SMEs are trapped in multiple dilemmas, funding is tight, financing costs continue to grow

"In the first half of this year, the profit growth of small and medium-sized enterprises in Shanghai slowed down, and profits of some enterprises were flat or down, and even faced losses and production suspension." The Shanghai Survey Team of the National Bureau of Statistics released a survey report on the current operating conditions of small and medium-sized enterprises in some districts and counties. According to the survey, the total profit of more than half of the enterprises surveyed in Fengxian District decreased or lost year-on-year; 18 of the 29 companies surveyed in Qingpu District indicated that the profit margin was squeezed to a certain extent.   According to the report, in the near future, the Shanghai Survey Team of the National Bureau of Statistics and the District and County Investigation Team conducted a survey of 200 small and medium-sized enterprises to find that Shanghai's SMEs are facing multiple difficulties and their profitability is not optimistic. SME funds are generally tight, financing costs continue to grow; borrowing thresholds are high and difficult; capital shortages affect the upstream and downstream industry chains, further worsening the market environment; private financing risks, high interest rates, low corporate identity; "The effect of the implementation of the "Social Insurance Law" is superimposed, further pushing up the cost of labor; raw material prices have risen sharply and competition pressure is huge. The respondents generally reflected that the central bank raised interest rates three times this year, and the bank funds control was strengthened, which further pushed up the financing costs and loan difficulty of SMEs. 40% of the respondents in Qingpu District indicated that the financing costs have increased significantly this year. Nearly half of the companies surveyed in Minhang District said that it is more difficult to borrow from banks. The respondents of the Zhangjiang Hi-Tech Park in Pudong New Area reported that the current bank loan interest rate has risen, and the corporate loan cost has reached more than 11% of the loan amount, even if some enterprises have discounted items (2% discount), it is more than 9%. A person in charge of a precision machinery manufacturing enterprise in Baoshan District said: "The financial cost is getting higher and higher, earning 10 yuan, and giving the bank 4 yuan. For small and medium-sized enterprises, the pressure is too great." Not only that, the surveyed companies are generally I feel that the current bank credit funds have a tendency to concentrate on “big cities, large enterprises, and large industries”, making the difficulty of SME loans more prominent. Faced with these problems, more respondents expect the government to ensure the effectiveness of existing policies. Relevant persons from the Shanghai Small and Medium Enterprises Office told the Morning Post reporter that in order to support the development of small and medium-sized enterprises in Shanghai, Shanghai has issued two documents in a row, and they are still conducting research, or will further introduce further support policies. In April 2010, Shanghai issued the “Implementation Opinions of the Shanghai Municipal People's Government on Implementing Several Opinions of the State Council on Further Promoting the Development of Small and Medium-sized Enterprises”; on June 1 this year, Shanghai's first “Regulations on the Promotion of SME Development in Shanghai” was officially implemented. The source revealed that the current Shanghai leadership has asked them to strengthen support for small and medium-sized enterprises, especially small and micro enterprises, and take action as soon as possible. The Morning Post reporter also learned that the Shanghai Leading Group Office for Promoting SME Development is scheduled to launch the “2011 Shanghai SME Service Matching Month” event from October 10th to November 10th, and will organize “policy docking and financing docking”. Activities such as information docking and industrial docking. It is reported that this is the first time such a event has been held in Shanghai. Shanghai's commissions and districts and counties involving SMEs will participate, and all SMEs and micro-enterprises in Shanghai can participate.

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