SMEs can get help from government and banks

Pearl River Delta region in Guangdong province in China is facing the problem of labor shortages in the manufacture industry. In fact, Guangdong province has been dubbed "factory of the world", since many products were made there and sold out in the global market with the tag “made-in-China”. Factories there have problems of soaring costs. Guangdong province is a immigrant city where many inland citizens rushed to Guangdong in order to find a better job, compared with jobs in their hometown. As an immigrant, the worker really has the demand of higher wages. More and more migrant workers moved to Guangdong, which caused labor supply exceeding demand. However, with higher inflation and living cost when factories are unable to meet the migrant workers' wage demands, they return to their home provinces. Guangdong's labor department estimates that the province needs an additional one million workers and this could have dangerous repercussions for economy and Chinese society as a whole. Small and medium-sized businesses are hardest hit. Many SMEs may have been shut down since they are operating on narrow profit margins when there is a labor problem. Local government must reevaluate the role of the SMEs in economic development. Since SMEs can really offer a lot of job opportunities. Guangdong local government is planning to give financial support to SMEs such as tax cut and called on local banks to give small loans to SMEs at low interest. IBUonline is a B2B foreign trade platform, which could help SMEs to develop overseas market. More details are on IBUonline homepage, where presented foreign trade entrustment service.