SMEs rise to challenges in a more conducive business environment

BEIJING, October 8, 2022 /PRNewswire/ — Wed Beijing RevOpinion: On 21th January10 days before the Spring Festival holidays (from January 31 to February 6 this year), the workshops of Baoji Saiwei, a heavy machinery manufacturer in Baoji, Shaanxi Province in the north-west China, are in full swing to complete their orders. By the end of 2021, Saiwei had already received its orders for the first half of 2022. Deputy General Director Li Hui said beijing review, “We have to deliver the products on time and open up new markets.”

On the same day, in the capital of BeijingDu Peifan, founder of ZhiqingFin, an artificial intelligence (AI) company focused on intelligent voice services, did his routine job and guided his employees through a checklist in the service of their bank customers.

The next day, 22nd of Januaryin Yiwu, known as the world’s largest wholesale market for consumer goods in Eastern Province Zhejiang, Wei Lingying, CEO of OMAWine International, a company that imports Spanish wine and food, is busy taking and delivering orders. Wei even had trouble fitting this Beijing review Interview.

Although they operate in different sectors and play individual roles in the market, all three are part of the strongest component of China’s economy – small and medium-sized enterprises (SMEs).

of China SMEs, which make up around 99 percent of all companies nationwide, are the driving force behind it of China economic and social development. According to a 2020 report by the Ministry of Industry and Information Technology, over 50 percent of national tax revenues and 60 percent of GDP come from SMEs. They create 70 percent of technological innovation and 80 percent of city jobs.

However, these companies face many difficulties and concerns about their further development.

Healthy and happy

The COVID-19 flare-up, rising commodity prices, supply chain issues and funding difficulties, among others, pose treacherous challenges.

Soaring spending on importing wine and food products coupled with falling demand due to the pandemic is making OMAWine International nervous. Compared to pre-pandemic times, wine orders fell 20 percent during this year’s Spring Festival sales season, according to Wei.

On the plus side, all three companies are still alive and inspiring those willing to try their hand at entrepreneurship.

Saiwei only briefly halted production at the onset of the COVID-19 pandemic in early 2020 and soon resumed operations. “Like gears, we are the inseparable parts that guarantee the fast functioning of of China Industrial and supply chains,” Li said. “We, SMEs or private companies, could not just give up and shut down operations; we are not only a company, but also the economic backbone of our working-class families.”

Trials and Tribulations

SMEs usually congregate in highly competitive industries, so it is imperative for them to adjust their business models and actively find new growth opportunities in the new market environment, Zhang said.

Compared with large intelligent speech recognition companies that only offer a standard product, Du said ZhiqingFin’s customized services are better, especially in the post-sales area. The pandemic has generally stimulated technological expansion, with AI now in widespread use. But funding remains a problem. It is a difficult task for you to increase the company’s bankroll to invest in technology capabilities and service research.

Pan Gongsheng, Deputy Governor of the People’s Bank of Chinathe country’s central bank said at a news conference in Sep 2021 that meeting the financing needs of SMEs is high on the regulator’s agenda. Loans to micro and small businesses totaled 17.8 trillion yuan ($2.75 trillion) recently July 202129.3 percent more than last year, according to Pan.

Hi-tech SMEs like Saiwei also receive financial support. Unlike ordinary companies that manufacture heavy machinery, Saiwei caters to specific customer needs. Last year it invested about 30 million yuan ($4.7 million) in research and development.

The company has been accepted into the Little Giant Firms program, which covers small companies in their early stages of development, all focused on high-end technologies. This could bring Saiwei millions of yuan in research support in the coming year. Du’s company has also applied for the program.

So what does the future hold for of China SME? The answer is twofold: According to a government guideline, innovation-led and green development will be two key directions to promote their high-quality growth in the period of the 14th Five-Year Plan (2021-25).

SOURCE Beijing Review

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