Why is the real economy and small businesses more

2022-09-23
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Why is the real economy and small businesses more and more difficult to do

release date: - and there is no need to use harmful solvents 24 source: Ping said finance and economics Zhang Ping

recently, a friend asked why the real economy and small businesses are becoming more and more difficult. Many people who quit and start businesses around have had to stop losing and exit because their businesses have been in a state of loss for a long time after several efforts. In this regard, experts believe that it is indeed a fact that it is increasingly difficult to open physical stores. But if you don't have enough to eat in a small business, it must be your ability. Some people set up stalls to sell breakfast or boxed meals, and their monthly income is not uncommon

we believe that the real economy and small businesses are indeed much more difficult than in the past, which is mainly caused by the following reasons: first, the domestic economic environment is not good. Take export enterprises for example. Affected by international trade frictions, foreign trade orders decreased, resulting in insufficient construction, and enterprises had to cut staff and salaries. The recession of real enterprises has a far-reaching adverse impact on employment, consumption and investment. At the same time, due to the depreciation of the RMB exchange rate, the price of domestic imported raw materials rose, which also squeezed the profit space of manufacturing enterprises

second, the real economy and small businesses have high business costs. Small businesses need to go through various procedures when they open the door. Entity enterprises have to pay taxes according to regulations, and also pay five insurances and one fund to on-the-job employees. This may not be too much pressure when the economic situation is good and business is booming, but when the economy is depressed, relatively high taxes and the payment of five insurances and one fund for employees are heavy pressure on enterprises. Although this hidden cost varies from place to place, it makes physical enterprises feel that the cost of doing business is too high

third, high house prices and high rents are even worse for physical stores. Even if you want to open a fruit store in Shanghai, renting a storeroom costs tens of thousands of rent at least every month, and doing a physical store itself is a meager profit. If the passenger flow is small, you can only close down. In addition, Ren Zhengfei of Huawei also complained about the high housing prices in Shenzhen in the past two years, which led to the rise of land prices and employee income. In order to save costs, Huawei had to move its production base and R & D center to Songshan Lake in Dongguan. Even technology enterprises such as Huawei feel that the housing price in Shenzhen is too high, not to mention ordinary entity enterprises and small businessmen

in addition, the high housing prices and rents have led to a sharp decline in the monthly disposable income of urban residents, and most families can only maintain their basic daily expenses, because the funds flow to banks, developers and tenants. When residents' monthly disposable income drops sharply, their consumption capacity is very fragile, and domestic demand cannot be expanded, which will have a significant impact on the real economy and small businesses. In the past, people's repayment of loans and the pollution of plastic granulators to the environment were also quite serious. The pressure of renting houses was light, and more income could be used for consumption. Now the pressure is heavier, so we don't consume. If the consumer market fails, small businesses and the real economy will naturally be difficult to do

fourth, the impact of e-commerce. In the past, the probability of surviving in the real economy or small business was still higher. Now e-commerce is coming, which has brought a huge impact on the real economy and small businesses: on the one hand, in the era of no e-commerce, commodity prices were opaque, and people who do small businesses and real businesses may still be profitable. Now all commodity prices are transparent, and the profits are thin. On the other hand, even if physical enterprises and small businessmen promote their products on the Internet, set up stores with impact resistance and other sales, the promotion cost of e-commerce platforms such as Taobao, jd.com and pinduoduo is very high, and they will lose money if they don't do well

fifth, homogenization competition is fierce, and has reached a white hot level. Chinese people usually have a custom that when they see an industry that makes money, they all go to this industry. A few years ago, Wenzhou people went to open supermarkets. Later, everyone went to do fruit stores, clothing stores, small restaurants, etc. as a result, there were more than a dozen small restaurants on a street, and there were several fruit stores, supermarkets, and clothing stores. In the homogeneous competition, there is no feature, and the result can only be the survival of the fittest. Therefore, people generally feel that the so-called "double space" of doing industry and Xiaosheng, that is, there are two experimental spaces, is getting harder and harder to do

the real economy and small businesses are not easy to do, which is not only related to the current economic environment and the high hidden business costs borne by enterprises, but also related to the rise of rent and the impact of the rise of e-commerce platforms, as well as the more serious homogenization competition. Therefore, if the real economy and small businesses want to survive and become stronger, they must have their own characteristics and go out of their own way. If entrepreneurship is just to compete homogeneously with others, the probability of winning is certainly not very high

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