As the major birthplace of China's security industry, the Pearl River Delta region began to grow and expand from the 1990s by relying on the “three to one†trade method for security product processing and manufacturing. At present, it has become the largest industrial cluster for the production and trade of security products in China. The development of security industry clusters in the “Pearl River Delta†region is characterized by advanced manufacturing of security products, a complete system, and an outward-oriented economy. The type of industry is still a labor-intensive industry, and is dominated by small and medium-sized enterprises. SMEs have played a very active and important role in the Pearl River Delta region in expanding employment, promoting technological progress, and developing international trade. However, the recent security and small and medium enterprises in the Pearl River Delta region are experiencing the worst cold wave since the 2008 financial crisis.
Recently, Dongguan, an important city in the Pearl River Delta region of the security manufacturing base, followed the wave of closures by small and medium-sized enterprises in Wenzhou. The wave of closures of small and medium-sized enterprises broke out. Although there were positive responses from the two cities, there was no such thing as a SMEs have "closed the tide", but it also shows the difficulties of SME financing.
In recent days, domestic prices have continued to rise, and manpower costs have continued to rise. Coupled with the government’s efforts to stabilize the economy and continuously tightening monetary policy, corporate lending rates have continued to rise, private capital interest rates have continued to rise, and the RMB exchange rate has continued to strengthen. The national financial crisis continues to heat up, and the export trade of enterprises has become increasingly difficult. All this has made it difficult for security companies, which are mainly manufacturing companies, to struggle, especially for the majority of SMEs.
At present, although the security industry is in a stage of “rapid development,†SMEs do need to purchase new production equipment and expand production capacity to increase their market share. In fact, on the contrary, security small and medium-sized enterprises in the Pearl River Delta region faced a dilemma: Firstly, domestic raw material prices have continued to rise, and labor costs have continued to rise. As a result, companies’ production costs have continued to rise. In order to maintain existing customers, companies can only continue to Compress product profits. Because SMEs do not have scale advantages, they can't compare large companies to take advantage of scale to offset rising costs. In addition, the RMB exchange rate and foreign financial crisis have affected the export of foreign trade. As a result, companies are unable to expand their production through the accumulation of their own companies and can only maintain the status quo at most.
Security companies seeking sustainable development can only hope to use bank or Other financing to relieve corporate pressure. However, the country has recently increased its reserve ratio and tightened its monetary policy. Bank loan interest rates have been raised continuously, and private capital interest rates have also risen. In addition, due to the SMEs' own reasons, the loans provided by banks to SMEs are mainly used for the renewal of liquidity and fixed assets. SMEs are rarely provided with long-term credit. SMEs have been unable to obtain financial support from banks. SMEs have difficulties in financing, lack of funds, and poor corporate turnover. As a result, the efficiency of SMEs has been low, development has slowed down, and the space for survival has become narrower.
The security industry is a rapidly growing sunrise industry and its development is widely viewed by the industry. Some experts suggested that the security industry is in the “high stage of growth†in the next 5-10 years, and it is also an adjustment and clearing phase. With a large number of backward technologies and irrational corporate structures, simple manufacturing and processing companies that lack research and development capabilities will be eliminated and market supervision will be more standardized. In view of this situation, any security SMEs do not want to miss this development opportunity, and do not want to be eliminated by the market.
Then how should the country break the bottleneck of financing difficulties for SMEs and how should SMEs in the security industry save themselves?
In fact, as early as the end of last year, the State Intellectual Property Office, together with six ministries and commissions such as the Ministry of Finance, issued the “Notice on Strengthening the Management of Intellectual Property Pledge Financing and Evaluation, and Supporting the Development of Small and Medium-sized Enterprises,†followed by the “Patent Pledge Registration Measuresâ€. Through the simplification and standardization of pledge registration procedures, the use of patent rights and financial communications will be further promoted to ensure the realization of creditor rights.
In July of this year, the Ministry of Industry and Information Technology formally released the "Regulations for the Standardization of SMEs". With regard to the introduction of new regulations, the industry generally believes that clarifying the scope of SMEs is a signal that the country will issue relevant support policies. In the interpretation of the “Regulations on the Standardization of Small and Medium-sized Enterprises†by the heads of the four ministries and commissions of the country, the new regulations also help to increase support for small and micro enterprises. The new standards set out micro-enterprise standards, which are conducive to clarifying priorities and introducing more targeted preferential policies to increase the pertinence and timeliness of policies. At the same time, various ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the State Administration of Taxation and the Ministry of Industry and Information Technology are stepping up the drafting of relevant policies to support the development of SMEs. In an interview with reporters recently, Feng Zhongsheng, deputy director of the Finance Division of the National Development and Reform Commission, also stated that the country will consider a comprehensive and integrated program to solve the financing difficulties of SMEs.
With the continuous introduction of the national support policy for SMEs, the development of SMEs is once again facing new opportunities. SMEs in the security industry must seize this opportunity to strive for internal strength and achieve self-salvation.
Security SMEs should strive to improve their own operating conditions, improve the management level of enterprises, streamline institutions, and further reduce the cost of enterprise management. Improve the financial system and clarify the financial status of the company. It enables investors to understand the business operation and financial status of the company, and thus lay a good foundation for raising funds and expanding production scale.
In the long run, technological innovation of enterprises is the foundation for the survival of enterprises, the driving force for development, and the guarantee of success. Today, the ability to innovate has become the country’s core competitiveness and is also the key to the survival and development of the company. It is the first step for the company to achieve leapfrog development. Security and SMEs should strive to do a good job in technological innovation, improve the competitiveness of products and reduce production costs. In the past, security products merely copied and imitated to carry out simple processing. Such enterprises could not grow and survive for a long time. Safeguarding small and medium-sized enterprises from the labor-intensive to the technology-intensive, it is necessary to establish their own core advantages and own their own core technologies. This kind of enterprise can get better support from the country and the bank.
Recently, Dongguan, an important city in the Pearl River Delta region of the security manufacturing base, followed the wave of closures by small and medium-sized enterprises in Wenzhou. The wave of closures of small and medium-sized enterprises broke out. Although there were positive responses from the two cities, there was no such thing as a SMEs have "closed the tide", but it also shows the difficulties of SME financing.
In recent days, domestic prices have continued to rise, and manpower costs have continued to rise. Coupled with the government’s efforts to stabilize the economy and continuously tightening monetary policy, corporate lending rates have continued to rise, private capital interest rates have continued to rise, and the RMB exchange rate has continued to strengthen. The national financial crisis continues to heat up, and the export trade of enterprises has become increasingly difficult. All this has made it difficult for security companies, which are mainly manufacturing companies, to struggle, especially for the majority of SMEs.
At present, although the security industry is in a stage of “rapid development,†SMEs do need to purchase new production equipment and expand production capacity to increase their market share. In fact, on the contrary, security small and medium-sized enterprises in the Pearl River Delta region faced a dilemma: Firstly, domestic raw material prices have continued to rise, and labor costs have continued to rise. As a result, companies’ production costs have continued to rise. In order to maintain existing customers, companies can only continue to Compress product profits. Because SMEs do not have scale advantages, they can't compare large companies to take advantage of scale to offset rising costs. In addition, the RMB exchange rate and foreign financial crisis have affected the export of foreign trade. As a result, companies are unable to expand their production through the accumulation of their own companies and can only maintain the status quo at most.
Security companies seeking sustainable development can only hope to use bank or Other financing to relieve corporate pressure. However, the country has recently increased its reserve ratio and tightened its monetary policy. Bank loan interest rates have been raised continuously, and private capital interest rates have also risen. In addition, due to the SMEs' own reasons, the loans provided by banks to SMEs are mainly used for the renewal of liquidity and fixed assets. SMEs are rarely provided with long-term credit. SMEs have been unable to obtain financial support from banks. SMEs have difficulties in financing, lack of funds, and poor corporate turnover. As a result, the efficiency of SMEs has been low, development has slowed down, and the space for survival has become narrower.
The security industry is a rapidly growing sunrise industry and its development is widely viewed by the industry. Some experts suggested that the security industry is in the “high stage of growth†in the next 5-10 years, and it is also an adjustment and clearing phase. With a large number of backward technologies and irrational corporate structures, simple manufacturing and processing companies that lack research and development capabilities will be eliminated and market supervision will be more standardized. In view of this situation, any security SMEs do not want to miss this development opportunity, and do not want to be eliminated by the market.
Then how should the country break the bottleneck of financing difficulties for SMEs and how should SMEs in the security industry save themselves?
In fact, as early as the end of last year, the State Intellectual Property Office, together with six ministries and commissions such as the Ministry of Finance, issued the “Notice on Strengthening the Management of Intellectual Property Pledge Financing and Evaluation, and Supporting the Development of Small and Medium-sized Enterprises,†followed by the “Patent Pledge Registration Measuresâ€. Through the simplification and standardization of pledge registration procedures, the use of patent rights and financial communications will be further promoted to ensure the realization of creditor rights.
In July of this year, the Ministry of Industry and Information Technology formally released the "Regulations for the Standardization of SMEs". With regard to the introduction of new regulations, the industry generally believes that clarifying the scope of SMEs is a signal that the country will issue relevant support policies. In the interpretation of the “Regulations on the Standardization of Small and Medium-sized Enterprises†by the heads of the four ministries and commissions of the country, the new regulations also help to increase support for small and micro enterprises. The new standards set out micro-enterprise standards, which are conducive to clarifying priorities and introducing more targeted preferential policies to increase the pertinence and timeliness of policies. At the same time, various ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the State Administration of Taxation and the Ministry of Industry and Information Technology are stepping up the drafting of relevant policies to support the development of SMEs. In an interview with reporters recently, Feng Zhongsheng, deputy director of the Finance Division of the National Development and Reform Commission, also stated that the country will consider a comprehensive and integrated program to solve the financing difficulties of SMEs.
With the continuous introduction of the national support policy for SMEs, the development of SMEs is once again facing new opportunities. SMEs in the security industry must seize this opportunity to strive for internal strength and achieve self-salvation.
Security SMEs should strive to improve their own operating conditions, improve the management level of enterprises, streamline institutions, and further reduce the cost of enterprise management. Improve the financial system and clarify the financial status of the company. It enables investors to understand the business operation and financial status of the company, and thus lay a good foundation for raising funds and expanding production scale.
In the long run, technological innovation of enterprises is the foundation for the survival of enterprises, the driving force for development, and the guarantee of success. Today, the ability to innovate has become the country’s core competitiveness and is also the key to the survival and development of the company. It is the first step for the company to achieve leapfrog development. Security and SMEs should strive to do a good job in technological innovation, improve the competitiveness of products and reduce production costs. In the past, security products merely copied and imitated to carry out simple processing. Such enterprises could not grow and survive for a long time. Safeguarding small and medium-sized enterprises from the labor-intensive to the technology-intensive, it is necessary to establish their own core advantages and own their own core technologies. This kind of enterprise can get better support from the country and the bank.
Jiangrui Wire Mesh Products Co., Ltd. , http://www.hstemporaryfence.com