A crisis can test the risk control capabilities of financial institutions.
Text | Mig Russell
Recently, two professors from Tsinghua University and Peking University jointly released a research report.
The data disclosed in the report is a bit surprising: 34% of SMEs can only last for one month, and 85% of SMEs can only last for three months.
Practitioners and experts estimate that the epidemic may cause losses of nearly one trillion in the catering industry and 1.5 trillion in the tourism industry.
Small and micro enterprises are anxious. As a life-saving financial industry, they have two attitudes towards this.
Some financial institutions tighten their risk control and only lend to high-quality companies. “Finance is not charity.”
Some platforms are rushing ahead, providing low-interest loans to small and micro enterprises. For example, Ctrip and Meituan have said that they have prepared 10 billion funds for this.
“The real crisis can test the strength of risk control of financial institutions.” Practitioners said that institutions with risk control capabilities may rise against the trend in a crisis.
01 Little micro rushes
Since the outbreak, He Qiyu, a manufacturing boss in Beijing, has been “accounting” every day.
“There is still 1 million cash on the account. Now the monthly salary and rental expenses of the staff are more than 300,000, that is, they can only support for 3 months.” This is a simple division problem.
“Every day I open my eyes, I lose more than 10,000 yuan. Every hour, I lose nearly 500 yuan, which is too torture.” So, He Qiyu tried to make this problem a subtraction problem.
He communicates with his employees. When he stays at home, can he not pay without paying for social security.
“The personnel department not only did not understand, but led everyone to make trouble.” He Qiyu worked hard, “Employees only stand on their own stand, no one stands at the company’s perspective.”
Subtraction can’t be done. He Qiyu has to watch his bloodline decrease every day.
Like He Qiyu, there are a large number of small and micro business owners who are suffering daily on the verge of life and death.
Recently, Zhu Wuxiang, a professor at the School of Economics and Management, Tsinghua University, and Wei Wei, a professor of management at the HSBC Business School of Peking University, jointly released a survey report on small and micro enterprises.
They surveyed 995 small and micro enterprises, and found that 34% said they could only last for one month.
33% of enterprises can maintain for two months, and nearly 18% of enterprises can maintain for three months.
That is to say, 85% of companies can support up to three months.
How much has the epidemic affected these companies?
Almost 30% of companies estimate that the epidemic will cause their operating income to decline by more than 50% in 2020; 28% of companies expect their operating income to decline by 20% -50%.
At present, the catering, tourism, KTV, training, film and television industries have been hit hard by the epidemic.
Take the catering industry as an example.
China has more than 20 million catering companies, most of which are small and micro enterprises. In 2019, the size of China’s catering market was 4.67 trillion.
“The Spring Festival is the peak season for the catering industry, and many restaurants rely on this wave to make half a year of money. I estimate that the loss of the catering industry this time may be close to one trillion.” Sun Yamin, chairman of Cai Mo Mo said.
Take tourism as another example.
The Spring Festival is also the peak season for tourism. Previously, the outside world had predicted that during the Spring Festival in 2020, China’s tourists would reach 450 million; for the whole year of 2020, the scale of China’s tourism market would reach 7 trillion yuan.
“The loss caused by the outbreak to China’s tourism industry is estimated to reach 1.5 trillion yuan,” said Yang Yanfeng, a tourism expert.
Under the epidemic, the golden season is winter.
Many companies have been unable to survive and have announced the dissolution or bankruptcy of their teams.
On February 6, Brother Vocational Education, an IT vocational education company, officially declared its brand “bankrupt.”
The company said that from now on, the brothers’ Beijing campus will stop enrolling and all employees will be demobilized; its