Solving The Plight Of Smes

"One is unprecedented. financing It is difficult; two is a very serious shortage of labor; the three is to enter the era of high cost in all directions.

In August 29th, at the 2011APEC SME summit in Chengdu, Gu Sheng, deputy chairman of the Standing Committee of the National People's Congress and vice chairman of the Central Committee of the people's Republic of China, put forward the above views when he talked about the difficulties faced by China's small and medium enterprises. He believed that because of these difficulties, many small and medium-sized enterprises were afraid to take orders even if they had any orders.

Small and medium enterprises play an important role in the national economy. However, under the macro environment of global economic growth, high domestic prices and tight money, the survival and development of SMEs are becoming more and more difficult.

What are the underlying reasons for these problems? Where is the way to solve the problem?

Pain of small and medium enterprises

Economic Observer: current small and medium enterprise What is the living environment?

Mr. Lai: as Mr. Gu Shengzu summed up, mainland SMEs are facing difficulties in financing, labor shortage and high cost. In the field of foreign trade, SMEs face nine obstacles: financing difficulties, internationalization and transparency, transportation and related costs. In addition, they include customs, laws and regulations, intellectual property rights, cross-border e-commerce issues, customs duties, tax rates and so on.

Taiwan has many small and medium-sized enterprises on the mainland. They are also faced with these difficulties. At the same time, they are hard to raise funds. Taiwan's local funds can not lend to them for policy reasons. Because there is a rule in Taiwan, where is your headquarters, where is your turnover? The same is true for mainland banks. They can only borrow money from foreign banks, while domestic banks are few and have a narrow scope of business. If the relevant financial regulations are relaxed, Taiwan funded banks can enter the mainland, and mainland banks can also lend to Taiwan funded enterprises. enterprise Financing is possible.

But the mainland market is the most active market in the world. It is full of opportunities here. Therefore, small and medium-sized enterprises should adjust the direction of enterprises and seize the opportunity. They should develop very well.

Liu Yang: We specialize in SMEs' deposit and loan business. More than 80% of our customers are small and medium-sized enterprises. With the rapid economic growth, the financing demand of small and medium-sized enterprises has been increasing in recent years. Although there is no statistics, many small and medium enterprises are queuing up in our banks to apply for loans.

The number of small and medium-sized enterprises is very large, and the scale of bank loans is increasing rapidly. Moreover, this is also a process of survival of the fittest. If you do well, you should become stronger and stronger. You should improve yourself. You should not always say that you have no money.

Because the central bank is right. loan In terms of total size, financing for SMEs is more difficult than before. But not all small and medium enterprises are hard. Some small and medium-sized enterprises are still very moist. Most of the small and medium enterprises in Sichuan are mainly domestic markets. The customers who are in contact with us are developing well. Moreover, SME financing is not only a channel for banks, it can directly finance, but also can fully finance, and internal financing, there are many kinds of financing channels.

Xu Xiaonian: in the past few years, we have seen the phenomenon of "going back to the country" and "nationalization" in all parts of the country, nationalization of coal mines, nationalization of oil fields and nationalization of iron and steel industry. In the process of nationalization, it is not to purchase in accordance with the principle of voluntary market transactions, but in accordance with the prices set by the government, which infringe on the property rights of enterprises, and the property rights of enterprises are not protected. Its investment enthusiasm has been compromised, and its original development potential is bound to encounter obstacles.

The protection of the rights of enterprises is also reflected in all kinds of policies and measures that interfere with market operation, such as price limits, such as restriction, which is a violation of the autonomy of enterprises.

Gu Yun Chan: China's economy has maintained a very strong growth, the first half of this year increased by more than 9%, although there are some decline in Europe and America, but China itself is already a big market, so I think many Chinese small and medium enterprises have great opportunities. However, small and medium-sized enterprises in China are facing some challenges as well as other countries. First of all, how to improve the transparency of operations and how to understand their financial needs more comprehensively. This need is not only about the needs of capital, but also the need for risk avoidance, the need to raise the rate of return on capital, how to find business opportunities abroad, and how to overcome the challenges that have just gone abroad to expand the international market. These are very similar to other small and medium-sized enterprises in other countries.

Economic Observer: what are the causes of these difficulties?

Xu Xiaonian: the current difficulties faced by SMEs include Management Difficulties, including difficulties in upgrading and transformation, are directly related to the current market environment to a large extent. Large enterprises are mostly state-owned enterprises, small and medium-sized enterprises are mostly private, state-owned enterprises occupy monopoly resources, monopolistic market access, small and medium-sized enterprises in the development of private economy is now facing a big obstacle is inequality treatment.

Liu Yang: mainly because this year's macroeconomic regulation and control on banks has a credit limit of the size of the whole, our small and medium-sized enterprises, or even like large enterprises, in the original relatively loose modern scale deployment, its project can do well to get the funds. This year, even if banks are willing to lend, there is also a scale constraint. So now we have only a choice of payment for new loan applications.

The overall credit scale control has been broken down, and every bank has indicators. Up to now, many banks have used the index almost. The remaining months can only be done through structural adjustment, for example, it does not account for the scale of the bills business, because it is off balance sheet business, making some additions through some other channels, and it will not work if we rely solely on funds.

Like Deyang bank, born in the market economy and small and medium-sized enterprises as the main customers, so if the policy allows, we hope to set up branches in more cities and provide services for small and medium-sized enterprises. At present, we are mainly in Deyang and Chengdu.

Gu Yunchan: I think the main reason is the information asymmetry of small and medium-sized enterprises. They may have many financing needs, but they do not know which channel to get financing. In addition, from the point of view of banks, there will be several problems in lending. Firstly, compared with some large listed companies, the finance of most small and medium sized enterprises may not be transparent enough. In addition, it is also difficult for SMEs to raise funds and collateral is not standardized or inadequate.

Solving problems

Economic Observer: is there any specific and feasible solution to the financing difficulties of SMEs?

Gu Yun Chan: in the specific operation of financing, SMEs should maintain a continuous relationship with banks. Entrepreneurs can not think of banks only when they want to raise funds. In fact, our bank hopes to have a very close and continuous relationship with SMEs, so that banks can understand the needs of enterprises. Only in this way can banks provide tailored financial solutions for enterprises.

Standard Chartered Bank put the small and medium enterprises customers in the personal banking business, instead of in the enterprise business, the advantage of this operation is to avoid the small and medium-sized enterprises and the big business get along with the same platform, and tend to be inferior in the loan examination and approval.

Practice has proved that this is a good system design, small and medium-sized enterprises will not be ignored.

Lai Shan GUI: before the financial crisis, Taiwan had a "problem solving center" for small and medium-sized enterprises. It was called "immediately run the center". Enterprises can call for help at any time.

After the financial crisis in 2008, the "care plan" was implemented on the basis of "immediately running the center", which is more active than the previous "immediate management center". There will be a team visiting the enterprises directly and asking if they need help.

The caring program includes 11 tutoring systems, funds, access, quality, information, technology development and so on. There are probably five or six non-profit organizations in different systems.

Bicycle, for example, is called bicycle research center. The shoe has footwear research center, precision machinery has precision machinery research center, plastic has plastic research center, biotechnology has Biotechnology Research Center, food science and technology has food technology research center, the government and folk established such a consortium, legal entity, our English is called NPO.

This is a corporate body jointly established by the government and the private sector, not for profit, which is jointly invested by the government and the private sector and budgeted by the government. When a financial crisis or natural disaster happens, NPO will take the initiative to find an enterprise to ask for help, including capital, technology and management.

Rather than special moments, NPO is also assisting small and medium enterprises, but not actively, but to accept applications.

Xu Xiaonian: at present, the government is also giving priority to the financial sector. Considering the large state-owned financial institutions, the large state-owned financial institutions have been favored by the government in the allocation of resources and market. Therefore, the fundamental way to solve the financing difficulties of SMEs is to relax financial regulation. Large financial institutions and large banks have no way to provide financing services for SMEs. Because the cost of serving SMEs is too high, they should continue to open up the financial market and allow more financial institutions to enter the market.

Economic Observer: should the government consider more support for small and medium enterprises in terms of system design?

Xu Xiaonian: the solution to the plight of small and medium-sized enterprises is not to support or support, or to offer preferential treatment, but to treat them equally. SMEs are now being discriminated against. Their most urgent requirement is equality, and the government should have such reform measures.

First of all, there should be equal treatment in the market competition. It is necessary to open monopoly industries to small and medium-sized enterprises. Secondly, we must protect private enterprises, protect the property rights of small and medium-sized enterprises, protect the property rights of enterprises, and the enthusiasm of investment will be hit, and the development potential will inevitably encounter obstacles.

In addition, the government should shoulder its social responsibilities and assume more basic social security, especially in the current employment difficulties and rising labor costs. But what we are seeing now is that the government continuously promotes the social responsibility of basic social security to enterprises and increases the burden of enterprises.

There is also a tax cut, but the trend we are seeing now is not tax cuts, but tax increases.

As long as the market environment is good, small and medium-sized enterprises know what they should do, and the competition and demand of the market will naturally guide the development direction of small and medium-sized enterprises. We should adjust our thinking and regard the market as the most powerful driving force for economic development, not the government.
　
Lai Shan GUI: actually, there are many things that the government can do for small and medium-sized enterprises. Take Taiwan's policies in recent years as an example, 97.9% of the 124 enterprises in Taiwan are small and medium-sized enterprises, and 8 million 190 thousand people are employed in small and medium-sized enterprises, accounting for 78.5% of the total employed population.

At the government level, Taiwan has a non-profit "credit guarantee fund" (established in 1975) to enhance the guarantee multiplier of SME loans. The enterprise goes to the bank loan, guarantees the fund to provide the 90% guarantee, namely enterprise loan 1 million, guarantees the fund to guarantee 900 thousand, if the enterprise collapses, the bank only needs to bear 100 thousand bad debt. By reducing risk in this way, banks are willing to lend money to SMEs.

At present, the guarantee fund has a guaranteed amount of 30 billion dollars a year, making a credit guarantee for more than 20 000 enterprises. From the establishment of the guarantee fund to the present 35 years, the government can not recover the funds of about 70 billion NT dollars, but the enterprises that have been helped create taxes and create jobs, which are more cost-effective than losses.

Because in the past, Taiwan has lost a lot of money in the financial field, and a bank can give you 80 billion. That 80 billion can provide 35 years for the small and medium-sized enterprises. You see, it is more cost-effective to help the small and medium-sized enterprises for 35 years.

Many large enterprises in Taiwan come from small and medium-sized enterprises. Now Foxconn, twenty or thirty years ago, got through the difficulties when it was very difficult to get bank loans through the guarantee fund.

The government pays attention to the policy of care. The bank can simply follow the market rules. It is very simple. If I were a bank, I would lend money, of course, the risk to small and medium enterprises would be high. The government can introduce policies to subsidized loans for small and medium enterprises, which is equal to encouraging banks to lend loans to SMEs.

Economic Observer: next, what is the situation of SMEs in China?

Lai Shan GUI: even with the right policy, the equal treatment and development of SMEs is also a gradual process. For small and medium-sized enterprises, this project must be special. The project can be a policy or a capital, and it is difficult to advance from top to bottom. With policy and capital, it takes time, too. This is a gradual process, as is the case in mainland China.

For example, President Obama recently raised $30 billion to help small and medium-sized enterprises. Recently, more efforts have been made to promote the promotion of small businesses. But big business, in fact, the government does not need to inject money into it. If you just remove the stone on the road, it will run very fast. Because it has its own R & D department, it has many talents, its scale is large and its cost is low, so the focus should be on assisting small and medium-sized enterprises.

Liu Yang: we carry out macroeconomic regulation and structural regulation, but we do not mean to push the economy down. The whole national economy still needs to develop. I expect that monetary policy will be looser next year.