SMEs face challenges in a more conducive business environment


BEIJING, October 8, 2022 /PRNewswire/ — By Rev of PekingWatch: In January 21st10 days before the Spring Festival holidays (from January 31 to February 6 this year), the workshops of Baoji Saiwei, a heavy machinery manufacturer in Baoji, Shaanxi Province in northwest Porcelain, are in full swing to complete your orders. By the end of 2021, Saiwei had already received its orders for the first half of 2022. Deputy General Manager Li Hui saying Beijing Review, “We need to deliver products on time and explore new markets.”

That same day, in the capital of beijingDu Peifan, founder of ZhiqingFin, an artificial intelligence (AI) company that focuses on intelligent voice services, was doing his routine work by walking his employees through a checklist serving his banking customers.

The next day, January 22in Yiwu, known as the world’s largest consumer goods wholesale market in the eastern province of ZhejiangWei Lingying, CEO of OMAWine International, a Spanish wine and food importer, is busy taking and delivering orders. Wei even struggled to tighten this Beijing Review interview.

Although they operate in different sectors and play individual roles in the market, all three are part of the strongest component of the Chinese economy: small and medium-sized enterprises (SMEs).

from China SMEs, which represent approximately 99 percent of all businesses nationwide, are the main force behind from China economic and social development. According to a 2020 report from the Ministry of Industry and Information Technology, more than 50% of national tax revenue and 60% of GDP come from SMEs. They create 70 percent of technological innovation and 80 percent of urban employment.

However, these companies face many difficulties and concerns about their future development.

Alive and kicking

COVID-19 outbreaks, rising commodity prices, supply chain issues, and financial difficulties, among others, pose treacherous challenges.

Rising import bills for wine and food products combined with declining demand due to the pandemic made OMAWine International nervous. Compared to pre-pandemic times, wine orders were down 20 percent during the sales season leading up to this year’s Spring Festival, according to Wei.

On the plus side, all three companies are still alive and well, inspiring those who are willing to give entrepreneurship a try.

Saiwei only halted production for a brief period at the start of the COVID-19 pandemic in early 2020 and soon resumed operations. “As gears, we are the inseparable parts that guarantee the rapid operation of from China industrial and supply chains,” Li said. “We, SMEs or private companies, could not just give up and close the business; We are not just companies, but also the economic backbone of our workers’ families.”

trials and tribulations

SMEs are usually gathered in competitive industries, so it is essential that they adjust their business models and actively find new growth opportunities in the new market environment, Zhang said.

Compared with big smart voice companies that offer only a standard product, ZhiqingFin’s customized services are better, especially in the after-sales field, according to Du. In general, the pandemic has spurred technological expansion, and AI is now widely applied. However, funding remains a problem. It is a difficult task for Du to increase the company’s financing to invest in technological capacity and service research.

Pan Gongsheng, deputy governor of the People’s Bank of Porcelainthe country’s central bank, told a news conference in September 2021 that addressing the financing needs of SMEs is high on the regulatory authority’s agenda. Loans to micro and small businesses totaled 17.8 trillion yuan ($2.75 trillion) lately july 2021up 29.3 percent year on year, according to Pan.

High-tech SMEs like Saiwei also receive financial assistance. Unlike regular companies that produce heavy machinery, Saiwei caters to customers’ specific requirements. Last year, you spent about 30 million yuan ($4.7 million) in research and development.

The company has been included in the Little Giant Firms program, which covers small companies in their early stages of development, all focused on cutting-edge technologies. This could bring Saiwei millions of yuan in research support over the next year. Du’s company has also applied for the program.

So what does the future hold for from China SMEs? The answer is twofold: green and innovation-led development will be two key directions to promote its high-quality growth in the 14th Five-Year Plan period (2021-25), according to a government guideline.

SOURCE Beijing Review


Please enter your comment!
Please enter your name here

Share post:


More like this