Five Factors Restrict Development
Year:2008 ISSUE:36
COLUMN:POLICY, ECONOMY & FINANCE
Click:209    DateTime:Dec.24,2008
Five Factors Restrict Development         

According to a survey issued on November 15th by China Entrepreneur Investigation System of the Development Research Center of the State Council, five factors - energy and material cost rise, labor cost increase, capital deficiency, talent insufficiency, and innovation ability scarcity - are becoming the current restricts on enterprise development.
    The survey is the 16th national entrepreneur trace research organized by China Entrepreneur Investigation System annually. It applies the hierarchical random sample method to industries classified by China economic structure. Talking about the current difficulties in enterprise operations, 77.8% of the entrepreneurs chose "energy and material cost rise", 72.2% chose "labor cost rise", which rank the fist two positions among all factors. Besides, entrepreneurs are inclined to choose "capital deficiency", "talent insufficiency", and "innovation ability scarcity", which accounted for 57.2%, 41.8% and 29.4% respectively.
    In reference to the major factor influencing exports, the inquired think that "appreciation of RMB" and "stuff cost rise" are the two most influencing factors. In addition, "export rebate rate cut" and "overseas demand slump" are also regarded as the key factors influencing exports. When asked about "how would it impact on exports if RMB appreciated 5% to US dollars", 62% entrepreneurs selected "influencing largely" and "influencing quite large".