Insufficient Funds Derail SMEs’ Expansion Plans China suppliers want to take advantage of the better export environment, but investment gaps are delaying capacity and capability upgrades. Some makers turn to friends and family for loans instead.
The improving global economy and export situation in China are encouraging many companies to boost investment in capability expansion and product development. Small and midsize makers, however, are finding it difficult to obtain substantial funding needed to carry out such plans.
At the height of the 2009 financial downturn, many small and midsize suppliers scaled down their operations to cut costs and stay afloat. …