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Why is it so difficult for current private small and micro enterprises to survive?

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Objectively speaking, the survival of current private small and micro enterprises is indeed very difficult, with a large number of bankruptcy and bankruptcy, and some are struggling to survive. Why is it so difficult for private small and micro enterprises to survive today? Everyone can analyze and discuss it. I would like to elaborate on my own views here for communication and discussion purposes only.


Why is it so difficult for current private small and micro enterprises to survive?990 / author:2233 / PostsID:1606249

Firstly, it should be the scarcity of social resources, which leads to vicious competition among each other.


It is no exaggeration to say that private small and micro enterprises nowadays are like "wild children", basically in a state where there is no one to care for, manage, or support them. The resources in fields with relatively abundant profits have been occupied by state-owned and central enterprises, while in areas with thin profits, high investment, and high risks, due to the lack of social resources, private enterprises have intensified competition among themselves, as everyone does not want to die and wants to live.


In some product areas where there is no profit margin, there is already overcapacity in the market, and vicious competition among enterprises is inevitable. In the competition between the same products, enterprises often focus on price, so the prices are getting lower and lower, and even unprofitable, resulting in losses. This is one of the important factors that make it difficult for private small and micro enterprises to survive, and it cannot be changed in the short term.


Why is it so difficult for current private small and micro enterprises to survive?287 / author:2233 / PostsID:1606249

Secondly, the financing environment is harsh, making it difficult for enterprises to raise funds and resulting in high operating costs.


This is also a reality that private small and micro enterprises must face. Due to the high operational risks of private small and micro enterprises, the lack of collateral, and the lack of implicit guarantees like state-owned enterprises, financing has always been difficult and expensive, and it has become a persistent disease that cannot be changed. The financial sector is based on its own efficiency as a prerequisite, and for private small and micro enterprises, it is impossible to provide timely assistance.


Furthermore, in the current private small and micro enterprises, various costs are rising, including rising raw material costs, labor costs, and rental prices, making them overwhelmed and under great pressure. It is indeed very difficult to survive, let alone innovate and develop. Ensuring one's life is not easy.


Why is it so difficult for current private small and micro enterprises to survive?322 / author:2233 / PostsID:1606249

Another issue is the severe economic environment and the lack of confidence among business owners themselves.


I will not discuss the current international and domestic economic environment here, as the difficulties caused to domestic private small and micro enterprises are also fatal. In addition, in recent years, domestic policies such as deleveraging, reducing production capacity, strengthening environmental protection, and regulating tax payment have further impacted the private economy, and sometimes even dealt a fatal blow to some small and micro enterprises.


Regarding the confidence of private small and micro business owners, if it was a lack of confidence in previous years, it should be said that it has been completely destroyed in recent years. In the previous period, under the guidance of public opinion, it was like a nationwide struggle against landlords, such as blacklists, scoundrels, and dishonest individuals. Various disciplinary measures have caused many entrepreneurs to not only fail to persist in short-term difficulties, but also completely lose hope of a comeback.


Why is it so difficult for current private small and micro enterprises to survive?364 / author:2233 / PostsID:1606249

In summary, the above aspects should be said to be the main reasons for the current difficulties in the survival of private small and micro enterprises. There are also some other factors that can be overcome, mostly minor details. The above is my viewpoint. Welcome to discuss it together. Today, I will share and exchange some ideas with you. Thank you for reading.



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