Wenzhou Boss Runs Frequently &Nbsp; Beware Of The "Domino Effect" Of Business Failure.

In recent days, Wenzhou bosses ran away and business failures were frequent. In September 27th, 2 local bosses jumped out of the building in Wenzhou's local forums. According to police information, only 1 owners jumped to the floor on the 27 day. There were 4 businesses under the boss's name. It was rumored that the boss was owed 400 million yuan.

Small and medium-sized enterprises in Wenzhou have been closed down for a long time, but officials have always refused to recognize them. They have come out to deny rumors in a negative way and have responded to the concerns of the public with the saying that Wenzhou SMEs are "closed down". Now, it has been confirmed from the official that Zhou Dewen, President of Wenzhou SME Promotion Association, said recently that the collapse of business was more serious than expected. Almost every day, enterprises failed in the first half of the year, but people did not pay enough attention to it. It seems that there is no doubt that the collapse of enterprises in Wenzhou is not true.

The current situation of SMEs in Wenzhou is a microcosm of the survival of SMEs in China. With the new round Economic crisis Endanger the whole world, it is difficult for Chinese economy to remain aloof. A series of restrictive factors such as tight money, high cost, high cost of raw materials, high price of raw materials, power and energy saving and so on, make the survival and development of small and medium-sized enterprises difficult, and have suffered unprecedented challenges and troubles, and even more difficulties than the financial crisis in 2008. The sound of shouting "thirsty" in the financing of small and medium-sized enterprises has not attracted the attention of the authorities, and the difficulty of financing has become the last straw to overcome the small and medium-sized enterprises. If we fail to see the phenomenon of business failures almost every day, we can not face up to problems and work hard to solve them. The owners of enterprises will "run away" one after another, and it is not surprising that a business owner has committed suicide by jumping off a building.

The terrible phenomenon of Wenzhou is not the collapse of individual enterprises, but the involvement of bankrupt enterprises. Upstream and downstream Related enterprises in the industrial chain. Now, Wenzhou's industrial chain is relatively complete, forming a chain of related production, operation, product development, technical support, supporting supply and other related enterprises. If any part of the enterprise has problems due to production and operation, it will be directly exposed to the upstream and downstream industries, and the whole industry chain will be likely to have the risk of upstream and downstream fracture. It will cause a large number of enterprises to go bankrupt with the closure of the leading enterprises and accelerate the collapse. This terrible situation may be staged in Wenzhou enterprises.

Another terrible phenomenon can not be ignored, that is, the failure of small enterprises at the end of the industrial chain is more rapid than the large enterprises in small and medium-sized enterprises. Because these small businesses Single product Low capacity, lack of capital and ability to fight against market risks are relatively weak. Once large enterprises fail, the production of their products will become "no wood and water without source". Conversely, these small businesses supporting large enterprises will fall into a desperate state of collapse. They will also jeopardize the chain of large and medium enterprises and the whole industry, thus dragging down the production and operation of large and medium-sized enterprises.

The survival and development of small and medium-sized enterprises have entered an upward path of product upgrading and industrial spanformation, while the power to support small and medium enterprises to accelerate product upgrading and industrial spanformation is clearly inadequate. The government needs to take real gold and silver to implement practical measures to reduce the burden of enterprises from taxes, loans and other important links. It can backfire. On the important issue of product upgrading and industrial spanformation, enterprises are fighting alone, and on the other hand, they are helpless. When business owners see that the real economy is not profitable, they have to focus their attention on the survival and development of enterprises to "turn around" and drift in the "stir up" wind, from the property market, energy, antiques, to financial products, to the current private usury, and what to make money to fry. The trend of Industrial Hollowing is becoming more and more obvious. It is also an unavoidable fact that boosts the collapse of enterprises.

Small and medium-sized enterprises are the driving force behind the development of the region. The real economy is the foundation of the society. The collapse of Wenzhou enterprises is just around the corner and is jeopardizing the driving force and social foundation of regional development. Vigorously denying the collapse of enterprises is of no help, and applies a realistic attitude to face it bravely.

We need to strengthen our efforts from the aspects of enterprise support, financing coordination, risk prevention, combating evil forces and so on, and introduce policies and measures. We should reduce the burden of enterprises from tax and loan and other important links, and save small and medium enterprises in crisis. This will reserve the next way for the survival and development of SMEs, and avoid the Domino effect of the collapse of enterprises to bring harm and loss to the regional economic development.