Survey on the Business Dilemma of SMEs: The Difficulty of Rising Costs

At present, the increase in production costs of SMEs is mainly reflected in three aspects. First, due to inflationary pressures, the price increase has been further accelerated, the increase in the prices of various raw materials has increased sharply, and the second reason is that due to the accelerated industrial restructuring, the pay of ordinary labor and technical personnel has increased. With the increase in land prices, the cost of renting land and buildings has increased significantly.

Although the current price of cotton has a certain correction, it is still up 50% year-on-year, and coupled with rising labor costs, the cost of some textile companies has risen by more than 80%. The journalist Lin Ruiquan/Photographer Zhou Chun, who has been in the textile trade field for nearly 20 years, claims that the physical and psychological pressures are very recent. “The raw material cotton price has risen by nearly 50%, and labor costs have gone up by 30%, adding up to a total of 80%.” Zhou Chun introduced on May 12th that he wanted to do nothing, but many people in the company’s team followed I have worked for more than 10 years and I don't care if they leave.

Zhou Chun is the head of Qingdao Zhongtian Knitting Textile Co., Ltd. In the face of rising cost pressures, he said that he felt a bit overwhelmed.

According to China's No. 1 Textile Network, Zhou Chun said that not only the cost has risen sharply, but the appreciation of *** has further reduced the company's profit margin, and the advantages of Chinese traditional enterprises are gradually disappearing.

What follows is the loss of orders. Zhou Chun said that although the company has been adjusting prices on product orders, but foreign customers still pressure the price and pressure, last month, a more than 200 million orders were quoted by the Indonesian company, "across the knife to win love" .

Not only did the profit decline, small and medium-sized foreign trade companies began to show signs of closure. At the time of banking, Zhou Chun had encountered another SME owner. When the bank stated that it no longer continued, the business owner stated that "the business was going to be closed down."

The price of raw materials is rising steadily The data released by the China Association of Small and Medium Enterprises shows that in the first quarter, the decline in China's SME development index was due to the increase in the purchase price of raw materials and energy and the increase in labor costs, which increased the pressure on corporate costs. According to the survey, 88% of the enterprises reported that the purchase price of raw materials and energy increased compared with the same period of last year, and 81% of the enterprises reported that the labor costs of enterprises increased.

Zhou Chun started from scratch in 1993 and turned a three-person workshop into a small business with more than 200 people.

Zhou Chun said: "I like to do this line of textile trade, or will not persist for so many years, but the current environment has not allowed me to let go."

Since the beginning of 2010, the soaring price of cotton has caused textile companies to complain.

According to the report of China First Textile Network, Zhou Chun introduced that although the current cotton price has a downward trend, compared with last year, the overall price of raw materials still rose by 50%. “Companies start from scratch, and in the current high-cost environment, sometimes they really want to stop doing it.” Zhou Chun said, “I think there are many people in the factory who have been working in their 20s and now more than 10 years ago. In the past, they also supported me in the factory. I have always insisted on teething.” “At present, there are about 300 employees in the Zhongtian Jimo factory. Now it is difficult to recruit workers, corporate profits are gradually reduced, and factories can only be set to relatively lower labor prices. Low places to reduce costs." Said Zhou Chun.

In order to “save the wind,” Zhou Chun opened the factory to Hebei. Zhou Chun said that to go to the field to open factories is mainly taking into account the advantages of local labor costs, from the current point of view, the effect is still good.

In addition to setting up factories in foreign countries, the transfer of foreign trade to domestic sales has also become one of Zhou Chun’s options.

Zhou Chun said that in the future, it will increase the market share of domestic sales. Since the company’s foreign trade accounted for most of the previous share, this is also a frustrating move in the current context.

While domestic sales have become a "life-saving straw" for the company, Zhou Chun also faces many difficulties. The lack of funds is one of them.

As a small and medium-sized enterprise, banks are very selective. Zhou Chun introduced that according to the company's plan for domestic sales, the current funding gap may reach more than 10 million yuan.

Zhou Chun's business is only one of the miniatures of many SMEs in China. In the Jiangsu and Zhejiang regions where small and medium-sized private enterprises are developed, small and medium-sized enterprises in hardware and plastics products are suffering from rising raw materials.

According to the report of China First Textile Network, Luo Baihui, managing director of the International Die & Metal & Plastics Industry Suppliers Association, introduced that the inflationary pressure remains large in 2011. Due to the sensitivity of the industry to changes in raw material prices, the demand for basic raw materials from hardware and plastic molds increased. The long-term trend of rising raw material prices is irreversible. “The pressure on raw material prices will continue to increase, and it is expected that the prices of major raw materials will resume their upward trend in 2011, which will push up the cost of the mold industry.” Luo Baihui said that from the current point of view, the demand for raw materials for chemical plants is greater, and it is subject to upstream propylene oxide The tight demand has led to a continuous increase in the price of propylene oxide and a gradual increase in the pressure on production costs of polyethers.

As for the rise of raw materials, Zhang Ping, general manager of Ningbo Boer Pipe Industry Development Co., Ltd., which extracts related materials from petroleum as raw materials and produces various pipes, “has been somewhat murmured”.

Zhang Ping said: "With the rise in prices of petroleum and other commodities, our raw material costs have also risen by 20% to 30%."

On April 27th, the data released by the China Association for Small and Medium Enterprises showed that in the first quarter, the decline in China's SME development index was due to the increase in the purchase price of raw materials and energy and the increase in labor costs, which increased the cost pressure for enterprises. According to the survey, 88% of the enterprises reported that the purchase price of raw materials and energy increased compared with the same period of last year, and 81% of the enterprises reported that the labor costs of enterprises increased.

The worries of labor costs "Compared with the surrounding businesses, the recruitment situation this year is still good, and basically the staff has been recruited on the job." Wu Jianan said, but the cost of recruiting new employees has risen a lot in the past, in previous years, employee wage expenses accounted for The total expenditure is 6% to 7%, and it has risen to about 10% last year.

Not only the cost of raw materials, but many small and medium-sized enterprises that have not been "fazed" by the labor force have been plagued by labor shortage in recent years.

For the "labor shortage" and the increase in labor costs since the Spring Festival this year, Zhang Ping felt deeply touched.

According to the report of China First Textile Network, “We have just issued wages for employees in April. Compared with years ago, a total of approximately 50,000 to 60,000 yuan was added.” Yesterday, Zhang Ping told reporters on the phone, The increase in the cost of labor caused by labor shortages is understandable and helpless.

Zhang Ping introduced that taking into account the rapid rise in prices last year, before and after the introduction of the new minimum wage standard in Ningbo City, the company has twice raised the salary of employees, totaling more than 28%, more than a few hundred years of expenditure.

"More than 300 to 400 people have been recruited this year, and the introduction fee has cost tens of thousands of yuan." Wu Jianan said in an interview with this reporter in early March that this spring, old employees or acquaintances will introduce employees to the company. According to the age and technology of the recommended employees, the company will give an introduction fee ranging from 200 yuan to 500 yuan for the introducer.

Wu Jian'an is the chairman of Hubei Mingren Textile Technology Co., Ltd., a medium-sized private enterprise that produces pure polyester yarn, and currently employs about 3,000 people.

In the Yangtze River Delta and Pearl River Delta regions, there are many like Ningbo Boer Pipe Industry Development Co., Ltd.

On May 5th, the 109th Canton Fair, which was the "wind vane" and "barometer" of China's import and export trade, ended on schedule.

Through interviews with enterprises participating in the Canton Fair, it was learned that in the context of “increasing labor costs and a high exchange rate”, companies have to protect their profit margins, and they have to be “cautious” when ordering export orders, and “prices are foreign customers”. Push and push."

According to the report of China First Textile Network, “If the cost rises by about 5%, we generally do not raise prices on the basis of ensuring the stability of customers.” Participated in the first phase of the 109th Canton Fair, Jining Road Dewei Machinery Manufacturing Co., Ltd. Overseas Yang Haichao, head of sales, said that if the cost rises above 5%, the company’s product prices will increase by approximately 3% to 5%.

According to Liu Jianjun, a spokesperson for the Canton Fair, the medium and short-term orders for this session of the Canton Fair accounted for 90% and long-term orders accounted for 10%. Buyers still have doubts about the market outlook and place orders cautiously; export companies are worried about policy adjustments and rising costs and are afraid to accept long-term orders.

Liu Jianjun said that the current uncertainties and rising costs have constrained the company's trading volume.

Among them, compared with the first phase of electromechanical and other enterprises, the second phase of the exhibition of consumer goods, gifts and home accessories companies and the third phase of the textile and apparel, footwear and other labor-intensive enterprises The increase in the cost of labor and raw materials is even more "a painful experience."

The high production and operating costs not only affected the trading volume of enterprises at the Canton Fair, but also affected the normal production and operation of enterprises. The survival of SMEs has become increasingly difficult.

The All-China Federation of Industry and Commerce Party Committee and the First Deputy General Manager Zeng Zhezhen expressed at a forum in Beijing on April 22th that although the party and the country have long attached great importance to the development of SMEs, especially in recent years, a series of measures have been continuously introduced. The development environment for SMEs has been significantly improved. However, SMEs, especially small and micro enterprises, are still faced with many difficulties. Among them, the most important issue is the increase in production and operating costs.

Quan Zhezhen analysis pointed out that the current increase in the cost of production of SMEs is mainly reflected in three aspects. First, due to inflationary pressures, the price increase has been further accelerated, the price increase of many raw materials has increased sharply, and the second is due to the accelerated industrial transformation, common labor and technology. The salaries of personnel increased. Third, with the increase in land prices, the cost of renting land and factories increased significantly.

According to the report of China's No.1 Textile Network, “As a traditional enterprise of our country, textile enterprises are increasingly affected by various factors and their position in the international arena is worse than before.” Zhou Chun said that the current domestic and international situation is not clear. Some enterprises in the south began to show signs of failure again, hoping that the country can support it in many ways and prevent some companies from taking "detours."

Zhang Monan, deputy researcher of the forecasting department of the National Information Center, suggested that the national supervisory authority should give SMEs training, management, technology research and development, and funding to support the SMEs in an overall system.

Deterioration of operating conditions for SMEs The heads of small and medium-sized enterprises in Jiangsu and Zhejiang generally believe that the deterioration of current operating conditions includes six major problems: increasingly tight funding, rapid increase in labor costs, pressure on energy saving and emission reduction, increasing tax burden, and land The price has become too high, high prices have brought high costs, and pressure on the appreciation of the *** has been enormous.

“The company will have a power outage tomorrow and have already given a notice.” On May 13, an insider of a dried fruit production company in Zhejiang told the reporter.

Just after the beginning of summer, the signs of power shortages in many provinces and cities in the south came to an end. Under the pressure of raw materials and labor costs, the lack of electricity has become another hurdle for many small and medium private enterprises.

Statistics show that in the first quarter of this year, enterprises in Zhejiang Province that had limited access to electricity reached more than 500,000 households, and many companies faced the embarrassment of “opening three for one” and “stopping for two days per week”. On May 12, Hangzhou Customs announced the operation of Zhejiang Foreign Trade in the first four months of this year. Hangzhou Customs statistics and analysis experts believe that the impact of the off-season electricity shortage on private enterprises will gradually appear.

It is understood that this year's "electricity shortage" has come two months earlier than in previous years. Currently, Zhejiang, which has suffered the worst electricity shortage in seven years, has a power shortage of 2 million kilowatts. In the management of power cuts, some small and medium-sized private enterprises are often the first to bear the brunt of this. This will further increase the subsequent impact on private enterprises that account for half of Zhejiang's total import and export value.

Luo Baihui believes that “the ship is a small one”, the current plastic mold business is about the size of 40-50 people, while the hardware company is the scale of 100-200 people, many small and medium-sized enterprises have diesel generators, they can generate electricity.

"For some large and medium-sized enterprises and labor-intensive enterprises, the impact of electricity restriction on them is still very large." Luo Baihui said.

According to the report of China First Textile Network, Luo Baihui believes that, from a certain point of view, power cuts will result in passive production cuts in some industries, leading to further price increases. But currently, the direct impact on the downstream is more obvious. For instance, the sub-sectors such as phosphorus chemical industry and caustic soda account for as much as 60% of the cost of production, and the silicon industry's electricity costs account for about 40% to 50% of production costs. Therefore, the power shortage has a greater impact on the phosphorus chemical industry and the caustic soda industry.

Some studies have found that the current operating conditions and operating conditions of SMEs have deteriorated significantly. Among them, tax burden is a major problem faced by SMEs.

Statistics show that at present, there are more than 10 million SMEs, accounting for 99% of the total number of enterprises, providing nearly 80% of urban employment, and the tax payment is nearly 50% of the total national tax revenue.

Previously, according to the investigation of the State Council Development Research Center, currently the heads of small and medium-sized enterprises in Jiangsu and Zhejiang generally believe that the deterioration of current operating conditions includes six major problems: increasing capital shortage, rapid increase in labor costs, pressure on energy saving and emission reduction, and taxes. The increasing weight of land, the high price of land, the high cost of high housing prices, and the pressure of *** appreciation.

During the “**” period of the country, Xu Shanda (column), member of the National Committee of the Chinese People's Political Consultative Conference, Vice President of the China International Taxation Research Institute and former Deputy Director of the State Administration of Taxation, said in an exclusive interview with reporters that value-added tax and sales tax will be imposed on small and medium-sized enterprises and self-employed individuals. Points can also be improved.

Xu Shanda believes that for self-employed individuals, their burden will be reduced, they will be able to live and work in peace, society will be stable, self-employed people will grow faster, and successful companies may also be created.

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