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Wenzhou Focus: SMEs in the "survival crisis" to find life

   In Wenzhou, Zhejiang Tianshi Electronics Co., Ltd. become the south leather, Portman and so, after another closed down the local well-known enterprises.

    Reporters in the company's site to see, empty office building covered with discarded paper, trash, broken glass, "Chinese famous brand" metal plaque to be discarded on the ground, a little bit of valuable metal window frames, stair handrails Lenders have been demolished, a few claiming to be former employees who are moving out tables and chairs "compensating wage."

    Since early this year,glue gun accounting for 99% of the total number of Chinese enterprises, providing nearly 80% of urban jobs, and nearly 60% of the exports of small and medium enterprises struggling to survive. Correspondent depth of Zhejiang, Fujian, and Guangdong provinces research found that SMEs in China assert a "closures" premature. But the electricity shortage, the money shortage, glue stick labor shortage and a sharp rise in operating costs for some coastal SMEs do face a crisis of survival.

    From correspondents visited more than 40 small and medium enterprises, more than 10 Industry Association, as well as telephone interviews of more than 20 small business owners of the situation, 7 to 80% of respondents said companies operating difficulties encountered this year. Increasingly diluted profits for business owners have not received a single, recruitment difficulties, power limitations and unsustainable monetary tightening to normal production, and even business owners that is currently facing a "survival of the most difficult period of history."

    In China, "low-voltage electrical appliances capital" Liu Yueqing City in Zhejiang Province town of Silver Alloy Technology Co., Ltd. Zhejiang days, is typical for large companies to do supporting small businesses. Deputy General Manager Zhao Liwen said that due to funding constraints, is difficult to advance raw material costs, turned down this year, 30% of orders, which opens a factory in 20 years never had.

    "Enterprise is helpless. Electricity is" open second stop one ", and independent power generation is three times the normal electricity price, 150 factory workers, 25 percent wage increase this year, business spending has increased by a third , with silver prices, and now only less than 5% of profits. "Zhao Liwen said. Due to funding constraints, the daily inventory of raw materials, silver has been reduced from two tons to 200 kilograms, "the warehouse is often bottomed out, can only run out tomorrow to buy today."

    Alibaba Group, recently visited seven cities in Zhejiang, 94 small businesses, small businesses and local 2313 to do an online survey. The results show that small businesses in Zhejiang Province, producing a half break or break production accounting for about 18.63%, capacity utilization remained at 90% of small businesses accounted for only 40%. Small enterprises are facing difficulties due to raw materials, labor costs rose rapidly, followed by appreciation of the renminbi, labor shortage, high cost of financing.

    Reporters in the more intensive SMEs in the Pearl River Delta, Foshan, Dongguan and other places visited was informed that a general decline in corporate profits, especially in the textile and garment, footwear, furniture, bags and other labor-intensive enterprises become more prominent.

    Medium and small enterprises to private enterprises in Zhejiang are worried in the second half profits will be more intense. Trade and Industry Bureau in Zhejiang province's 2600 track and monitor the private enterprises, 70% said the prices of raw materials companies rose significantly year on year, and 60% of companies expect this value will rise, 98% of companies expect the next quarter to be flat or even labor costs continue to rise.

    Although the operational difficulties faced by many SMEs in coastal areas, but multiple data, not yet a "closures." SME Bureau of Guangdong Province, said Mr Zhang literature, "closures" is not established, "Undeniably, however, overall costs rose, falling profits and other factors, small and medium enterprises struggling to survive, and the increasingly serious situation."

    The reporter found that although coastal SMEs generally face a crisis of survival, but still can see examples of businesses to help each other. Has a 30-year history, the annual profit of more than 200 million yuan in Zhejiang lean group, has recently been provided for the upper reaches of the original purchase accessories for small businesses prepaid amounts.

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