The financial crisis on the impact of SMEs in China

and Countermeasures

By the U.S. sub-prime crisis triggered by the financial crisis spread to all areas of the world, has not only the financial crisis, but a history of rare and strong impact on the world Economic crisis. Integration into the world economy, China has also been greatly affected, especially SMEs. Since the reform and opening up, small and medium enterprises developed rapidly, China's industrial restructuring, to ease the employment pressure, technological innovation, promoting Economic growth has played a very important role, but this time the economic crisis of the majority of SMEs have been facing crisis of survival, if you do not have a high degree of attention and to take effective measures, it may cause greater volatility in the national economy, the threat to build a harmonious society. This article will brief analysis of the financial crisis on the impact of China's small and medium enterprises and to propose measures to bail out small and medium enterprises in order to be helpful. The financial crisis on China's enterprises, especially SMEs, is a very serious impact, resulting in a lot of SMEs are forced to cease operation or even bankruptcy.

(1) market decline in aggregate demand, sales of small and medium enterprises affected.

The financial crisis had a direct impact on SMEs is a decline in export volume. The sub-prime crisis in the world economic recession, decline in international demand, China's SMEs, exports, reduction in export trade, which makes for a relatively high dependence on foreign markets, export-oriented small and medium enterprises in the production declines, the profit decline in the state, especially in the eastern coastal many enterprises have been cut, layoffs or even close. There are also turning to SMEs in the domestic market, in fact, depressed foreign markets, while domestic demand is declining, due to: the impact of economic transmission mechanism, the financial crisis has led to the stock market downturn and a decline in corporate profitability, is also a corresponding reduction in income the purchase of desire is not wang. On the other hand, from the financial crisis for the world economy creates a fear of mind to consumers, in order to take preventive measures, they try to curb government spending and reduce consumption. These have led to the difficult situation of domestic-based small and medium enterprises, or even bankruptcy. Reduction in the