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In recent times, the phenomenon of difficulties in the management of small and medium-sized enterprises has caused widespread concern. Especially in Dongguan, the “world factoryâ€, the recent senior toy company “Suyi†and the textile company “Dingjia†suddenly closed down, and the voice of the “closed tide†in Dongguan continued. Half of the losses or profit margins were submitted to the 27th meeting of the 11th Standing Committee of the Guangdong Provincial People's Congress held on the 27th, the report of the implementation of the National Economic and Social Development Plan for the first half of 2011, said that the current small and medium-sized It is more difficult for enterprises to produce and operate. According to the survey, 50% of the companies indicated that they are at a loss or the profit rate is within 2%, and only 22.2% of the companies said that the profit rate is above 5%. The report pointed out that at present, SMEs in Guangdong face a difficult situation with different forms of expression during the 2008 financial crisis. According to the survey, some enterprises report that during the financial crisis, merchants cleared inventory and orders dropped sharply. However, if the company has orders to pick up, the production still has profits. However, there are orders that are not dare to pick up at present. Even if orders are received, it is difficult to make profits. . Specifically, enterprises are mainly faced with the following difficulties: First, the comprehensive cost of production has risen sharply, and business operations are difficult. In the first half of the year, the industrial producers' price index (PPI) of the province increased by 3.8% year-on-year, while the industrial producer purchase price index (IPI) rose by 7.6% year-on-year, and the scissors difference was as high as 3.8 percentage points. Secondly, tight monetary policy reduces market liquidity, and corporate financing is difficult. Affected by the bank's tightening of monetary policy, the company's raw material purchases increased the funds, the customer deposits were reduced, and the cash use in various links increased significantly, which made the liquidity more tense. Again, product bargaining power is weak, and corporate profits are difficult. The survey shows that despite the rising costs of various enterprises and the continuous appreciation of the renminbi, export orders cannot raise prices or even lower prices, which makes corporate profits very difficult. Professor Lin Jiang, director of the Department of Finance and Taxation of Lingnan College of Sun Yat-sen University, who is not as familiar with the outside world , believes that the operation of small and medium-sized enterprises in Dongguan is not very optimistic, but it has not been as serious as the outside world described. The difficulty of business operation has both the problem of changing the market environment and the problems of the company's own operation. “Even if there are orders, some enterprises can still not operate.†Guangdong Provincial Vice Governor Zhao Xing also pointed out that after the investigation, SMEs did not appear to be “closed tides†in the society. At present, the main difficulties faced by SMEs are not survival problems, but how to accelerate the transformation and upgrading, and become bigger and stronger. Qiu Jun, director of the General Affairs Department of the Guangdong Provincial Bureau of Statistics, pointed out that the “First Financial Daily†analysis pointed out that if enterprises actively transform and upgrade, they may still have the current difficulties. If it is a labor-intensive export processing enterprise, it will be difficult to continue. "As far as I know, many factories are still awkward and there are not many closures." Ye Yuqiao, an assistant to the export company and general manager of Guangdong Silk International Group Garment Co., told this newspaper that the enterprises that were closed were mainly large foreign companies. "They are large in scale, so if they fail, the impact will be relatively large." Lin Jiang also believes that various factors such as rising raw material prices and rising labor costs are still continuing. Under this circumstance, some enterprises will survive. It is getting harder and harder, which has forced Dongguan enterprises to accelerate the pace of transformation, upgrading and transfer.