SMEs rise to challenges in a more favorable business environment

Beijing, October 8, 2022 /PRNewswire/ — By Beijing RevOh It’s on January 2110 days before the Spring Festival From January 31 to February 6 (this year) Baoji Saiwei Workshops, a heavy machinery manufacturer in Baoji; Shaanxi province in the northwest China, are on a high speed to complete their orders. In the year By the end of 2021, Cyway had received the order for the first half of 2022. Deputy General Manager Lee Hui They spoke Beijing Review, “We need to deliver the products on time and explore new markets.”

On the same day in the capital BeijingDu Peifan, the founder of Ziqing Fin, an artificial intelligence (AI) company that focuses on smart voice services, was doing his routine work, taking his employees through a checkbook serving their bank customers.

the next day, January 22in the eastern province of Yiwu, which is known as the world’s largest consumer goods market Zhejiang, Wei Lining, CEO of OMAWine International, a Spanish wine and food importing company, is busy taking and delivering orders. Wei struggled to even squeeze in this one. Beijing review Interview

Although they operate in different sectors and play a unique role in the market, all three are a very strong part of the Chinese economy: micro and small enterprises (SMEs).

China SMEs, which account for 99 percent of the total nationally, are the driving force behind it. China Economic and social development. According to the Ministry of Industry and Information Technology’s 2020 report, more than 50 percent of domestic tax revenue and 60 percent of domestic product revenue come from SMEs. They create 70 percent of technological innovation and 80 percent of urban jobs.

However, these companies face many challenges and are concerned about their further growth.

Alive and kicking

The outbreak of Covid-19, rising commodity prices, supply chain problems and financial difficulties, among others, pose treacherous challenges.

The rising cost of importing wine and food products, combined with reduced demand due to the pandemic, has left OMA International on the edge. Compared with before the epidemic, wine orders during this year’s pre-Spring Festival sales season dropped by 20 percent, Wei said.

On the bright side, all three companies are still alive, inspiring those willing to take the entrepreneurial plunge.

In early 2020, during the outbreak of the Covid-19 pandemic, Saiwe stopped production for a short period of time and soon resumed operations. “Like gears, we are inseparable parts that ensure fast operation China industrial and supply chains,” Lee said. “We cannot simply give up SMEs or private companies and close shop; We are not only enterprises but also the economic backbone of our employees’ families.

trials and tribulations

SMEs are often clustered in competitive industries, prompting them to adjust their business models and actively seek new growth opportunities in the new market environment, Zhang said.

Compared with large intelligent speech companies that only provide one standard product, Ziqinfin’s customized services are better, especially in the field of after-sales, said Du. The epidemic has encouraged the spread of technology in general, AI is now widely applied. Still, financing is still a problem. Growing the company’s bankroll to invest in technological capabilities and service research is a daunting task for Du.

Pan Gongsheng, deputy governor of the People’s Bank ChinaThe country’s central bank said in a press release. September 2021 Solving the financial needs of SMEs is high on the regulatory authority’s agenda. Loans for small and medium enterprises in total 17.8 trillion yuan (2.75 trillion dollars) as of late July 2021According to Pan, it’s up 29.3 percent year over year.

Hi-tech SMEs like Saiwei also get funding. Unlike normal enterprises that produce heavy machinery, Cyway meets specific customer requirements. Last year, he invested approx 30 million yuan (4.7 million dollars) in research and development.

The company is part of the Little Giant Firms program, which covers small enterprises at an early stage of development, all focused on high-tech technologies. This could bring Saiwe millions of yuan in research support next year. Du’s company also applied for the program.

So what will the future hold? China SMEs? The answer is twofold: Innovation-led and green development will be two key directions to promote high-quality development in the 14th five-year plan (2021-25), according to government guidelines.

Source Beijing review