Deep Thinking On The Continuous Bankruptcy Of Manufacturing Enterprises

With the development of "Suyi" and spin The sudden collapse of Dingjia, an enterprise in Dongguan, has filled the entire manufacturing industry with the fear that a "manufacturing cold current" will strike again. According to local news media data, in the past half month, the news about enterprise closure or workers' wage demands has more than doubled sharply.

Private enterprises have become half of China's economy. Every time the tide of bankruptcy strikes, people are worried and offer advice.

At present, there are mainly two aspects of folk suggestions: first Tax burden If it is overweight, tax should be reduced; Second, small and medium-sized enterprises financing Difficult, bank lending should help.

It is an indisputable fact that the tax burden of SMEs is too heavy.

The tax base of Chinese enterprises was mainly formulated in the 1980s, which made the nominal tax burden not increase, but since 1980 alone, the CPI has increased by 332%, which makes the actual tax burden of enterprises increase by 332% when the tax base and nominal tax burden remain unchanged.

As for the difficulty of SME financing, it is not a new topic.

On the issue of difficult financing, SMEs themselves are also worth thinking about.

For a long time, the development mode of small and medium-sized enterprises in China is to follow the state-owned enterprises step by step and adopt the path of rapid scale development with high liabilities, with very little self owned capital and cash reserves.

The technological progress has led to the decline of the gross profit rate of enterprises, coupled with the tightening of the national credit policy and the soaring price of private funds, SMEs have little choice but to close down.

On the other hand, foreign private enterprises, such as Intel, Google, Microsoft and Apple, have not taken the development path of high debt even though their corporate reputation and market are so good. Intel has $14 billion in working capital, Google has $35 billion in cash, Microsoft has $35 billion in cash, and Apple has about $40 billion in cash.

With food in hand, we should not panic. The development ideas of foreign enterprises are worthy of learning from small and medium-sized enterprises in China.

There is another interesting phenomenon behind the bankruptcy of Chinese manufacturing enterprises, that is, the trust of domestic products is declining.

Although there is no specific data to support it, the trademark names of domestic products are increasingly "full of foreign flavor", which is a silhouette.

On the other hand, more than 70% of Chinese people now prefer foreign brands for milk powder, and Japan for digital products. The most prominent toothpaste supermarkets are "Colgate", "Jienuo", and "Crest". Domestic toys have become synonymous with "toxic toys"... Even domestic products often have to turn around to be high-end with the word "foreign".

In contrast, our neighbor Vietnam, since the "Vietnamese give priority to Vietnamese goods" campaign was launched in 2010, the number of consumers who trust Chinese goods has risen from 23% to nearly 59%. In particular, domestic textile clothing and shoes are most trusted by consumers, with 80% trust.

Why is the trust of Chinese products among Chinese people on the decline when China becomes the "factory of the world"?

The quality problem has become a lingering "curse", thus weakening the trust of domestic products as a whole; On the other hand, the business ethics of some small and medium-sized business owners collapsed. Scandals again and again made Chinese people "prefer to believe what they have rather than what they have", which led to the collapse of the market as a whole.

Therefore, it is very important for manufacturing enterprises to reappear the tide of bankruptcy and the lack of development mode and social responsibility.

Every crisis is organic. This time, manufacturing enterprises are again going bankrupt. Can we really reflect and seize the opportunity?