“Zero” export growth: how small and medium-sized enterprises can save themselves and others
“Guangdong’s exports may experience zero growth this year, with negative growth in the first half and slight growth in the second half.” Professor Wang Cong, director of the Department of Finance at Jinan University, is worried. This zero growth data comes from a survey organized by the Guangdong Provincial Department of Foreign Trade and Economic Cooperation. The expert group’s basic The judgment is that the growth rate of export trade and utilization of foreign investment will stagnate or decline this year.
In Dongguan, which is highly dependent on foreign countries, small and medium-sized enterprises may face a more difficult situation this year. According to statistics from Huangpu Customs, Dongguan’s exports registered negative growth for the first time in October last year. Exports that month were US$5.91 billion, a decrease of 4.5%. , dropped for the first time since February 2005. It is obvious that companies alone are unable to save themselves. The question is, how can government departments rescue?
Corporate sample sells furniture to Saudi Arabia
“It is expected that our company’s foreign trade performance in 2008 will increase by 120% compared with the same period in 2007.” The person in charge of Dongguan City Window Furniture Co., Ltd. said that this company specializes in manufacturing panel furniture. The owner, a company established only 6 years ago, did not feel the chill in the cold winter.
The secret lies in a two-pronged approach to domestic and foreign markets. The company’s domestic specialty store sales network has covered all first-class cities and most second- and third-class cities across the country, with more than 600 specialty stores across the country. In the international market, products have been sold to more than 50 countries including Australia, Italy, the United Kingdom, Denmark, Japan, Mexico, Singapore, Poland, Saudi Arabia, and Thailand.
The person in charge said that the company plans to open three brand stores in Saudi Arabia in the near future. Enterprise Sample Two Major Transformations in Dalang Woolen Textile Industry
Dalang Woolen Textile Industry is accelerating the realization of “two major transformations” in the woolen textile industry, from product management to brand management, and from a production base to a modern wool textile trade city.
Dalang Town is currently formulating a pilot work plan for Dalang Town to create a regional international brand. The town finance has allocated 2.5 million yuan as start-up capital, completed the design of the “Dalang” graphic trademark, and proposed “Dalang” in all domestic categories. ”, “Dalang Wool Weaving” trademark registration application.
Internationally registered the “Dalang” graphic trademark in more than 80 countries and regions, and organized enterprises to participate in the China Textile and Apparel Trade Show held in New York, USA, with the unified logo of “Dalang Wool Weaving”.
On December 24, 2008, Dongguan City held a city-wide work conference on small and medium-sized enterprises. Liu Zhigeng, Secretary of the Dongguan Municipal Party Committee, said: “The government should comprehensively improve the service level for small and medium-sized enterprises.”
He requested that all levels and departments of the city We must stand at the height of developing small and medium-sized enterprises and promoting economic transformation, fully support small and medium-sized enterprises, sincerely serve small and medium-sized enterprises, further create an environment and conditions conducive to the development of small and medium-sized enterprises, and strive to promote the development of small and medium-sized enterprises by improving service levels.
Dongguan Secretary’s Views on Small and Medium Enterprises Nandu: Dongguan has received a lot of attention from all walks of life. Premier Wen has also visited Dongguan several times to conduct research and encourage enterprises. What is the development trend of Dongguan’s small and medium-sized enterprises?
Liu Zhigeng: Dongguan’s small and medium-sized enterprises have strong manufacturing capabilities and have formed a strong agglomeration effect. There are many export-oriented enterprises, which are fully involved in foreign trade and have a strong ability to develop international markets. Dongguan has many institutions serving small and medium-sized enterprises and has a good momentum of transformation during the crisis. By the end of 2008, the total number of municipal-level private technology companies will reach 1,700, and the total number of provincial-level private technology companies will reach nearly 470.
Despite the financial crisis, market demand is still there, corporate production capabilities are still there, and advantages such as industrial supporting facilities are still there. Dongguan’s small and medium-sized enterprises have more than 600 main products. The production capacity and output of some products rank first in Guangdong Province, and their production capacity accounts for an important share of the market.
On this basis, a large number of professional towns with complete industrial supporting facilities have emerged in Dongguan. Industrial clusters such as Shilong Electronic Information, Dalang Woolen Weaving, Humen Clothing, Changan Hardware Mold and Dalingshan Furniture have successively been recognized as provincial industrial cluster upgrades. Demonstration areas, Humen and Chang’an were recognized as national torch plan industrial bases, and Dalang Town became a provincial pilot town for creating regional international brands.
Nandu: As of the end of October 2008, there were 91,000 enterprises in Dongguan, 99% of which were small and medium-sized enterprises. This place, once known as a “factory”, is now unfortunately at the forefront of the impact of the financial tsunami on the domestic real economy. Why do you think small and medium-sized enterprises in Dongguan have been hit harder than other regions?
Liu Zhigeng: Most enterprises are labor-intensive and processing trade enterprises, which are at the low end of the manufacturing industry chain. They are highly dependent on exports, lack their own brands and independent technologies, and have weak core competitiveness and resistance to fluctuations in the external environment. The capabilities are poor, and Dongguan’s industrial level is at the low end.
Although Dongguan has formed several industrial clusters, the level of supporting facilities is not high, and the “small, scattered, and weak” pattern has not been fundamentally reversed; the development level of industry organizations is not high, the service capabilities for small and medium-sized enterprises are limited, and the number of public service platforms is relatively small. , the mechanism is not flexible enough.
In times of crisis, confidence is important Nandu: Some people believe that the export situation in Guangdong this year is not optimistic. How should companies respond?
Liu Zhigeng: The impact of the international financial crisis on the financial market, capital market and real economy is still continuing, leading to a decline in orders and profits for our city’s enterprises. In the face of difficulties, the majority of small and medium-sized enterprises must dialectically view the changes in the macroeconomic situation and the impact of the financial crisis and strengthen their confidence in development.
From a macro perspective, after the financial crisis, various countries have introduced many measures to resolve the crisis, which are unprecedentedly powerful. The Party Central Committee and various provinces and cities responded quickly after the crisis, and successively introduced a series of policy measures such as lowering loan interest rates, increasing the tax rebate rate for export products, stabilizing the exchange rate, lowering the deed tax, and temporarily exempting real estate stamp taxes to stimulate domestic demand, stimulate consumption, and provide macro-level support. Enterprise Development.
Nandu: In what aspects do you mean confidence?
Liu Zhigeng: Despite the financial crisis, market demand is still there, corporate production capabilities are still there, and advantages such as industrial supporting facilities are still there. In the next few years, we are considering investing 140 billion yuan to implement the “four major projects” including infrastructure and modern industrial systems. This will surely bring unlimited business opportunities.
In addition, when the external environment is severe, it is often the best time for companies to work hard on their internal skills and reborn. The occurrence of the financial crisis has an impact on both our company and our competitors; it has not only led to a reduction in orders and a decline in profits for our company, but has also led to a decline in the prices of domestic and foreign resources, energy, raw materials, and factors such as technology, talent, and capital in various countries. Cost reduction; not only allows internal conflicts within the company to break out in a short period of time, but also allows the company to calm down, clarify its thinking, and plan for the long term.
Many technology companies in Dongguan have always attached great importance to technology research and development and product innovation, maintaining high product added value, and gained more market share during the crisis. The government improves service levels
Nandu: Dongguan’s small and medium-sized enterprises have relatively strong radiating ability and ability to explore international markets. What plans does the government have to guide enterprises to explore the market?
Liu Zhigeng: We require relevant functional departments and industry associations to guide enterprises to understand the country’s policy information on stimulating investment and expanding domestic demand, and seize policy opportunities to actively participate in the construction and operation of key projects or their supporting projects.
On the other hand, the government should guide enterprises to explore emerging markets at home and abroad.
For example, we are vigorously promoting the practices of Hsu Fuji and other Hong Kong and Taiwan companies in exploring the domestic market, and encouraging companies to take advantage of their strong manufacturing capabilities to develop marketable products that meet domestic multi-level consumer needs, especially the needs of the vast rural market.
The government should guide enterprises to change the practice of “putting eggs in the same basket”, adjust the export market structure, shift their focus from traditional European and American markets to emerging markets such as Russia, Latin America, and Africa, and cultivate growth points in emerging markets.
In addition, new fields and new industries are constantly emerging, providing broad development space for small and medium-sized enterprises. For example, in terms of Internet industrial design and process design, new business demands for family education, sports and health have increased significantly.
Nandu: Dongguan business people report that the current big problem is financing difficulties. What do you think the government can do to help small and medium-sized enterprises?
Liu Zhigeng: Currently, we have five “billion” projects to help enterprises. In addition, we will further strengthen mutual trust and cooperation between banks and local governments, banks and enterprises, and improve the supporting collaboration and standardized operation of small and medium-sized enterprise guarantee institutions. Credit guarantee system, simplify guarantee procedures, carry out on-loan, guaranteed loan and other businesses, establish and improve the reward mechanism of guarantee risk compensation mechanism, and actively provide loan services to small and medium-sized enterprises.
Actively explore new financing channels and improve local capital trading markets such as property rights transactions, share custody, and pledge pawns for unlisted enterprises in our city to facilitate small and medium-sized enterprises to raise funds through equity financing, project financing, and intangible assets.
All levels and departments in the city must fully support small and medium-sized enterprises. On the one hand, we should increase policy implementation and optimize the development environment for small and medium-sized enterprises; on the other hand, we should increase support and services to solve outstanding problems in enterprise development.
For example, we will formulate government procurement methods, give priority to local companies and products under the same conditions, and ensure that a certain proportion of products in annual government procurement come from Dongguan; we will strive to reduce the burden on enterprises and comprehensively clean up the fees and fines involving enterprises. Standardize the collection and punishment behavior and reduce corporate costs.
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