The external environment is becoming increasingly difficult. Small and medium-sized textile enterprises face the cold current and practice “winter swimming”
At present, the economic cold wave caused by the financial crisis in the United States has put even more pressure on the vast number of small and medium-sized enterprises in my country that have been facing difficulties in production and operation since the beginning of the year. Since the middle of the year, the national and local governments have introduced a series of policies to help small and medium-sized enterprises tide over difficulties, providing preferential treatment and support in terms of finance, taxation, credit and other aspects. Some of these policies have just been implemented, and some have been implemented for some time. Have they had any effect at the microeconomic level? What is the current situation? What are the company’s responses and actions?
With question marks, reporters recently interviewed Zhejiang, a city with a large concentration of small and medium-sized enterprises. At the same time, they also saw the efforts of enterprises to survive and find a way out, and felt that they worked hard to practice “winter swimming” internal skills and prepare for the “winter”. confidence.
Business difficulties are still great
It will take time for the market to recover
“This year, small and medium-sized enterprises have been under too much pressure.” said Chen Yin’er, chairman of Ningbo Jinmeiya Group. There is a saying that is widely circulated among small and medium-sized enterprises in Zhejiang, which is the so-called “Five Tigers Down the Mountain”: declining external demand, rising raw materials, rising labor costs, increasing environmental protection costs, and a sharp appreciation of the RMB. The “Five Tigers” went down at the same time, and they encountered the credit crunch, which made it difficult for small and medium-sized enterprises to resist. The current financial crisis in the United States has not yet bottomed out, posing great risks to the economy and undoubtedly adding to the chill for the vast majority of small and medium-sized processing trade enterprises in my country.
According to statistics, from August to now, the profitability of more than 4,500 private fastener companies in Zhejiang has dropped significantly, their working capital is tight, and shutdowns of production are common. At first I thought it was just “growing pains”, but the reality was crueler than expected. Some parts and components companies that entered the market early and had accumulated assets of more than 5 million yuan saw that the wind was going in the wrong direction, and many chose to close down.
Regarding policy adjustments, companies have responded relatively positively. For example, the Ningbo Foreign Trade and Economic Cooperation Bureau estimates that the last two adjustments to the export tax refund rate involve 1,100 commodities, 4,634 foreign trade companies, and an export volume of US$8.761 billion. With the average increase in the tax rebate rate by 2 to 4 percentage points, companies’ export costs per dollar will drop by approximately 0.14 yuan to 0.28 yuan. If calculated based on the export levels in the first three quarters of this year, it is expected that the city’s companies will be able to reduce export costs by at least 1.6 billion yuan next year. “The new policies introduced by the state are definitely good for enterprises, but the ‘cold winter’ situation has now taken shape, and it will take a while for the policies to be effective.” Chen Yinger said, “This ‘cold winter’ will be long and difficult to endure. The key is to Let entrepreneurs see hope.”
Government support is a benefit
Policies should be strengthened
Enterprise development requires government support. The more special and difficult the period is, the more the government needs to understand and help enterprises. Following the central government’s introduction of a series of policies to protect small and medium-sized enterprises, local governments in Zhejiang Province have also taken measures. Taking Ningbo as an example, they will arrange 30 million yuan in funds this year and next to risk the interest income of banks’ new loans to small and medium-sized enterprises. Compensation; increase credit guarantee risk compensation funds for small and medium-sized enterprises by 10 million yuan; coordinate 300 million yuan of funds and pay them directly to foreign trade circulation enterprises through tax refund channels.
“There are people who care about us, listen to us, and share our worries, which makes us feel very warm.” Qian Xianping, chairman of Ningbo Huanying Company, said. From mid-July to late September this year, Ningbo carried out the “Cadres Entering Enterprises and Serving to Promote Development” activities across the city. A total of more than 10,000 people from agencies at all levels in the city have been mobilized to go deep into enterprises and front lines, adopting the approach of “one policy for each enterprise, one policy for each enterprise, and case-by-case solutions” to do everything possible to solve problems for enterprises.
At present, the big problem facing small and medium-sized enterprises in Zhejiang is financing difficulties, and financial institutions dare not lend money. To this end, various regions in Zhejiang have taken a number of measures. In July, Ningbo City launched a pilot program of small loan companies in various counties and districts to pave the way for bridging private funds and small and medium-sized enterprises; Bank of Ningbo launched the “Tuoyirong” credit product tailored for small businesses, mainly to meet the needs of small businesses in production For temporary fund payment needs in operations, the maximum limit is 500,000 yuan. Enterprises can obtain a credit line approved by the bank without mortgage or guarantee.
Zhejiang Province is a typical export-oriented economic province, with “thousands of troops engaged in foreign trade.” The province has established that the next policy focus is to “maintain stability and adjust structure” and implement the “four optimizations” of foreign trade, that is, optimization Export entities, optimizing export markets, optimizing the structure of export commodities, and optimizing trade methods. All enterprises that develop in this direction will be given preferential policies.
Many bosses of small and medium-sized enterprises believe that the country has successively launched a series of macro policies to assist small and medium-sized enterprises, which has sent a good signal, but the pace should be larger. Although the export tax rebate rate has been adjusted twice since August, the room for maneuver given to enterprises is very limited. Can it continue to be increased, including restoring the textile tax rebate rate to 17% and improving the export tax rebate mechanism? Although the central bank has cut interest rates several times recently, financing costs are still high. “Enterprises are still equivalent to working for banks.” Can we further reduce loan interest rates? Also, is it possible to increase policy support for companies to explore domestic and foreign markets, such as encouraging companies to participate in various forms of trade fairs, expos, order fairs and online matchmaking meetings, and provide corresponding support for companies to participate in large-scale domestic and foreign exhibitions?Provide fee subsidies and use support measures to reduce policy export credit insurance rates? ……
You must strengthen your muscles and bones to survive the winter
Strong confidence and never give up
The new policy is just a “warmth-preserving measure.” To ensure that enterprises survive the “cold winter”, they must also rely on themselves to strengthen their muscles and bones, learn to “winter swim”, and be fully prepared for the winter in all aspects. Since the country canceled the export tax rebate for steel products at the end of last year, Jinmeiya Group has adjusted its direction in a timely manner and converted all its products to domestic sales, avoiding risks caused by changes in the external situation. Faced with the reality of rising steel prices and high bank interest in the first half of the year, the company changed its previous direct sales production method and switched to processing for other companies to avoid cost risks. “Because of this, our operations this year are relatively stable, and the bank is relieved and has provided us with additional loans.” Chen Yinger said. Zheng Liren, chairman of Ningbo Yigao Hardware Lock Co., Ltd., said that in response to the economic downturn in Europe and the United States, they are developing the South African and Dubai markets.
At the just-concluded 104th Canton Fair, the “rigid demand” orders of some small and medium-sized enterprises in Zhejiang increased instead of falling, and mid-range products with high quality and low prices were welcomed by customers. Ding Haibin, deputy director of the Ningbo Municipal Foreign Trade Bureau, believes: “The deep spread of the financial crisis may bring a period of strong external demand to some Zhejiang foreign trade companies that export mid- to low-priced daily necessities, which will help companies weather the current export crisis. Difficult period.” The foreign trade products in many places in Zhejiang are mainly labor-intensive, and most of them are daily consumer goods and consumables. The prices are generally not high. These products are necessities even in the environment of “frugaling food and clothing”, and the demand is relatively low. It is stable and may even expand the market share due to the decline in sales of high-end varieties of similar products. This also provides a basis for Zhejiang enterprises to “overwinter”. In particular, the current price of energy and raw materials is falling, and there is still room for further adjustment of macroeconomic policies. Companies believe that more benefits will be introduced.
After the cold winter comes spring. In the first three quarters of this year, the economic downturn in Zhejiang Province became more obvious, showing a trend of stabilization, tightening, and declining growth. However, there have also been some positive changes. Many small and medium-sized enterprises are paying more attention to innovation capabilities, investment quality, management capabilities, and power consumption efficiency. Improvement, more emphasis on adjusting the export structure, preventing business risks, and driven by the policy effect of “maintaining growth”, most small and medium-sized enterprises are expected to usher in new development opportunities. “Survival is instinct, and development is ability. Even if there are many difficulties, the company itself must not lose confidence and give up its efforts. The hard days will eventually pass.” A boss said.
A summary of the country’s recent policies to support small and medium-sized enterprises
Finance
Since the beginning of this year, the Ministry of Finance has increased financial support, arranging 1.9 billion yuan of funds specifically to support scientific and technological innovation and technological progress of small and medium-sized enterprises; arranging 1.2 billion yuan of funds to support small and medium-sized enterprises to “go global” and carry out international economic cooperation. ; On October 29, in order to alleviate the current financing difficulties of small and medium-sized enterprises in my country, the central government allocated an additional 1 billion yuan specifically to support credit guarantees for small and medium-sized enterprises.
Taxation
According to the new Enterprise Income Tax Law and related regulations that will be implemented this year, qualified small and low-profit enterprises will be levied a reduced corporate income tax rate of 20%; high-tech enterprises that need key support from the state will be levied a reduced tax rate of 15% Collect corporate income tax;
In August this year, the Ministry of Finance and the State Administration of Taxation increased the export tax rebate rate for textiles and clothing from 11% to 13%, adding about 10 billion yuan in tax refunds in half a year; The export tax rebate rate for textiles and clothing has been raised again to 14%.
Credit
In August this year, through window guidance, the credit limit for national commercial banks was increased by 5% and for local commercial banks by 10% on the basis of the original credit limit, and it was required that this part of the credit limit must be used for small and medium-sized enterprises, agriculture or earthquakes Disaster areas; Loan limits for small and medium-sized enterprises are relaxed, and the maximum limit for small-amount guaranteed loans for individuals is increased from 20,000 yuan to 50,000 yuan; the maximum limit for small-amount guaranteed loans for labor-intensive small businesses is increased from 1 million yuan to 2 million yuan; Reduce deposit and loan interest rates.
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