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Guangdong SMEs get boost

Updated: 2011-09-22 18:06

By Alexis Hooi (chinadaily.com.cn)

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Small and medium-size enterprises (SMEs) in Guangdong province received a boost with the launch of a new business alliance on Thursday (Sept 22), amid worries of increasing problems for them to stay afloat in the global economy.

The alliance, which co-founders include IT giant Intel China Ltd, the Guangdong SME Informatization & Innovation Service Center, China Minsheng Bank's Guangzhou Branch and Chinese bank card group China UnionPay's Guangdong branch, helps businesses in the province gain access to much needed financing as they face growing difficulties to remain competitive.

Under the arrangement, SMEs will be able to use a high-tech payment system that links them to a network so that banks can determine their credit history and business activities to help them gain better access to loans and funds.

"Intel hopes this is the beginning of a much broader effort across China … SMEs are a crucial part of China's economy. Helping SMEs grow and innovate for the future is important to all of us," said Douglas Cougle, managing director of Intel China. "Intel and our partners are taking a step in that direction by collaborating together in this alliance to connect SMEs into the financial system … SMEs will be able to gain access to funding they so desperately need."

Huang Yuezhen, head of the Guangdong SME Informatization & Innovation Service Center, said the new alliance will provide a platform for businesses in the region to use better technology to boost their efficiency and use IT to stay competitive in the new business environment.

"We hope this platform offers one solution to SMEs' problems," he said.

Many SMEs in Guangdong, an economic powerhouse of the Chinese economy fueled by low-cost manufacturing, have been faced with rising overall costs and a widening gap in their working capital. Authorities have refuted claims of SMEs experiencing bankruptcies in the province and maintained that their general situation is stable.

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