What are the difficulties encountered by enterprises in production and operation

(1) SMEs are facing difficulties in production and operation, mainly due to the sharp decline in external demand, resulting in fewer orders and thus the formation of business difficulties, of course, the slowdown in external demand is the trigger for the problem, making China's small and medium-sized enterprises to further expose the full extent of the problems that exist. The current difficulties faced by SMEs are mainly due to the rapid increase in the cost of labor and raw materials, as well as the austerity policies adopted in order to curb the inflation brought about by the stimulus policies in the previous period, which of course further exposed the problems of SMEs themselves. "Adjustment of the tax policy for foreign-invested enterprises has increased the expenses of "three-funded" enterprises and reduced their profits, and the development of strategic emerging industries has been explored in various ways such as mergers and acquisitions. SIC View

(2) The two "dilemmas" have exposed the deep-rooted problems of small and medium-sized enterprises (SMEs) themselves The deep-rooted problems of SMEs' development exposed by the international financial crisis are the excessive reliance on external demand to absorb production capacity under the condition of insufficient domestic demand for a long time and the excessive reliance on the international market. The development model is highly risky for SMEs. The deep-rooted problem revealed by the current predicament of SMEs is that the production mode of relying on labor, resources and environmental inputs for a long period of time without the ability to innovate, and the competitive mode of relying on the expansion of production capacity to win are not sustainable. Large and continuous inputs of factors such as labor and resources will inevitably lead to price increases, and in the absence of technological and institutional innovation, it is difficult to absorb high costs through increased efficiency. When the two "dilemmas" are taken together, the problems that exist in the development of SMEs mainly include poor innovation, rising operating costs, high dependence on the international market, and in general, the problem of the production mode.