Five problems in the "export road" of small and medium-sized hardware enterprises in China

The fate of SMEs is directly related to the overall economic situation of the country. Minister of Industry and Information Technology Li Yizhong said in response to media questions at the Information Center of the Third Session of the 11th National People's Congress: "SMEs account for 99% of the total number of enterprises in the country, 60% of the total economy, and 50% of the profits and taxes paid. In particular, its employment accounts for 80%.” SMEs are the new force for national technological innovation and an important force for promoting China’s economic restructuring.

After China's accession to the WTO, the state has emphasized the combination of "bringing in" and "going out". At present, China's small and medium-sized hardware enterprises "going out" has ushered in a rare period of strategic opportunities. However, while China's small and medium-sized hardware companies are carrying out international operations, they have also revealed that they are facing a series of major problems that need to be solved urgently.

First, financing difficulties
Under the impact of the global financial crisis, since 2008, the problem of financing difficulties for small and medium-sized hardware companies has become more prominent. A considerable number of small and medium-sized hardware companies are facing the dilemma of capital chain breaks, and even in the state of production suspension and semi-discontinuation. In foreign trade and transnational operations, financing difficulties have led many small and medium-sized hardware companies to be discouraged, which has greatly hindered the development of enterprises and has become a major factor restricting the level of international competitiveness of small and medium-sized hardware enterprises. Small and medium-sized hardware companies have weak market development capabilities and difficult business development due to insufficient self-owned funds, difficult loans and few financing channels. To go out, enterprises must invest a lot of money in market research and development, establish sales channels, and organize large-scale production. Therefore, financing has become the biggest difficulty for small and medium-sized hardware companies to go global, and has greatly hindered the development of enterprises. It has become a major factor restricting the level of international competitiveness of small and medium-sized hardware companies. Mainly reflected in the following two aspects:

First, the issue of indirect financing.

In terms of indirect financing, due to the asymmetry of information, commercial banks are still unable to meet the demand for loans from many small and medium-sized hardware companies. Faced with a wide range of small and medium-sized hardware companies with a wide range of industries, different domestic and international competitions, and uneven technical levels, it is difficult for commercial banks to make accurate pre-lending judgments. If banks are required to make individualities for each company with different conditions. If the judgment is made, the transaction cost of the bank will be greatly increased. Before the interest rate is liberalized, the commercial bank will not be able to offset the additional loan cost by raising the interest rate of the loan. Therefore, the bank's “reluctance to lend” to small and medium-sized hardware companies has arisen.

Second, the issue of financing guarantees.

The financing guarantee system is not perfect. Although there are many guarantee institutions at present, there are only a few guarantee risks for independent guarantees, but the risks that banks assume for guarantee institutions are generally only 30%. In addition, the establishment of risk compensation and control mechanisms for guarantee institutions has not been perfected. As a guarantee institution, it receives government compensation and compensation funds are also limited. At present, the most active small and medium-sized enterprises in Zhejiang, like small and medium-sized hardware companies in other parts of the country, are also facing a “bottleneck” in financing.

Second, the international competitiveness is poor
Small and medium-sized hardware companies have gone out, and there are still many shortcomings in terms of international competitiveness. Insufficient understanding of the international trade environment; weak international concept, low international credit; low level of production technology, low product level; narrow export channels and fierce competition; serious problems in the development and protection of independent intellectual property rights; lack of autonomy Brand awareness and so on. These aspects have severely restricted the improvement of the economic efficiency of small and medium-sized hardware companies in the international market.

1. Not enough knowledge about the international trade environment.

The lack of understanding of the international trade environment is the fundamental reason for the poor international competitiveness of small and medium-sized hardware companies. My overseas companies do not understand local laws and regulations, and at the same time neglect the balance of interests with local parties. Conflicts of interest often occur. In particular, conflicts between the interests of the country, the interests of the local interest groups, and the interests of the people in the host country have increased, and conflicts have occurred. The ancients said: knowing oneself and knowing oneself, there is no war. Regrettably, many small and medium-sized enterprises in China have not paid enough attention to the economic development policies of the current government of trading partners and the attitude of international trade in a certain industry, causing considerable economic losses to the state and enterprises.

A small and medium-sized hardware company engaged in international trade operations needs to comprehensively understand the business law, trade policy, government intervention measures, economic and humanities, etc. of the trading partner countries with the help of the strength of international business consulting companies. Then develop the company's countermeasures, that is, the market prospects are good, then open up, or take the initiative to give up. Analysis of the international marketing environment, understanding of environmental threats, and grasping market opportunities are prerequisites for any company to enter the international market and carry out international marketing activities. Especially for small and medium-sized enterprises with small scale, limited resources and weak strength.

2. The concept of internationalization is not strong and the international credit is low.

Generally speaking, small and medium-sized hardware enterprises have low international concept and low international credit, which is an important factor hindering the development of international e-commerce for small and medium-sized hardware companies.

The concept of internationalization of China's small and medium-sized hardware enterprises is still relatively backward, thus weakening the awareness of exploring foreign markets. In many areas, small-scale business operations lack the awareness of exploring the international market, and the government's policy measures to promote enterprises to “go global” are not enough, resulting in the lack of sufficient incentives and initiatives for SMEs to explore the international market.

The credit awareness of Chinese enterprises is weak, the lack of credibility and honesty in commercial transactions, and the related laws and regulations on e-commerce are still blank. The lack of effective credit management systems and means makes the credit risk of international e-commerce transactions of small and medium-sized hardware enterprises very large. Due to the difficulty of online user authentication, most small and medium-sized hardware companies have orders to dare to ship; there is a demand for not to sign the order; there are documents that do not dare to settle. In the e-commerce transaction in China, malicious fraud, counterfeiting, false advertising, contract breach, trademark infringement, online auction, infringement of the legitimate rights and interests of consumers, illegal sales of prize-winning sales services, failure to perform after-sales service agreements, etc. It has affected the progress of Ningbo enterprises in conducting e-commerce transactions.

3. The level of production technology is low and the product level is not high.

The problem of low production technology level and low product level of SMEs has seriously restricted the improvement of the economic efficiency of small and medium-sized hardware enterprises in the international market. This is the main reason for the poor international competitiveness of small and medium-sized hardware companies.

China's small and medium-sized hardware companies engaged in foreign trade operations often have insufficient international competition for product innovation. The direct consequence of the lack of product innovation in small and medium-sized hardware companies is that a large number of small and medium-sized hardware companies have a large number of low-cost homogeneous labor-intensive products, and because of the lack of necessary industry norms and constraints, resulting in constant international trade disputes, Deteriorating the environment for international operations. In recent years, the low-quality, low-cost and extensive foreign trade business model of small and medium-sized hardware companies is constantly being subject to dumping allegations, environmental allegations and product safety allegations, and even vicious incidents in which warehouses are burned and goods are confiscated by customs.

The products exported by China's small and medium-sized hardware enterprises are mostly low-grade products with similar products. They are affected by factors such as capital and technology, and the quality is often unstable. In recent years, the EU has frequently filed dumping and technical allegations around low-cost energy-saving lamps, low-cost lighters and other primary products, which has made many small and medium-sized enterprises tired of coping with difficulties. There are indications that small and medium-sized hardware companies only occupy the international market by low-quality and low-cost products. The growth pattern may have come to an end.

4. The export channels are narrow and the competition of enterprises is fierce.

The narrow channels of export products and fierce competition among production enterprises are another factor that China's small and medium-sized hardware enterprises are difficult to win in the international market competition. Although China's foreign trade has developed rapidly and foreign trade institutions have increased more, it still cannot meet the demand for product exports.

Due to the small scale of small and medium-sized hardware enterprises, on the one hand, the operating costs are high, the competition is fierce, and the economic benefits are lower. On the other hand, the small and medium-sized hardware enterprises are weak, and there is no standardized logistics management for foreign trade products, which hinders the products from going out. Steady growth. In particular, a large number of foreign trade channels are in the hands of foreign companies. These foreign companies are strong and good at price reduction. Coupled with fierce competition from production companies, many small and medium-sized enterprises that have gone out are forced to live on the line of life and death.

Although domestic and international public opinion said that the 21st century will be China's century, China will become the world's factory, but this assembly-type production profit is extremely low, and a large amount of profits are earned by middlemen. As pointed out in the US newspapers, the United States has benefited the most from "China's assembly." This is why China's small and medium-sized hardware companies seem to be producing a good image of production and success. In the end, the capital chain is short, broken, and even unable to sustain. The main reason for normal business.

5. There are serious problems in the development and protection of independent intellectual property rights.

SMEs in China often lack the awareness and ability to develop and protect their own intellectual property rights, which has become the most prominent problem for enterprises to compete poorly in the international market. As China has not paid enough attention to the intellectual property rights in the independent innovation of small and medium-sized hardware enterprises, at the same time, it has not applied for the patent protection market. As a small and medium-sized hardware enterprise that accounts for more than 99% of the total number of enterprises in the country, there are serious intellectual property problems. . Therefore, these small and medium-sized hardware companies have difficulty entering the international market. These issues include:

First of all, intellectual property awareness is generally low. China's small and medium-sized hardware enterprises generally lack sufficient awareness of intellectual property rights. There are generally no innovations in manufacturing, no innovation in property rights, no property rights in applications, and no application protection. In particular, quite a few SMEs generally do not understand their own intellectual property rights and do not respect the intellectual property rights of others. They are still taking the road of counterfeiting, infringement of other patented technology products, and even serious consequences in business and law.

Secondly, the level of intellectual property creation is low, and there is a serious lack of technology and products with independent intellectual property rights. In particular, core technologies lacking independent intellectual property rights have high dependence on foreign technology. According to the survey data of the National Bureau of Statistics, more than 99% of small and medium-sized hardware companies in China have never applied for patents.

Thirdly, intellectual property management is very weak, even in a blank state, and the intellectual property strategy of small and medium-sized hardware companies is even missing. The vast majority of SMEs have not yet carried out IPR management, lack of IP management systems and institutions, and the development of IP strategies is basically in a vacuum.

Finally, the level of intellectual property utilization is low, and the social professional service platform supporting the industrialization of intellectual property in small and medium-sized hardware enterprises is lacking. On the one hand, small and medium-sized hardware companies are generally not good at using their own intellectual property rights; on the other hand, because China's social professional service platform to support the industrialization of small and medium-sized enterprises is lacking, small and medium-sized hardware companies are seeking universities, research institutes, and social inventors. When there is a subject's intellectual property technology, there is a lack of path.

The 17th National Congress of the Communist Party of China proposed "to improve the capacity for independent innovation, build an innovative country" and "implement an intellectual property strategy." We know that the battle for patents is no longer news. Many international giants have also been involved in lawsuits, but their countermeasures are high and their experience is more sophisticated. However, for Chinese companies, this is still a fresh topic. Insiders pointed out that the digital audio industry market has matured in the 1990s, and the international patent layout industry has been completed. There is no advantage in China in this field. Therefore, there will be more and more patents involved in the future. At present, foreign companies have not applied for patents in China. Once the situation changes, it will greatly weaken the advantages of Chinese enterprises, and the consequences will be even more terrible. Relevant experts believe that as more and more enterprises in China go out to explore overseas markets, patents will become an unavoidable problem.

6. Lack of awareness of independent brand building.

The lack of well-known brands has led to the low negotiation capacity of China's foreign trade small and medium-sized hardware companies in the international market, and its low-profit situation is difficult to change in the short term. Due to the high risk and long cycle of R&D behavior, China's small and medium-sized hardware companies have a short operating life. Therefore, many companies are not willing to put too much energy into the R&D of the brand, and they will not put more energy into it. In the construction of brand image, the brand influence of China's small and medium-sized hardware export enterprises is difficult to obtain qualitative improvement in the short term. Therefore, SMEs in the export process highlighted another outstanding problem in China's foreign trade exports: the lack of awareness of the establishment of corporate own brands.

First, the weakness of China's small and medium-sized hardware export enterprises in the production of their own brand products is very obvious. According to the survey results of more than 500 small and medium-sized export enterprises in Zhejiang, Guangdong, Jiangsu, Shandong, Beijing and other provinces and cities, more than 80% of the products produced by the company have full or most of the imitation, independent research and development, with independent intellectual property rights. The product ownership rate is less than 5%; the proportion of enterprises with self-owned brand products is less than 3%, and the enterprises with self-owned brands having certain popularity among similar products account for less than 1% of the total number of enterprises surveyed.

Second, due to the lack of awareness of establishing a self-owned brand, China's small and medium-sized hardware companies lack the initiative and voice in product pricing and trade choice. Because there are no well-known brands established, China's export companies often do not have the initiative to price products. China's independent research and development, with independent intellectual property rights and influential private label products, product substitution is very strong, companies have to lower prices to gain competitive advantage. In addition, the enterprise products without brands are highly substitutable, so the competition in the domestic industry is becoming more and more fierce. The brand awareness of small and medium-sized hardware companies is low, and the market development in the process of foreign trade is very difficult.

To achieve a substantial increase in the proportion of private-label products in export products, through the targeted and effective technological innovation of enterprises to achieve product upgrading and the international high-end industrial chain to China's scale transfer, must solve the SMEs Many practical issues of export innovation and structural adjustment of export products are placed in prominent and important positions.

Third, lack of management talent
Lack of talent has always been a big problem that has plagued the development of SMEs. It is even more urgent for small and medium-sized hardware companies to go out and meet the needs of experienced foreign trade management talents and e-commerce technical talents. Most small and medium-sized hardware companies have few talents in these two aspects, and the overall quality of employees is not very high.

First, there is a lack of experienced foreign trade management talents.

Most small and medium-sized hardware companies in China lack experienced foreign trade management talents, and the overall quality is generally low. We know that if we want to do a good job in foreign trade, we often need a lot of relevant personnel, such as customs brokers, translators, foreign trade negotiators, foreign-related laws, accounting, etc. These people are indispensable in foreign trade activities. However, for most small and medium-sized hardware companies, it is obviously impossible to equip the above-mentioned personnel. After all, enterprises should consider the issue of operating costs.

Second, there is a lack of excellent e-commerce technology talents.

The lack of excellent e-commerce technical talents is a key factor restricting the implementation of foreign export transactions by small and medium-sized hardware companies. According to the introduction of small and medium-sized enterprises, many small and medium-sized enterprises in Ningbo have Chinese and English websites, but many of them are asking others to do it, and they are not doing well. They do not reflect the purpose that enterprises want to achieve. They need professionals who are webpages. At present, many small and medium-sized hardware companies that go out have the idea of ​​joining the era of e-commerce, but such good ideas often stop because of the lack of relevant talents.

Third, small and medium-sized hardware companies also have shortcomings in personnel training.

Many small and medium-sized hardware companies are short-sighted in their business strategy of going global. They only want to quickly recover capital, and often ignore the culture of enterprises going out and the cultivation of personnel. Therefore, the talent team is unstable, and the frequent business backbone is also a common problem for SMEs. SMEs must not only strive to absorb talents, but also intensify their efforts to train talents. It is imperative to cultivate talents, introduce talents, and retain talents. The talent strategy is the foundation for ensuring the international development of enterprises.

Fourth, the company's own resources are limited
Many small and medium-sized hardware companies are limited by their own resources and have certain limitations in engaging in international trade. Mainly reflected in two aspects: the enterprise management system is unreasonable; lack of confidence in entering the international market; it is difficult to grasp the changes in the international market environment.

1. The enterprise management system is unreasonable.

The unreasonable management system of enterprises hinders the optimization and development of small and medium-sized hardware enterprises. We know that small and medium-sized hardware companies have serious shortcomings in dealing with the complex management capabilities of growth, which also forms the management constraints of small and medium-sized hardware enterprises in foreign trade and international operations.

On the one hand, most small and medium-sized hardware companies are family-owned private management models, lacking scientific and standardized management systems, market operation mechanisms are inefficient, production is not responsive to changes in the international market, and environmental risk tolerance is poor. For example, the management of small and medium-sized private enterprises in Zhejiang Province is currently completing the new and old exchanges. The new generation of private entrepreneurs is also starting the second generation of entrepreneurship with abundant energy and agile thinking, but overall there seems to be the quality of small and medium-sized enterprises. The improvement can not keep up with the growth of the scale of the enterprise, and the improvement of the entrepreneurial team and the management quality of the group cannot keep up with the expansion of the number of entrepreneurs.

On the other hand, the traditional management methods that make the entrepreneurs spend too much energy to deal with the daily affairs of foreign trade operations, and lack the macro-strategic ideas that should be possessed in the international market operations, so the business activities of the enterprises Lack of a clear sense of direction. At the same time, the international business environment, which is different from the domestic market, makes it difficult for many small and medium-sized enterprises to find market opportunities with intuition. The lack of strategic planning for SMEs' international market operations and the decline in entrepreneurial judgments have led to a decline in their international competitiveness.

2. Insufficient confidence in entering the international market.

Many small and medium-sized hardware companies believe that foreign trade is only a matter of concern for large enterprises. They simply cannot talk about participating in the international market competition. Therefore, they only pay attention to the domestic market, and foreign trade is not included in the development strategy of enterprises. Due to lack of understanding of the international market and environment, some small and medium-sized hardware companies have a fear of participating in international market operations, causing psychological barriers. They have abandoned plans for external development simply because of temporary reasons such as “lack of information” and “lack of relationship”.

3. It is difficult to grasp the changes in the international market environment.

It is difficult to grasp the changes in the international market environment, resulting in a series of risks and hidden dangers after small and medium-sized hardware companies go out. Small and medium-sized hardware companies often lack the expertise and experience in international trade regulations and international trade practices. After a trade dispute, they will not reasonably protect their rights. The correct choice of dispute resolution channels often causes serious economic losses. In addition, the drastic changes in the international market environment and the rise in the exchange rate of the RMB against the US dollar have a greater impact on the economic benefits of SMEs' foreign trade operations. At present, some textile enterprises in the Pearl River Delta, especially those that are manufactured by OEMs, have had to make early holidays on the premise of the Spring Festival due to the reduction of quotas and insufficient orders. Many small enterprises have stopped working. As for some large-scale enterprises, they still stand up, but Also greatly affected, had to turn to domestic sales.

Fifth, the information is not smooth enough
The information channel of import and export trade is not smooth, and it is also an important external factor that affects the small and medium-sized hardware enterprises to go out. The lack of information channels, lack of industrial organization, and low level of informatization have caused many foreign trade small and medium-sized enterprises to lose opportunities to develop enterprises through foreign trade. They cannot establish a stable market that can be expected, and bring great risks to foreign trade operations. The benefits of going out can not be guaranteed.

1. Information channels are not smooth.

On the one hand, it is difficult for small and medium-sized hardware companies to obtain comprehensive and accurate relevant market information and foreign trade policy information in a timely manner. Because they don't understand the international market information, companies can't launch marketable products. With products, it is difficult to find a basis for determining prices. Therefore, the lack of a public information service platform that provides foreign trade information to small and medium-sized hardware companies and an interactive information exchange platform between organizations has become a major information barrier for small and medium-sized hardware companies to go global.

On the other hand, quite a few small and medium-sized hardware companies basically rely on traditional means to carry out import and export business. They have not yet adopted modern information technology to carry out trade exchanges. The development of import and export business has great randomness and contingency. It is difficult to actively seek and establish a stable import and export trade channel.

2. Lack of industrial organization.

At present, China's small and medium-sized hardware enterprises are importing and exporting trade from the beginning to the overall rapid development. However, due to the lack of effective industrial organization, especially the lack of public service providers, this transformation faces a huge organizational structure. challenge. Most small and medium-sized import and export enterprises are basically self-contained, they are independent, there is no synergy, there is no mutual connection and cooperation between enterprises, and the industrial organization is poor, let alone the economies of scale and professional cooperation among enterprises within the industry. More importantly, the lack of industrial organization in small and medium-sized hardware companies, the formation of low-quality, low-cost extensive growth model, will inevitably lead to competition disorder and excessive competition, everyone fight for a limited market and play a "price war", the result with The decline in corporate efficiency, the decline in product quality, and the loss of credit value have finally resulted in a losing situation.

In the developed coastal areas, especially the small and medium-sized hardware enterprise clusters formed spontaneously in the economic development of the Pearl River Delta and the Yangtze River Delta, while promoting the scale of the regional export-oriented economy, the industrial organization disadvantages of the import and export trade of small and medium-sized hardware enterprises have been alleviated to some extent. However, it has not fundamentally solved the problem of industrial organization in the field of foreign trade. In the industrial cluster, the enterprise products are seriously reconstructed, the technological progress is slow, and the leading brands are difficult to establish new contradictions, which means that further industrial organization changes and upgrades are needed.

3. The level of informatization is low.

We know that enterprise informatization is the foundation of enterprise application of e-commerce. The level of enterprise informatization has a great impact on the success or failure of enterprise e-commerce application. For example, the level of informatization of small and medium-sized hardware enterprises in Ningbo is low, and the result is: Ningbo SMEs want to successfully apply e-commerce to transform the traditional business management mode of enterprises, first of all, to improve the informationization level of SMEs. In small and medium-sized enterprises with low informationization or basically no information, it is unimaginable to make the transformation of Ningbo SMEs through the application of e-commerce. Therefore, the low level of informatization is a hindrance to the application of e-commerce in Ningbo SMEs.

It can be seen that the information channels are not smooth, it is difficult to obtain authoritative and effective information, and the information means are backward. Many small and medium-sized foreign trade enterprises have lost many opportunities to develop enterprises through foreign trade, and cannot establish a stable market that can be expected, or give foreign trade operations. Bringing great risks, there is often a big gap between the cost of foreign trade business and the return on profits, and the benefits cannot be guaranteed. Insufficient information and insufficient policy propaganda have caused some companies to either be slow to respond, to be at a loss, to go far and far, to operate twists and turns, to delay time and increase costs, and to lose many of the conveniences of obtaining preferential policies.

It can be seen from the above analysis that small and medium-sized hardware enterprises are still facing many risks in the process of internationalization. Small and medium-sized hardware enterprises still face many challenges and problems in successfully carrying out international operations. "Going out" is the inevitable requirement and general trend of China's economic development. Economic globalization requires us to plan China's economic development from the overall situation of the world, to benefit and avoid harm, and to make full use of "two markets" and "two kinds of resources." From "bringing in" to "going out" is an inevitable measure for the development of Chinese enterprises to a certain extent, and an inevitable law for the development of China's economy to a certain extent. In the process of internationalization of SMEs, it is necessary to proceed from the actual situation, analyze and solve problems, in order to take the road of internationalization. I believe that "going out" will play a greater role in China's economic reform, social development, and foreign exchanges.

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