Lenders asked to back loans to SMEs
By Ding Yining |
July 28, 2011, Thursday
|
Print Edition
Print Edition
BANKS should relax their lending criteria and procedures to support China's small- and medium-sized enterprises which are facing difficulties in obtaining credit, a study showed.
The recent study of about 2,400 SMEs in Zhejiang Province revealed an increasing number of companies are facing rising labor and raw material costs, according to a report released yesterday by the National School of Development of Peking University and Alibaba Group.
More than 81 percent of small business owners interviewed said they felt the pressure of rising labor costs, with the same percentage also facing higher raw material expenses. A study done a year earlier found comparative figures of 52 percent and 55 percent respectively.
Research found that 63 percent of SMEs interviewed need financial support, but about 50 percent of them turned to private lending or family and friends while only 15 percent received bank loans.
Despite difficulties many small business owners are striving to maintain and develop their businesses, said Hu Xiaoming, vice president of Alibaba Group.
With more costly raw materials Xue Zhaofeng, a researcher at National School of Development of Peking University, suggested the yuan could be allowed to rise more and help combat inflation, cutting costs for SMEs.
The recent study of about 2,400 SMEs in Zhejiang Province revealed an increasing number of companies are facing rising labor and raw material costs, according to a report released yesterday by the National School of Development of Peking University and Alibaba Group.
More than 81 percent of small business owners interviewed said they felt the pressure of rising labor costs, with the same percentage also facing higher raw material expenses. A study done a year earlier found comparative figures of 52 percent and 55 percent respectively.
Research found that 63 percent of SMEs interviewed need financial support, but about 50 percent of them turned to private lending or family and friends while only 15 percent received bank loans.
Despite difficulties many small business owners are striving to maintain and develop their businesses, said Hu Xiaoming, vice president of Alibaba Group.
With more costly raw materials Xue Zhaofeng, a researcher at National School of Development of Peking University, suggested the yuan could be allowed to rise more and help combat inflation, cutting costs for SMEs.
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