Internal analysis
Author: inf121
A moment of SMEs seems to be suffering in the warm water “frog”
The current predicament of small and medium enterprises, first of all from the macroeconomic background to analyze. Phenomenon of high growth in the next 5-10 years the global economy will enter a slow growth of China’s GDP continued to 10% will be difficult to sustain, but also facing high inflation plagued. Since early last year, the central bank has been 12 times in a row raised the deposit reserve ratio, the current has reached the historical high of 21.5 percent, which led to the shortage of credit markets. SMEs, due to natural reasons, the tightening of macroeconomic policy, the impact on the largest difficulties in financing to financial institutions, is bound to seek private financing, will face the pressure of high financing costs and risk.
From the internal analysis, the rising costs of a mountain of pressure on companies. RMB appreciation, rising labor costs, raw material prices, high financing costs and many other factors to meet, but also face the problem of power cuts and recruitment difficulties, a number of rising costs in the manufacturing enterprise, resulting in corporate profits diluted many companies do not take a single loss, and also a loss of orders. In this case, the low-end manufacturing enterprises and workshops for SMEs to bear the operating pressure, will face the risk of failure.
