There are about 1 million SMEs in Guangdong province, many of which are owned by Hong Kong or Macao investors.
Due to the global financial crisis, the province saw a decline of capital inflows from Hong Kong from January to October this year.
Yet investment in the tertiary industry rose in the past 10 months. Read more…
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Based on the data of China Association of Small and Medium Enterprises, SMEs contribute 60% of China’s GDP but only get less than 25% of total bank loans and receive fewer resources from the government. As the CEO of BPOVIA, one of SMEs in Nanjing, James Huang said, “To make larger contribution to China’s GDP, we need more support to enlarge our business”, the stronger the SMEs are, the better will be for China’s future.
Business experts also said that SMEs deserve more support from the central government.
Long Yongtu, secretary-general of the Boao Forum and former vice-foreign trade minister, once said at a forum to discuss the development of a central business district in Shenzhen that the world’s Read more…
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The China Association of Small and Medium Enterprises (CASME) said on it website on Nov 24, it has launched venture investment fund of 3 billion yuan ($440 million) to help SMEs raise capital. The fund will be established by the end of this year.
Beside this, according to CASME, other efforts include the joint issue of an SME corporate bond with the Liaoning provincial government and the founding of a bank with a planned registered Read more…
Popularity: 4% [?]
According to the head of a global recruitment agency, as a result of the worldwide financial crisis, staff layoffs at a number of multinational companies (MNCs) in the country should present an opportunity for small and medium-sized domestic enterprises (SMEs) to grab whatever talent they can.
CEO of Antal International Tony Goodwin noted that the SMEs should do so before the MNCs realize the potential of Chinese economy Read more…
Popularity: 3% [?]
In Germany, many small and mid-sized enterprises (SMEs) are often viewed as the backbone of the German economy. With fewer than 1,000 employees at the headquarters and a maximum annual turnover of 100 million euros ($ 134.8 million) worldwide each, SMEs may not yet be popular names, but their contribution to the global economy can not be ignored. Their expanding presence in China indicates their growing importance.
To estimate the development Read more…
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The government has introduced a series of measures to help small and medium-sized enterprises (SMEs).
Compared with State-owned enterprises, SMEs are much more vulnerable. Latest statistics from the National Development and Reform Commission show that in the first six months of 2008, about 10 percent of SMEs reported an average 15 percentage point drop in their industrial output growth from a year earlier to 30 percent. This indicates a significant shrinkage in their profit margins. SMEs have also been hit by the credit Read more…
Popularity: 3% [?]
Some Microcredit companies are going to be launched in Zhejiang province in July to cater to small and medium-sized enterprises’ demand for capital. It is said to standardized and regulate private capital, each country in the province will have one to two microcredit companies.
Microcredit has a 14 year history in China. In October 1993, the government introduced MF, modeled from the Grameen Bank, as part of the poverty alleviation initiatives. Since then three main players have immerged – CFPA, CASS (Chinese Academy of Social Sciences) and CICETE (China International Center for Economic and Technical Exchanges), along with their international backers. All of these players have focused on using Grameen styled MF as a poverty alleviation tool for rural China, to varying degrees of success.
Today there are over 300 small microfinance pilot projects, few of which are financially sustainable. CFPA is the only one which has brought all its project sites together in a branch model. Till now microcredit association has not been able to become a legal entity due to the lack of relevant registration framework, as their members are unable to become legal financial institution. Due to this lack of registration, microcredit association’s activities are limited to some training courses, and promoting NGO microfinance regulations negotiations with the relevant government bodies. China is considered one of the last frontiers for microfinance. The market is huge, the existing providers are not providing good service and most are not sustainable.
Concerning the to be built microcredit companies in Zhejiang, microcredit lenders will be chosen from quality private enterprises whose net assets should be no less than 50 million yuan, asset-liability ratio less than 70 percent and those that have been making profits for three years in a row, with revenue higher than 15 million yuan.
The project is launched at this time when small enterprises facing financing difficulties caused by factors like soaring raw material process, and tightening monetary policy. Statistics show that because of the credit crunch, most small and medium-sized enterprises have to resort to the private lending market.
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