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Home / Knowledge / News / Textiles / SMEs in Wenzhou almost on brink of disaster

SMEs in Wenzhou almost on brink of disaster

27
Oct '08

A survey was done in early July by the Director of the comprehensive economy department of Wenzhou Economic and Trade Commission from amongst 15,521 small and medium enterprises in 31 Industrial and Development Zones in the province.

The findings of the survey are startling. 1009 corporate enterprises have shut down temporarily or have suspended operations while another 250 enterprises have totally collapsed. The 1259 enterprises accounted for 8.1 percent of the surveyed enterprises.

“Wenzhou has a total number of 140,000 small and medium enterprises and 4 percent of Wenzhou businesses had collapsed last year and the rate is likely to rise to 5.9 percent this year," said one of the officials connected with the survey.

But the official was optimistic that the rate would not grow beyond 5.9 percent. He added by saying that, "In fact, it is difficult to get accurate statistics since many families in Wenzhou close one company first and open another company later, but do not write off or de-register the original company".

Fibre2fashion News Desk - China

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