Small And Medium-Sized Shoe Leather Enterprises In Shaanxi: Seeking New Breakthroughs In The Predicament

Since last year, the RMB appreciation, the export tax rebate reduction, the labor force becoming expensive and the price of raw materials have been superimposed, so that some enterprises in the East have ceased production and shut down. Small and medium enterprises in our province, especially labor-intensive and export dependent enterprises, are also struggling. In the face of this "survival exam", how should our SMEs respond? Reporters interviewed a number of enterprises and competent departments. The house leak is more than a continuous rain. "It's a real leak." In July 28th, Song Yi Hu, owner of Hengfeng, Qianxian County textile enterprise, described the situation of enterprises since last year. Cotton, electricity, freight and staff wages rose all the way. Song Yi Hu broke his finger and listed a series of price increase factors. The cost of spinning and weaving has increased by about 30%, and the price of finished products has not been raised. His conclusion is that "orders are placed, and we are losing money." But the factory could not be closed. Once the door was closed, the old customers left, and skilled workers were hard to find. Unless I do not want to work in this line, I can only hold on to it now. He admitted that from January this year, enterprises will lose about 100 thousand yuan a month. There are 29 textile enterprises and 18 thousand employees in Qianxian County. They can produce 65 thousand tons of yarn and 210 million meters of grey cloth annually. Under the role of multiple price increases, the textile enterprises in the first textile County of the northwest region have not been able to sustain any underfunded textile enterprises. It is not only in the textile industry that many small and medium enterprises have seen problems of small profits or even losses. Chen Baoli of Shaanxi beauty clothing limited liability company said that at present, the production cost of enterprises has risen by 20% - 30%, and some products have no profit; Tian Suhui of Xi'an Hongxing Dairy Co., Ltd. said that the profit margin of dairy enterprises has dropped by nearly 8% this year, which is entirely a small profit operation. The real "gold" is hard to find because small and medium enterprises in our province are many enterprises with long production cycle, low profits and large number of employment. The shortage of liquidity is very serious. Once the capital chain breaks, enterprises often go bankrupt. In the face of problems such as price rise of raw materials since the beginning of the year, the situation of shortage of funds for SMEs has become more acute. According to the statistics of the small and Medium Enterprises Bureau of the province, in the first 5 months, the financing gap of small and medium-sized enterprises and non-public enterprises in Shaanxi amounted to about 80000000000 yuan, of which the liquidity gap was 50 billion yuan. Loans are more difficult for small and medium-sized enterprises. Faced with difficulties, small and medium entrepreneurs interviewed have thought and done things, but the question of money has been "heroic." Countermeasure 1: industrial upgrading is the consensus of entrepreneurs to deal with the crisis. Li Zhongshe, the boss of Qianxian County South textile company, gave reporters an account. The same is for spinning, his enterprise needs to employ 150-160 labor forces, while a Shandong enterprise produces 10 thousand spindles and only needs 50 laborers to work. Even if the cost goes up, it will still be profitable. To achieve industrial upgrading and equipment renewal, he needs at least tens of millions of yuan. Now there is not enough liquidity on hand, let alone money to update equipment. "Once wanted to loan, because the bank threshold is too high, our conditions are not consistent with the requirements of others, and several times can only be counted on the wall." Strategy two: grasp the pricing power, which is the best way for enterprises to seek survival. However, none of the enterprises interviewed by reporters can succeed in communicating with customers. Most enterprises even mention nothing to customers about the price increase. "In the competitive market, whoever first raises the price will be kicked out first," Li Sheshe said. This is the dilemma faced by most "Grass-roots" small businesses. But encouragingly, we also see that some "made in China" products have been successful in the international market, which is undoubtedly a "booster" for the small and medium-sized enterprises in the mainland. In the short term, the crisis of SMEs stems from the rise of raw materials. From a long-term perspective, this is a manifestation of irrational industrial structure, and also a manifestation of the absence of policy in the financial sector. Moreover, the rise of raw materials in China is normal and a starting point, not a destination. For this reason, many small and medium-sized entrepreneurs have a common understanding, but they rely on their own ability to deal with the crisis. Wang Feng, director of the provincial SME Promotion Bureau, said that it will guide enterprises to make reasonable adjustments, increase financial support, and overcome difficulties with enterprises. This year, our province will produce 1 hundred million of the SME development funds, focusing on supporting the development of enterprises in the fields of technological transformation, independent innovation, and the establishment of entrepreneurial bases for small and medium-sized enterprises. In addition, all localities are speeding up the pace of setting up special development funds for SMEs, and actively establishing a guarantee system, especially focusing on the development of government sponsored small and medium enterprises guarantee institutions and mutual aid guarantee institutions between non-profit enterprises, expanding small guarantees, and guiding and leveraging more social sectors to invest in advantageous industries and enterprises. In the near future, the small and medium enterprises bureaus will develop industries and enterprises that are greatly affected by macroeconomic changes, and focus on the development of enterprises and key enterprises. Based on their difficulties and problems, specific measures should be put forward by enterprises and enterprises to win support from local Party committees and governments, help coordinate railways, transportation, energy and other sectors, and strive to reduce logistics costs and inadequate power supply for enterprises, and further improve their business environment. In addition, Wang Feng believes that this crisis is also an opportunity for Shaanxi. On the one hand, we can accept a group of enterprises moving northward in the east to enter Shaanxi to improve employment rate; on the other hand, it is a "baptism" for local enterprises, which can help enterprises achieve industrial upgrading, readjust their industrial structure, and achieve better development after breaking cocoon and transforming butterflies. In the interview, we also learned that the government of Qianxian County has begun to act to increase financial support for technological transformation of enterprises, prepare to introduce garment processing enterprises and extend the industrial chain, so as to enhance the anti risk ability of textile enterprises. Independent innovation has led enterprises to rise despite difficulties. But in the first half of the year, the small and medium-sized enterprises in Hunan Province delivered a satisfactory answer, thanks to their efforts to save themselves and the strong support of the government. There were 10481 new SMEs and more than 60 thousand new employees in the province, all over the same period last year. The operating income was 373 billion 600 million yuan and the added value was 1 billion 280 million yuan, up 17.7% and 17% respectively over the same period last year. According to preliminary investigation, most of the small and medium-sized enterprises in our province are mainly oriented to the province and the surrounding market, and export enterprises are few. The value of export delivery accounts for only 3% of the total operating income of the small and medium-sized industrial enterprises in the province. The export of textile and clothing is mainly made of white cloth, special homespun and high-grade special jigs, and export sales are stable, mainly because the loss of foreign exchange settlement has increased, and there has not been a large number of enterprises shutting down. The independent innovation enterprise has become a beautiful scenery during this period of haze. Xi'an Special Metallurgy Co., Ltd. is a high-tech enterprise specializing in the development, casting and processing of special metal materials and metal composite materials for wear resistance, heat resistance and corrosion resistance. Boss Song Fengtao said that after the price of raw materials increased, the average profit of his products had lost more than 6%. Some low technology products had not made money, but the products of independent innovation still had very high profits. Song Fengtao is confident in coping with rising costs. He recently worked with a university to study the use of magnesium alloys and other composite materials instead of increasing prices of steel. After the success, the profit will increase by about 2 percentage points. Relying on the scientific research team of universities in Shaanxi is a developing strategy for many small and medium-sized enterprises. It is reported that 60% of the enterprises in 3335 small and medium-sized enterprises and non-public enterprises in the province have jointly established a variety of collaborative enterprise technology and new product R & D institutions. 211 enterprises with annual revenues of more than 100 million yuan have their own advantages, and the contribution rate of science and technology to these enterprises has reached over 50%.