Interview with Chen Chunhua: the government needs to increase efforts to help small and medium-sized enterprises overcome difficulties

category:Finance
 Interview with Chen Chunhua: the government needs to increase efforts to help small and medium-sized enterprises overcome difficulties


Chen Chunhua

In the face of crisis, the enterprises immune system is very important. Chen Chunhua pointed out that this immune system includes: stable finance, especially good cash reserve, sound business structure, quality scale, cost ability, excellent leaders and members of organizations with the same desire, good customer relationship, and value partners to keep up with changes in consumer habits, and The trend of technological change. Enterprises without a good immune system often encounter challenges first when they are in crisis.

In recent years, local governments have introduced many policies to help enterprises get through difficulties. From the perspective of enterprises, Chen Chunhua believes that the government needs to increase the tax reduction and support policies for small and medium-sized enterprises. For example, we should appropriately reduce the value-added tax of industries seriously affected by the epidemic and reduce the relevant income tax. Reduce the burden of small and medium-sized enterprises. Increase the income tax deduction for enterprises and individuals participating in donation, encourage social donation, etc.

In addition to policy support at the government level, Chen Chunhua believes that, fundamentally speaking, the rapid adjustment of SMEs themselves is more critical. First of all, it emphasizes that the most direct and effective action is to start from the inside and tap the potential inside, so as to ensure the continuous cash flow. Second, we need to build consensus with our employees to overcome difficulties. Third, look for opportunities for cooperation and symbiosis. For example, some restaurants need to be closed, but they cooperate with HEMA fresh food. Employees go to work in HEMA fresh food. Fourth, innovate the business and seek the possibility of resuming operation. For example, in the Dongpo store of Meizhou, if no one eats in the epidemic, they sell vegetables. Selling vegetables can help the community live, help the staff to work and keep the store open.

Many great enterprises often grow up in the crisis. According to Chen Chunhua, many new business opportunities will be born after the epidemic. Smart city, online mode, new work mode, big health field, online and offline integration, AI and big data will bring many new business possibilities.

The following is a compendium of interview records:

NetEase Finance and Economics: how do you judge the impact of the epidemic? How long will the impact on enterprises last?

Chen Chunhua: many experts have predicted the impact of the epidemic on the economy. According to the report of Evergrande Research Institute, from a macro perspective, the sudden drop in demand and production will have an obvious impact on investment, consumption and export, and in the short term, it will bring unemployment and price rise. For mesoscopic industry, catering, tourism, film, transportation, education and training are the most impacted industries, and medical and online game industries benefit. For the impact of micro individuals, private enterprises, small and micro enterprises, migrant workers and so on are more damaged.

On the one hand, we should recognize that the epidemic has a huge impact on Chinas economy, and we should all bear the pressure of economic downturn; on the other hand, we should be aware that the fundamentals of Chinas economy will continue to grow. This is our basic judgment on the economy under the epidemic.

The impact of the epidemic on different enterprises will be different. For example, on the first day of construction, the whole people will usher in the era of remote collaborative office. The direct consequence of this is: nail nail, enterprise wechat, etc. are impacted by the huge traffic influx in a short time, and the service is unstable. On February 3, nearly 200 million people started working from home, according to data provided by pegs. Therefore, for medical and pharmaceutical, health insurance, online, big data, intelligence and related business models, enterprises will have a relatively positive impact, and will continue to promote development.

However, for traditional enterprises, especially those small and medium-sized enterprises that rely heavily on offline business, have single business and weak profitability, the degree of damage will be great, and the impact on enterprises will last for long. It needs to be judged according to epidemic prevention and control and policy hedging, as well as recovery of economic activities and other factors. However, for small and medium-sized enterprises, the epidemic has a large impact on the industry, industry and industry The state has a great influence and may last a long time.

NetEase Finance and Economics: in the face of major crisis, what problems do you think Chinas enterprises expose that are ignored every day?

Chen Chunhua: its true that when the economic environment develops better or is relatively stable, the challenge and impact on the enterprise is not so great, so the enterprise only needs to do its own operation, provide good products or services, have its own core capabilities, and generally show good business results. However, when facing crisis, the elements that test enterprises have changed. For example, in the case of Wuhan epidemic, the individual with good self immunity has strong ability to resist risks. The same is true for enterprises. In the case of crisis, it depends on their own immune system. This immune system includes: sound finance, especially good cash reserve, sound business structure, quality scale, cost ability, excellent leaders and members of organizations with the same desire, good customer relationship, and value partners to keep up with the change of consumer habits and technology.

From this point of view, in a stable economic environment, if an enterprise does not pay attention to conservative finance, quality development, loss and expansion, internal operation efficiency and cost level, it will only manage and control, not focus on the short-term, not build value partnership, but do the whole industry chain itself, unable to keep up with customers or Consumers are used to being indifferent to technological changes, or following the original experience and business model. Such enterprises often encounter challenges first when they encounter crises.

NetEase Finance and Economics: what preparations should enterprises make on weekdays to strengthen their anti vulnerability ability and deal with the black swan incident?

Chen Chunhua: in fact, the answer to this question is very clear. Many managers of enterprises know that an enterprise with good immunity can build at least four abilities on the basis of its core business: 1. Leading market core competence; 2. Relatively strong profitability; 3. Relatively strong anti competitiveness; 4. Improvement of its comprehensive ability and solid financial foundation. Therefore, in daily operation, we need to focus on these four capabilities to help enterprises strengthen their immunity. When the impact comes, enterprises with strong immunity will be more resilient and resistant.

NetEase Finance and Economics: for small and medium-sized enterprises, its even more difficult. A survey of 995 small and medium-sized enterprises shows that 85% of them cant survive for three months. How should small and medium-sized enterprises help themselves? What should be done to find a turning point from the crisis?

Chen Chunhua: I also see this research report. In the earlier days, I wrote a special article calling for a prevention and control war to protect small and medium-sized enterprises at the same time of epidemic prevention and control. I hope the government will issue relevant policies as soon as possible, and all levels of governments will take action in recent days. However, fundamentally speaking, the rapid adjustment of SMEs themselves is more critical. Naturally, I would like to stress that the most direct and effective action is to start from the inside and tap the potential inside to ensure the continuous cash flow when the external market does not recover. Second, we need to build consensus with our employees to overcome difficulties. Third, look for opportunities for cooperation and symbiosis. For example, some restaurants need to be closed, but they cooperate with HEMA fresh food. Employees go to work in HEMA fresh food. Fourth, innovate the business and seek the possibility of resuming operation. For example, in the Dongpo store of Meizhou, if no one eats in the epidemic, they sell vegetables. Selling vegetables can help the community live, help the staff to work and keep the store open.

NetEase Finance and Economics: after the Spring Festival, many enterprises begin to return to work. How should enterprises stabilize their teams and rally their hearts? What are your suggestions for managers?

Chen Chunhua: the core of enterprise stability team is to let employees see the hope and have specific work to start. The first is the confidence and management willpower of enterprise leaders. The more difficult it is, the more leaders are needed to give us confidence and guidance. Second, determine the specific measures of the company to deal with the epidemic crisis, and communicate with employees clearly. Third, determine the long-term development direction of the company, so that employees can see the future and hope. Fourth, provide employees with specific difficulties encountered during the epidemic and help them to enter the working state effectively. Fifthly, we should cooperate with our partners, speed up the recovery of production and operation, and find strategies for promoting the industry and social economy. Sixth, strengthen internal communication and learning, transmit corporate culture and values, and form a consensus between employees and the enterprise.

NetEase Finance and Economics: the government has issued many policies to support enterprises to tide over difficulties. What are your supplementary suggestions on policies?

Chen Chunhua: Im not a person who does macro research, but because I have worked with enterprises for a long time and I also understand the real needs of enterprises, I try to see the content of policy needs from the perspective of enterprises.

Based on the experience of fighting against SARS in 2003, the state needs to timely launch the corresponding policies to stop the epidemic. On the one hand, it should increase the investment related to the epidemic, including scientific research, medical treatment, epidemic prevention and control materials, and more need to increase the subsidies for front-line medical staff.

On the other hand, we need to increase the policy of tax reduction and assistance to small and medium-sized enterprises. Appropriately reduce the value-added tax of industries seriously affected by the epidemic and reduce the relevant income tax. Financial subsidies shall be given to the damaged industries during the period of being affected by the epidemic. Taking into account the interests of the enterprise and employees, implementing the paid leave system of employees, at the same time, extending the leave and delaying the return to work period salary payment shall be arranged reasonably by the enterprise rather than forced salary, reducing the phenomenon that the enterprise will increase the layoff after returning to work due to excessive burden, reducing some expenses that need to be borne by small and medium-sized enterprises, and reducing the burden of the enterprise. Increase the income tax deduction for enterprises and individuals participating in donation, and encourage social donation. For enterprises, we can consider extending the support of repayment of principal and interest in special period, and discuss how to provide support and help in loan, finance and other related fields.

Moreover, how to restore the supply of living materials as soon as possible, how to balance the epidemic prevention and control and the recovery of economy and life, is an overall system engineering, and also requires the government to carry out multi-dimensional work.

NetEase Finance and Economics: what new business opportunities do you think will emerge after this epidemic?

Chen Chunhua: after this epidemic, there will be many new business opportunities, which can be embodied in the following areas: 1. Smart city. There will be new business opportunities in the related fields of smart city operation. 2. Online mode. Online mode will be widely used in the consumer end of peoples daily life, online entertainment, games, education, knowledge payment, etc., will have a good development. 3. New working mode. In this epidemic, byte beating, Suning, Huawei and other enterprises all chose remote office, and the collaborative office tool business of nail and enterprise wechat is also an explosive growth. After this epidemic, remote office will become the choice of a large number of enterprises or industries. 4. Big health. Peoples awareness of insurance will be strengthened, the demand for insurance will be increased, and peoples expenditure on insurance will be increased. At the same time, there will be a large market demand for health care products and health food. Health care, medical care, health care, insurance and large health fields will accumulate greater development energy. 5. Online and offline integration. Whether its retail industry, or logistics distribution, community service and other fields around business, there will be opportunities. 6. AI and big data. AI technology and big data technology will also bring new possibilities.

Produced by Netease Research Bureau (wechat Company No.: wyyjj163)

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