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Small And Medium Fasteners Companies Hold On! The State Officially Announced That China Cannot Be Without SMEs.
- Sep 07, 2018 -

1. Unprecedented attention, unprecedented support!


This is the first time in the history of the central government to hold a special conference on the development of small and medium-sized enterprises, which is unique. The specifications of the meeting were very high. Comrade Liu He presided over the meeting and delivered a speech. The Ministry of Industry and Information Technology, the National Federation of Industry and Commerce, the People's Bank of China, the Ministry of Finance, and the Ministry of Commerce all made speeches.


The first meeting of the group also conveyed a lot of meaningful information in the details. First, let’s look at the content reported by each department:


Ministry of Industry and Information Technology: About the overall development of SMEs


National Federation of Industry and Commerce, People's Bank of China: On the financing of financing difficulties for SMEs


Ministry of Finance: Implementing fiscal and tax support policies


Ministry of Commerce: Report on import and export situation


Obviously, the contents reported by these departments cover exactly the policies that SMEs are currently most concerned about and most concerned about.


When talking about the status of SMEs, the meeting particularly emphasized "to adhere to the basic economic system, treat the state-owned and private economy equally, and treat the large and medium-sized enterprises equally."

The emphasis of this meeting on "discriminating the same person" is to focus on creating a good environment for the development of the enterprise. The meeting also emphasized the problem of solving the problem of financing difficulties for SMEs to ease financing, and emphasized the improvement of service quality and level, and the protection of SMEs' innovative research and development achievements. It is not a developmental perspective to examine the difficulties encountered by SMEs. It is highly targeted and forward-looking.


All localities and departments should take this opportunity to strengthen organizational security and supervision accountability, earnestly implement policies, and enthusiastically support the healthy development of small and medium-sized enterprises, and make new and greater contributions to the sustained and healthy development of China's economy and society.


Yes, you are not mistaken, a series of policy support for SMEs with very high gold content, come!


2, manufacturing is difficult, SMEs are difficult, manufacturing SMEs are more difficult


Who is the most powerful and lovely person in today's society? Who is the hardest and most poor person?


SME boss!


They say that they are the most powerful and cutest, because SMEs have a great contribution to the development of China's economy. They say that they are the new force in national economic and social development. It is no exaggeration.


The data clearly shows that SMEs contribute more than 50% of tax revenue, more than 60% of GDP, more than 70% of technological innovation, more than 80% of urban labor employment, and more than 90% of enterprises.


SMEs are the new force for national economic and social development. They are an important foundation for building a modern economic system and promoting high-quality economic development. They are an important support for expanding employment and improving people's livelihood, and are an important source of entrepreneurship.


However, the SMEs are the hardest and most poor people in China. After they put their personal life on the company, they will no longer be able to retreat.


Have to mention the problem of tight capital chain. The manufacturing industry is a high-input industry. Among them, the machinery industry is a capital-intensive industry. The equipment is hundreds of thousands of dollars. The fixed investment such as factories requires a lot of money. No wonder people comment, tens of millions or hundreds of millions. In the tertiary industry, it sounds like a huge number. When it enters the manufacturing industry, it often "cannot hear the water." The current situation of inter-enterprise payment is insufficient, the cost is high, and the profit is mostly used to purchase equipment to expand production. The capital chain of SMEs is very fragile.


@用户山人: I have a friend who opened a factory for pharmaceutical intermediates, 100 mu of land, and invested nearly 40 million. At that time, we all said that the boss’s assets were not worth 100 million. Later, ICBC collected loans and the funds were tight. Later, there was a safety accident, 2 deaths and 2 injuries, the factory was shut down, the equipment was taken more than 1 million as scrap iron, and now it is nearly 20 million. On the old Lai search network, the house was also auctioned.


Second, borrowing money is difficult and financing costs are high. When an entity borrows a loan, the owner first determines the collateral.


Inventory? Sorry, our bank does not do it. Accounts receivable pledge? Is the downstream a large real estate company? For example, Vanke, Country Garden? No, sorry, our bank doesn't do it. Pledge of scientific and technological achievements?


Oh, the new policy has been introduced. Under the premise that you have collateral, this can be a new quota.


Is there anything I can do? The guarantee company can, but in 2018 they charge a little higher and the service charge is 2.8%. Coupled with this year's interest rate hike, it is generally a benchmark of 30%, almost a comprehensive cost of about 8.5 percent.


Not only are these problems faced, but many other thorny issues, such as labor costs and low-end technologies, are constraining the development of these enterprises.


Some people say: "The small boss is in the middle, the boss is in the middle, the big boss is biting his teeth and sleeping at night, this is our 2018!" This may be a bit serious, but in the past few years, the bosses are not easy.


Every day, every blink of an eye is a variety of costs. Every month, the same salary and taxes as the mountains are rigidly constrained. Where the expenditures are delayed, you will be able to kill you soon. And the income is stretched, and it is normal to make ends meet. It is a pile of accounts receivable that you often get when you are worried about it. There are even bosses who come up with the following picture to describe their situation:

Big Tree: It is your business. Businesses are always at risk of being broken.


Water: Water is your property. Water can carry a boat and can also overturn a boat.


Crocodile in the water: it is your peer. When you are in trouble, you are friendly and you; when you are in danger, he is open and waiting to eat you.


Underground Lion: It is a law enforcement department such as banking and industrial and commercial taxation. You are waiting for your profits to be shared.


The snake on the tree: It is the debt that is entangled in what you owe. If you don't solve your debt, the debt will always stare at you, always threatening your life. Now many companies are not dead on the debt issue?


The wild goose in the sky: it is your family and friends. Hello, friends and relatives; you are difficult, friends and relatives fly.


The person hanging on the tree: the legal person of the enterprise. Anyone can escape from the tree, but he must bear it alone and helpless.


Underground axe: It is the product of your company. The product must always be unique and necessary.


Of course, these metaphors are exaggerated, but from one aspect, they also reflect the anxiety of doing SMEs: when the shipwreck is overwrecked, the most unfortunate is the captain, the crew can escape, but the captain is reluctant to take his boat. !


Low-key silence, patience and perseverance, to a certain extent, to a certain extent, many of the bosses in China's manufacturing industry are practicing. For those who are struggling with life, when the country encounters temporary difficulties, the country will send more warmth and help solve the problem. It is mostly to release water and raise fish, so that they can cheer up and walk up, and should necessary!


3. In the past, present and future, China cannot be without SMEs.


Whenever a large developing country such as us, small and medium-sized enterprises, especially small and medium-sized enterprises engaged in manufacturing, are fundamental to the country, and its importance cannot be overemphasized.


As we all know, the Chinese wealth growth model with the house as the core has already faced enormous challenges. I don't want to say that it is a problem of price increase or collapse, but this model is difficult to sustain and will eventually return to manufacturing!


Please keep in mind: China can't live without SMEs, and can't be without SMEs in manufacturing!