2011-5-30
The latest reports from media display that medium and small garment enterprises in Zhejiang, Guangdong, Jiangsu provinces are stopping or cutting production. Struggling enterprises are not only in clothing production industry, some footwear enterprises also fall into such plight.
The Industry and Information Minister issued a circular letter on May 4, requiring various authorities in all provinces and cities to carry out survey on financing situation of SMEs, the required report should be submitted to the Ministry before May 15.
At the same time, the plight of medium and small garment enterprises has also caused great concern from the National Business Federation. They took more than two months in previous time, making systematic survey in 16 provinces, including Guangdong, Zhejiang, Jiangsu, the finding shows that business conditions of small and medium enterprises, especially small and micro enterprises are more difficult than they were in global financial crisis 2008. It is reported that the investigation report will be submitted to the State Council.
Currently the developing "closure surge" of small enterprises is complicated: external demand reduces, raw material prices rise, wages raise, labor is in shortage, RMB appreciates, increased competition comes from surrounding nations, power is insufficient, as well as other complex factors, therefore, it is very difficult to have the situation reversed.
After 2008 financial crisis, 4 trillion yuan of investment saved SMEs from closure. Similar 4 trillion yuan of investment could have similar incentive effect, if closure surge reproduced this year? As more and more severe situation emerges with small and medium enterprises, the problem sets to cause serious concern from all levels.
Source:chh
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