What challenges are private enterprises in China facing?

Private enterprises are facing greater competitive pressure and survival challenges. Because the living environment of private enterprises tends to deteriorate, many private enterprises are facing great difficulties. Only by striving to survive is the most urgent thing, and they can seek development.

At present, private enterprises are facing great challenges and pressures. Many small and medium-sized private enterprises are overwhelmed by various price increases, rising costs, rising raw materials, rising wages of workers and rising rents. As the cost of rent rises, workers' wages will face the pressure of rising prices. Private enterprises, especially small and medium-sized enterprises, in the market competition, some fields and markets with relatively rich conditions and profits are allocated to state-owned enterprises and central enterprises, while some industries and fields with high risks and low profits let private enterprises compete, with limited market capacity, overcapacity, vicious competition among enterprises, homogenization of goods, pushing down prices, lowering prices, and even increasing sales, and losing money.

It is difficult and expensive for private enterprises to raise funds. Although the relevant policies have been lowered to favor small and medium-sized enterprises, major banks have also increased their credit support for small and medium-sized private enterprises. However, private enterprises cannot be fully supported by banks, otherwise they will face great risks. We should develop some social private enterprises, such as small mortgage companies and bond markets, so that private enterprises can directly raise funds and idle funds can flow to private enterprises normally.

Due to the intensification of global competition, private enterprises and low-end products have overcapacity, small private enterprises have backward equipment, insufficient innovation ability and low technical level, and even many of them are small workshop-style factories. In the fierce competition for survival, profits are getting thinner and thinner. Only by trying to adjust the industrial structure, produce high-end products and products with scarce market, and strive hard in the high-end market, can enterprises obtain normal profits and have a bright future, otherwise a large number of private enterprises will face bankruptcy and elimination at the low end forever.