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Respond to small and medium-sized enterprises in the Yangtze River Delta region in the context of the financial crisis

Author: QianWenJun From: www.yourpaper.net Posted: 2010-02-27 08:40:05 Read:

Paper Keywords: small and medium-sized enterprises; financial crisis; deal

Abstract:
article from the reality of the small and medium business management, analysis of the plight of the development of SMEs in the Yangtze River Delta region in the context of the current international financial crisis, and made a deal with the financial crisis, out of the plight of enterprise development solution ideas .


Yangtze River Delta region as the forefront of China's reform and opening up, focus on the country about 32% of small and medium-sized enterprises, has become China's most economically dynamic economy with huge potential for economic development. However, since the second half of 2008, subject to the combined effects of the international financial crisis and rising domestic production costs and other factors, the region's small and medium enterprises development trend of the overall decline, some companies even bankruptcy. The face of the crisis, the region's small and medium-sized enterprises how to go out of the woods, which is the main content of this article will explore.

the Yangtze River Delta region causes of the plight of SMEs

(A) the impact of the international financial crisis
After years of development, the Yangtze River Delta region SMEs region separated to form the different regions of industrial clusters, such as the textile industry in Wuxi, Suzhou general electronic components manufacturing and chemical industries, Wenzhou clothing and shoes and so on, most of these industries labor-intensive and foreign trade-oriented enterprises, foreign dependence is too large. The international financial crisis, the global economic recession, a slowdown in economic growth, which led to the original external demand substantial reduction in foreign trade and export-oriented SMEs do not have the order, the stagnation of production. Only Suzhou, Wuxi, for example, the total exports in January-May 2009, respectively, representing a decrease of approximately 32.3% and 26.0%, respectively.

(B) financing difficulties due to funding strand breaks
SMEs, due to their size and strength, its financing capacity is limited, the financial pressure has been more prominent. After the financial crisis, on the one hand corporate orders decreased, making its source of income to significantly reduce; On the other hand, after the financial crisis, commercial banks are more stringent internal risk management and control, although the national policy requirements to increase small and medium-sized credit support to enterprises, but in the actual credit operations of the commercial banks for SME lending audit more stringent. This makes the SME funding pressures increase, the capital chain rupture; difficult the survival of enterprises, some enterprises due to lack of orders and lack of funds, leading to bankruptcy.

(C) to maintain production cost is too large
After rapid economic development since the reform and opening up 30 years, the area of ??land, labor, energy and raw material costs rising, economic development is faced with resource bottlenecks, land bottlenecks serious constraint. In the context of the financial crisis, the orders of the enterprises has been reduced, lack of funds, while enterprises to maintain normal production and energy consumption, human and other production costs did not decrease, resulting in inputs is greater than the output, so a lot of companies have chosen to close their doors rather than continue barely able to maintain production.

(D) their own management problems
Most SMEs in the region, the sense of business and development ideas for business owners decide the direction of the development of enterprises, with the changing business environment in the past by individual operators hard-enterprise development path and has an extensive production management not suitable for the needs of market development, in the face of the crisis and the plight of the business philosophy of SME owners appear to be backward and can not adjust and changing business ideas, leading enterprises can not adapt to changes in the market crisis.

out of the woods , small and medium enterprises in the Yangtze River Delta region to deal with ideas

(A) changes in the development of ideas, promote enterprise restructuring
In the context of the financial crisis, in the face of the development of the plight of SME owners must first take the lead in the transformation of the development of ideas, to fully understand the upgrading and restructuring of enterprises is an inevitable choice. In order to lead the company in a crisis out of the woods, out of the original development mindset, new products to the market demand-oriented, limited development funds into new product development and innovation up, and constantly develop more fit market demand through the promotion of technological innovation, the original value of the products and the competitiveness of enterprises through product innovation to create new market demand, enabling businesses to survive in a crisis, and continue to develop.

(B) changes in business strategy, develop the domestic market
Most of small and medium-sized enterprises in the Yangtze River Delta region are export-oriented foreign trade, in the case of the current international economic crisis has not bottomed out, a significant reduction in external demand, at the same time, China's economy remains a certain percentage of growth, domestic demand has been relatively stable , the government's macro-control and the economic stimulus plan also led to a certain growth in domestic demand, which gives hope for the development of small and medium-sized enterprises of the Yangtze River Delta region. Trapped longing for change, the region's small and medium enterprises should change their management strategies in a timely manner, and in the development of emerging markets abroad, and actively explore the domestic market, domestic demand through increased domestic sales of the product, the development of production.

(C) multi-actively raise, broaden the financing channels
The face of financial pressure and difficulties, small and medium enterprises should carry out multi-channel active financing. On the one hand, leveraging the state has increased SME financing credit support policy, plant, machinery and equipment are objects of interest for loans secured by commercial banks to actively seek enterprise development funds; On the other hand, active use of other capital relief funds difficulties, the current private capital in China has been more active, for SMEs, active use of private capital by enhancing their own credit and to attract private capital to solve the financial difficulties of their own development.

(D) to attract talented people, improve enterprise management
SMEs are mostly family management, business management is largely absent from science at all, the face of the current economic situation, SMEs should visionary departure from the internal management of enterprises, the enterprises existing management and business The idea to sort out improvements to improve the internal management of enterprises. On the other hand, in the unity and good business the backbone of the team at the same time, actively recruiting new talent, the rational development of qualified personnel, adhere to scientific and technological innovation. Enhance the soft power and competitiveness through the improvement of the internal management and personnel development, and actively respond to the current difficulties.

References:

1, the Suke Jiang Yangtze River Delta area of ??policy measures to cope with the international financial crisis [J] Jiangsu textile, 2009 (2).
2, Chen Jianwei SME development in the Yangtze River Delta and Countermeasures [J]. Jiangnan Forum, 2008 (10).
3, white Lin guitar on the government to expand domestic demand four trillion investment plan [J] Southern theory published in 2009 (4).
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