Treating both symptoms and root causes, caring for small and micro enterprise brands | China | Enterprises

Since the beginning of this year, with the stable transition of epidemic prevention and control, China's market demand has gradually recovered, production supply has continued to increase, economic growth has recovered, and small and micro enterprises have also shown a stable operating trend overall. In the three months of the second quarter, the Economic Daily China Postal Savings Bank Small and Micro Enterprise Operation Index was 49.5, 49.5, and 49.6, respectively, located near the prosperity line and steadily rising slightly; The market indices are 50.8, 50.5, and 50.4, respectively, and the confidence indices are 53.0, 52.7, and 52.2, all of which are on the boom line, indicating that the market is gradually recovering and the confidence of small and micro enterprises is gradually recovering.

Small and micro enterprises are the largest and most dynamic group of enterprises in China. They are an important pillar of the national economy, the main channel for absorbing employment, and also a driving force for economic and social development. As of the end of 2022, the number of small and medium-sized enterprises in China has exceeded 52 million, accounting for 90% of all enterprises and 80% of all employees. For a period of time, a series of policies have been introduced to assist small and micro enterprises in overcoming difficulties, achieving positive results.

The current economic recovery foundation is not yet solid, and multiple indicators such as procurement index, performance index, expansion index, financing index, and cost index of small and micro enterprises are all below the prosperity line. Some indicators have not significantly improved, and small and micro enterprises still face many difficulties and pressures. On the one hand, there is insufficient demand, and the growth momentum of consumption, exports, and investment is not strong. In June, the year-on-year growth rate of total retail sales of consumer goods in society showed a significant decline compared to the previous three months, and the export growth rate once again showed negative growth. Private investment decreased year-on-year, and the market space for small and micro enterprises was limited. On the other hand, cost rigidity has increased the pressure on the prices of raw materials, rent, and labor since the beginning of this year compared to the epidemic period, and the comprehensive financing costs of small and micro enterprises are still relatively high. The cost index of small and micro enterprises in June increased by 1.2 points compared to April, indicating that the production cost pressure of small and micro enterprises has not been effectively alleviated. At the same time, confidence still needs to be improved. The current world political and economic situation is complex, and economic recovery requires a process of wave like development and tortuous progress. The development of small and micro enterprises faces many uncertainties. The confidence index of small and micro enterprises in June decreased by 2.2 points compared to January, indicating that the current confidence of micro entities is not strong.

As the "capillaries" of the Chinese economy, small and micro enterprises are closely related to the overall development of the economy and society. If small and micro enterprises are stable, the economy will be stable, employment will be stable, and expectations will be stable. The recent Central Political Bureau meeting emphasized the need to continue, optimize, improve, and implement tax and fee reduction policies, leverage the role of aggregate and structural monetary policy tools, and strongly support technological innovation, the development of the real economy, and small and micro enterprises. In this regard, we must adhere to a problem oriented approach, combining the long and short, addressing both symptoms and root causes, and balancing internal and external factors. We must not only effectively reduce the various cost burdens of small and micro enterprises, help them expand their markets, but also actively guide their transformation and upgrading, and enhance their market competitiveness.

Firstly, implement comprehensive policies to reduce costs. Actively implementing the decisions and deployments of the Party Central Committee, increasing the promotion and supervision of cost reduction policies, ensuring that small and micro enterprises truly enjoy the policy dividends, and ensuring that all cost reduction measures are implemented and effective. Improve tax and fee preferential policies such as value-added tax and income tax reduction, and continue to guide industry associations and chambers of commerce to actively reduce, reduce, and cancel fees for small and medium-sized enterprises. We will promote stable and moderate reductions in loan interest rates, make full use of inclusive small and micro loan support tools, increase the number of down loans, renewal loans, and credit loans for small and micro enterprises, and continue to implement policies to reduce financing guarantees, fees, rewards, and subsidies for small and micro enterprises. We will continue to implement policies such as phased reductions in social insurance premiums and stable job returns for inclusive unemployment insurance, and increase efforts to clear outstanding debts owed to small and medium-sized enterprises.

Secondly, take multiple measures to expand the market. Encourage various forms of consumption subsidies and organize various consumption activities such as expos, consumption seasons, and promotion months in various regions to stimulate market demand for small and micro enterprises through consumption recovery. The government sets up a platform and enterprises perform, encouraging large enterprises and platform institutions to release procurement lists for small and medium-sized enterprises, carrying out cross-border matchmaking activities, and exploring more markets and creating more business opportunities for small and medium-sized enterprises. Further leverage the leverage effect of government investment and procurement, gradually increase the reserved share of government procurement projects for small and medium-sized enterprises to over 40%, and continue the policy until the end of 2023, and timely study and form a system.

Thirdly, strive for excellence and refinement of internal skills. Increase support for the development of "specialized, refined, unique, and new" enterprises, guide small and micro enterprises to focus on their main business, practice internal skills, strengthen innovation, and grow into "singles champions" or "supporting experts" who master unique skills. Adhere to quality first, efficiency first, honesty and trustworthiness, implement the special action of empowering small and micro enterprises with quality standard brands, enhance the construction of quality standard brands for small and micro enterprises, and create a group of branded and reputable enterprises. Continue to promote pilot projects for digital transformation of small and medium-sized enterprises, and support small and micro enterprises with conditions to promote full lifecycle digital transformation such as research and development, design, production and manufacturing, business management, and market services.