. financing channel To promote the capital turnover of small businesses.

Zhou Qiren, Dean of the National Development Research Institute of Peking University, said: "macro monetary policy changes have brought great challenges to the overall economy in terms of micro and industry." In his view, adhering to prudent monetary policy will cause difficulties for small business financing, so we need to accelerate interest rate reform so that small businesses that can bear higher interest rates will get loans. As for enterprises themselves, Zhou Qiren believes that small businesses must first control costs and attach importance to expanding the domestic demand market. To develop the domestic market, we must have competitive products.

One of the report's publishers, Hu Xiaoming, vice president of Alibaba group, told reporters that "the research on SMEs in the Pearl River Delta region is a follow-up to previous research on small businesses in Zhejiang. Small enterprises are the core competitiveness of China's participation in global market competition. Zhejiang and Guangdong are one of the most intensive regions in China's small businesses. The results of the two survey make us realize that China's small businesses have extremely strong vitality, but lack of effective guidance and financing support. Lifeline 。 It is urgent to give effective guidance and give small businesses support at the level of financing and so on.

In September this year, the joint Alibaba group of the National Development Research Institute of Peking University visited the 11 professional markets and 15 local banks of 95 small businesses in 6 counties and cities in the Pearl River Delta, and conducted online research on 2889 small businesses in the Pearl River Delta through the form of a network questionnaire. Finally, a survey report on the operation and financing of small businesses in the Pearl River Delta region was finally formed. This is the second large-scale survey conducted by the two units in July of this year, after the completion of the survey of small enterprises in Zhejiang.

　 Profits fell sharply and raw materials became "big trouble".

The decline in profits has become the hardest part for small businesses this year. According to the report, the profit of small businesses has declined sharply this year, compared with that of 2010. profit Reduce about 30%-40% and increase business difficulties. In the face of rising production costs, small businesses lack the ability to increase profits through brand building and core technology.

72.48% of small businesses in research enterprises say that the rising cost of raw materials is the biggest difficulty in operation. The cost of raw materials in most industries is about 20%-50% higher than in 2010. For example, the price of raw materials and fabrics in clothing industry has even risen by 30%-80%. In previous years, the cost of fabric for cotton sweater is about 25 yuan, and this year it has risen to 45 yuan. In the past year, the cost of cotton T-shirt fabric cost was 5-8 yuan, and now it rises to 10-15 yuan. Most small businesses are at the end of the industrial chain, and can not transfer the pressure of cost increase to the pricing of products, only to lose profits.

In addition, the increase in labor costs has also squeezed the profits of small businesses. The wages of small business workers in the Pearl River Delta region rose by 20%-30% compared with 2010, and the wages of some senior technicians increased by more than 100%. Nowadays, the average monthly salary of an ordinary worker in the Pearl River Delta is around 2000-3000, skilled workers can reach 4000-5000, and skilled workers can get higher. Even so, enterprises still face the problem of large mobility and difficulty in recruiting workers. The rise in labor costs is one of the three biggest predicaments faced by enterprises at present. The proportion of enterprises is also 52.44%, second only to the rising cost of raw materials. {page_break}

In addition, the reduction of orders and exchange rate changes also weaken the profits of small businesses. While the profit margins of small businesses are constantly being compressed, they lack the ability to enhance profits through brand building and core technology. Take the underwear manufacturers of Pearl River Delta as an example, the profit of pure processing enterprises is only 5%, and the profit of OEM is up to 20%, and the profits of private brand enterprises can be higher. and Investigation and research According to the data, only 32% of the small brands with certain influence brands are on the brand, and only 18% of the small businesses have their own patents.

Obviously, the lack of brand value added guarantees that the small profits of small businesses are easily squeezed under the situation of rising production costs.

　 Reduced orders reduce operating rates, and small businesses eat old ones.

In addition to the high cost of production leading to a decline in profits, at present, for small businesses, another disadvantage is the reduction of orders. The report shows that the number of small business orders in the PRD declined by about 30% compared with 2010.

The reduction of small enterprises' orders is mainly affected by the European debt and the US debt crisis. The consumption in Europe and the United States is declining, and the orders from the European and American markets are decreasing, which has a greater impact on the small Pearl River Delta enterprises which are mainly export-oriented economies. In addition, the domestic market prices of raw materials, the increase in labor costs, the appreciation of the renminbi and other factors have reduced the export competitiveness of small business products. In addition, Vietnam, India and other regional enterprises have robbed the market with low prices to join the order. There has been no room for domestic small businesses to compete at a low price. Besides, real estate regulation has also led to a gradual reduction in related orders for domestic building materials and related products.

The most direct impact of order reduction is the start up rate of small businesses. At present, the average operating rate of small businesses in the Pearl River Delta has dropped to 70.92%. Compared with the past 100% years, the production rate of the Pearl River Delta enterprises is even higher than that of the previous year. The production in 2011 showed a downward trend.

Although the operating rate of enterprises has declined, the phenomenon of "closing and stopping" has not appeared on a large scale. In the face of difficulties, most of the enterprises with low operating rate are mainly thin, rather than closed factories. After 08 years of financial crisis, many small businesses in the Pearl River Delta region are already aware of the crisis. Some small businesses have already adjusted the raw material stocking and ordering strategy, which is similar to preventing RMB appreciation and domestic raw material price fluctuations. Some small businesses have broken up big orders into small orders to shorten the production cycle and concentrate their efforts on orders with shorter settlement periods to control profits.

The report also reveals that the phenomenon of "eating old books" is serious. Small businesses rely heavily on the accumulation of 09 or 10 years of hard economic growth, but lack confidence in how long they will persist. For small business owners, whether or not they can earn money or whether they can see the hope of making money is the most practical criterion for judging whether or not an enterprise will continue to operate. Data show that 72.45% of small businesses expect no profit or a small loss in the next 6 months, and have less confidence in the next 6 months. 3.29% of small businesses expect to lose substantially or go out of business in the next 6 months, pessimistic about future business. The mentality of entrepreneurs also shows that small businesses are facing great difficulties and need help.

　　 Big enterprises shift funds pressure, small businesses add insult to injury

In the case of high operating costs, declining profits and shrinking orders, the report thinks that the financing needs of small businesses are further expanding. However, this demand has encountered very narrow financing channels, and the contradictions between the two have been further highlighted.

In the pressure of financial pressure faced by small businesses, the pressure of large and medium enterprises to extend the settlement cycle of small and medium-sized enterprises to varying degrees is obvious. The current tightening monetary policy has brought pressure on the capital chain of large and medium-sized enterprises. Large and medium-sized enterprises are relieving capital pressure by lengthening the settlement cycle of supporting enterprises, and most of these supporting enterprises are small businesses. At the same time, small businesses are required to speed up the settlement cycle or even cash settlement when purchasing raw materials suppliers. Squeezing at both ends, the pressure on small business funds becomes more apparent. Enterprises that have visited the company reflect that the sluggish capital flow has directly led to a 2 percentage point decline in profits. {page_break}

It is difficult for small businesses' own funds to meet the needs of daily operation. Financing consciousness is stimulated in the face of real difficulties. However, this demand touches the narrow financing channel, and the two contradictions are prominent. For small businesses, borrowing money from relatives and friends is still the primary financing channel. The report shows that small businesses with a certain scale are relatively more accumulated and can provide guarantees that are in line with banks and credit unions and are more likely to obtain bank loans. Micro enterprises have the lowest loan ratio in banks and credit unions. The owners of small and medium enterprises surveyed believe that bank funds are biased towards large and medium-sized enterprises. They believe that bank products are not suitable for small businesses. The main recognition is that banks have a high threshold, while most small businesses do not have collateral for fixed assets such as land or factory buildings.

In addition, the Pearl River Delta lacks financial institutions for small businesses, especially micro enterprises, similar to Taizhou Bank of Zhejiang Province, Bank of Tyrone and Inner Mongolia's contractor bank. This is also one of the factors that affect local small business financing.

The narrowing of financing channels also led to a high proportion of SMEs in the Pearl River Delta region who had never had financing experience, reaching 53.03%, while the proportion of small businesses that had never experienced lending in the Yangtze River Delta region accounted for only 22%. The financing needs of enterprises are obviously suppressed by financing channels.

　　 Small businesses need warm policies, and financing channels need ice breaking.

Faced with the current situation of small businesses, it is urgent for small businesses to guide and support small businesses from the policy level and reduce the burden of small businesses. Broadening financing channels and establishing financing institutions and financing products that meet the characteristics of small enterprises are also practical help for small businesses as early as possible.

According to the reflection of small businesses, governments at all levels and relevant ministries and commissions have issued many policies and guidance for supporting small businesses, such as the guidance of commercial banks on small business loans, and guidance on further increasing credit support for small and medium-sized enterprises. However, the reality is that small and medium-sized enterprises are less likely to get involved in these policies. The report believes that policies to benefit small businesses need to be realistically implemented to improve the living environment of small businesses. In addition, the report suggests that tax policies should be leaning towards small businesses, encouraging tax reduction, fiscal discount, income tax relief and preferential tax rates to reduce the tax costs of small businesses, which is conducive to the coordinated development of social economy and the further development of small businesses.

In addition, some small businesses interviewed have realized the importance of brand and channel. They hope to increase the added value of products through brand and channel construction. The report suggests that relevant policies should be adopted to guide small businesses to strengthen brand building and change the pattern of profit in the past.

Lack of money and difficulty in financing is one of the most pressing difficulties for small businesses at present. The report suggests that improving the financing channels for small businesses as soon as possible is one of the urgent needs of small businesses. The financing channels for small businesses are narrow, and banks in financial institutions are still the main body serving small businesses. However, in practical operation, small businesses, especially micro enterprises, have difficulty in obtaining loans and obtaining loans because of various reasons. It is recommended to encourage the rapid development of financial institutions serving small businesses, especially micro enterprises, and encourage business model innovation, product innovation, etc., so as to achieve the balance between risk control and business development in various regulatory requirements.