Program introduction
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Who's going to save the small and medium enterprises?

near several months, SMEs of bad message have stack to: Guangzhou of clothing factory for orders dropped big area shutdown; Wenzhou South leather, and Porter Mann, and three flag Group 3 home Enterprise for boss fled or mismanagement near bankruptcy; this year Qian two months, artificial rose, and exchange rate rose, and raw materials price rose; labor shortage, and electricity shortage, and funds shortage... SME loss of 15.8%, loss of growth rates as high as 22.3%. And small enterprise, losses situation may more serious......
recently, Wenzhou SMEs Association President Zhou dewen, with "is at stake" to described now SMEs of status, he think, "If currently of money austerity policy not change, if Government does not shots phase saved, assist SMEs financing, whether this year second half of, domestic stock SMEs in the of 40% will will half discontinued, and discontinued even failed. "The first Vice President of the National Federation of Quan Zhezhu forecast: estimated around August there will be a number of enterprises started to die.
development and Reform Commission, according to the 2008, 42 million households in China SMEs accounted for 99% of the total number of enterprises; provided almost 80% of urban jobs. The gross 60% of the total national output; taxes accounted for the total number of the country's total tax revenues 50%; 65% of the national invention patent and 80% of the new product was developed by SMEs. Therefore, the survival of small and medium enterprises is by no means trivial.
2008 end of the year, hit by the global financial crisis, many small and medium enterprises were forced to closed down after nearly 3 years of recovery, economic situation has been improving gradually, and now, economic fundamentals have not changed the inflection point of the fluctuations, and the situation of SMEs seem "difficult than 2008", why?
obviously, begins with Wall Street's financial crisis on China's influence is indirect, but also became a cause of the economic problems we are looking for "scapegoats". This year, SMEs, especially small and micro-enterprises in coastal areas of the severe living conditions, more economies within reason, is in the process of economic strategic structural problems accumulated to a certain degree of concentrated, accumulated over the years systems and integrated product policy. Its crises, embedded in the country's political and economic structure.
the survival of SMEs, should make the whole society, especially the Government think about such issues: they get into trouble, is what institutional factors caused by the? this crisis, should also be on perfecting the market economic system, abolishing the system and policy of "treatment" and "treatment of people outside the" good segregation. After all, the Government should respect the principal position of enterprises in the market economy, safeguard fair rules of the game to provide institutional guarantees, enabling the market to market, the Government's coffers.

ups and downs of SMEs from the seemingly very strange: even after 30 years of ups and downs, SME is still like a little child.
in recent times, the Central Bank raised interest rates and reserve requirements, media reported in Wenzhou, Zhejiang small and medium enterprises to be "failures" effect. China Banking Regulatory Commission and the Zhejiang Province authorities deny the existence of Wenzhou small and medium enterprises "failures", but admitted that its survival is difficult.
in fact, not only in Wenzhou, said the Yangtze River Delta, Pearl River Delta and other large economic areas of small and medium enterprises, today is caught in a predicament, without exaggeration rendering features.
the SME's "existential crisis", and the 2008 financial crisis led to the "failures" have very different, it is accumulated in the years of systems and policies "external treatment", as well as inflation, rising labor costs, higher raw material prices and other factors the comprehensive product and set trigger.
in a sense, crisis of the small and medium enterprises, embedded in the country's political and economic structure.
"power market"
in the shadow of China, "small and medium enterprises" concept, far more complicated than it looks, not personnel, assets and business indicators that can be completely defined. This is a concept of uninterrupted motion, change, reflects precisely the changes of China's political and economic structure. In turn, which affects to some extent the life and death of SMEs.
this situation, are SMEs, and stayed out of the market by the State-owned and private enterprises environment, from the beginning up to now, are not independent of the power, but power-led structure, according to their own will and interests to a field control.
placed under the power control market, logically, that means power what industry wants to earn more, which industry will make more, like real estate and power wanted which are dead, they are hard to live, such as "high pollution and high energy consumption". The strong logic to this degree, nationwide, or even which region to develop, which region development also depends on the kind of logic.
a true market economy formation in a short period. Indeed, China is unlikely to be in a short period of 30 years through the way West for hundreds of years. The reason is that private economic agents interact with the market economy, game levels, you need a spontaneous evolution, at the order level, you will need to provide the institutional basis. Can do things which are not a short time.
but this is not the problem. The problem is that in the process of moving towards a market economy, as well as magic, tried to call a market can be the most efficient allocation of resources, this market is not separated the State and the market, but directly to the market and non-market benefits to serve national needs. Therefore, the power used to dictate to the market, the allocation of its resources, through internal note, tilting of the institutional arrangements, policies and so on, can play in the enterprise's destiny, and grip on the market.
embarrassing which makes our market economy and "market economy" shadow flicker. This enterprise also has to face, in addition to the risks of the market itself, as well as risks from the will to power. In other words, both large enterprises and SMEs, in "power market economy" in the shadow of, directly or indirectly, will inevitably be preset as a tool of nationalism.

fate of SMEs change as a great plan to change Chinese society, China's reform and opening up started in "productivity" not demonstrated an anxiety of institutional legitimacy. And civil changing poverty of material resources are very scarce on the desire of yours. In the late 1970 of the 20th century began, to the mid 80 's the city, were repressed, the private wealth of enthusiasm and greatly released.
during this period, small and medium enterprises, the concept of the Township and the city of its "collectively owned" enterprises, in vibrant form on the historical stage. It has two very favorable external conditions. One is the market demand, in particular, domestic demand for basic consumer goods giant; the other is national, in particular is extremely sensitive to local financial support of local governments. It can be said that in 1992 for the sector, small and medium enterprises to create wealth at that time function and construction guidelines in order to fully fit. This is the golden age for small and medium enterprises.
However, due to private enterprise, private enterprise "key words", pass the test of rigid ideology, SME development, itself a political risk. In order to avoid this risk, many companies have put on a "collective enterprises" the legitimacy of such a hat, to seek asylum.
to the survival of SMEs foreshadowed the crisis. Enter in the mid 1990 of the 20th century, when the tax-sharing system established, the reforms entirely to urban, deep into the State-owned enterprises, township enterprises in both, is still collectively owned enterprises, suddenly lost its appeal to power. Asylum removal in power and "restructuring" boom between their overnight, seem to have mysteriously disappeared.
1994 years later, the extension of the concept of small and medium enterprises, there has been change, mostly private enterprises and State-owned enterprises. At this time, SMEs in the external environment has changed dramatically. Bizhi 80, most prominently as external demand pull powerful levers of China's economy; tax and GDP debut, encourage deeper involvement in the economy of power market, the Government leader in economic development. For private enterprises,
, which is more than 80 a favourable external environment. Because output in GDP in principle fully into the performance appraisal system, it and the Government has interests in common. Private enterprises continue to receive funding, land and tax breaks of Sun and rain, even in labour conflicts, it also get the local asylum. Low labor costs and the survival and development of "path dependence" firmly formed.
so far as the State-owned enterprises, already facing a deadline. Reform of State-owned enterprises, "catch the big and free the small" is bound to be considered inefficient, becomes a burden to banish system; businessmen desire for State-owned assets also "restructuring" moving swiftly forward.
until 2005 or so, China's new economic structure has been formed. "Small" so that State-owned enterprises are mostly disappeared, removing the burden and "catch" has perfected the dominance of SOEs, the monopoly State-owned enterprises. This time, the "SME" extension and change of the concept, become synonymous with private enterprise basically.
this new of economic structure reflected for a II Yuan economic structure: a "Yuan" is giant no PA like Central and State-owned enterprises, they has huge of market and system resources, get power of directly asylum, enjoy "internal people treatment", can grab huge of "market returns"; another a "Yuan" is is accounted for enterprise total 99% of private, they while bear heavy of tax, on the in funds and policy offers Shang edge of, in industry chain in the is located in low-end, more to is a "sweat economic".
one or two economic structures declared: distances itself from power companies, less able to live very well and distances itself from local interests, the more we can't earn money. Entities of the small and medium enterprises, precisely in line with these two characters.
from 1978 along the way, small and medium enterprises through the Township of stages, from risks of collectively-owned enterprises, buffering of the losing State-owned enterprises, in addition to bigger and stronger and "turn" than they had to face as a whole has changed reality: speculation of the whole society, China's economic structure "in transition" pressure from the demands of the new generation of labour rights. This is the crisis.
in the ruling ideology of the Government, social management, economic growth, performance assessment methods have changed circumstances, small and medium enterprises, has come to a crossroads, needs to be transformed.
the end of "external treatment"
trouble, "save small and medium enterprises" should be a consensus, especially the responsibility of the Government.
is quite simple, however, SMEs collapse or structural return to monopoly of State-owned enterprises, is conducive to speculative situations do not do entity joining real armies of Chinese herbal medicines, FRY, FRY, fried food, whether it's created huge unemployment, and accelerating prices, exacerbated the economy's bubble, it will be a nightmare.
have a bunch of data has been replicated in China, SMEs accounted for 99% of the total number of enterprises, provided almost 80% of urban jobs, to create the ultimate product and added value of GDP 60%, the tax amounts up 50% of the total national tax revenue. Warning information clearer – small and medium enterprises of every crisis is tantamount to a spasm of the socio-economic structure in China and its disastrous economic run its course beyond category and could trigger social disaster.
not only the small and medium enterprises, and society as a whole, as far as the public interest, need Government.
based on China's urban-rural structure, as well as the complexity of unbalanced regional development, called the "Lewis turning point" still very far away, but it did after 30 years of China's economic development, improvement of living standards and labor rights awakening, on the whole has been on the "sweatshop" model to say "no". In this sense, said rising labour costs led to the survival of SMEs, just a description, but in the past, "sweatshop economy" is reasonable, and should continue as a background preset, but this pattern of reminding us of the survival of the primitive accumulation of capital, has fallen behind the times.
ensure that workers ' interests are corporate survival and continued development of the economy as a whole, and the need for social stability. The Government liable to corporate tax cuts to offset the costs, compensation. And the heavy tax burden itself, is one of the factors contributing to the survival of enterprises, must act.
at some deep level, the survival of SMEs, should make the whole society, especially the Government think about such issues: they get into trouble, which caused by institutional factors. Market economy calls for abolishing the system and policy on the "treatment" and "external treatment" segment. It also calls on the Government to respect the dominant position of enterprises in the market economy, safeguard fair rules of the game to provide institutional guarantees, enabling the market to market, the Government's coffers.


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