3.01 million small businesses fail in China by 2020.
The Communist Party’s viral Epidemic continues to wreak havoc in China, closing cities and regulating people’s activities, causing significant damage to China’s small businesses. According to statistics, 3.01 million small private businesses have already written off operations in China in 2020, mainly in the eastern coastal regions, with more than a million of these small stores closing or transferring outright.
The March issue of Xinhua News Agency’s “Half Moon Talk”, the official media of the Communist Party of China, reported that 17 of the 44 stores on one side of a 900-meter road in Tianjin, a popular shopping district popular with young people, have suspended their operations and many are being transferred.
According to China Enterprise Survey data, from January to November 2020, China suspended and cancelled 3.01 million individual households, individual to enterprise and other subjects, and then deducted mobile vendors, online stores, etc., of which the number of small stores and stores closed down is still in the millions.
This data, the closure of small stores are mainly concentrated in the eastern coastal region, of which Jiangsu, Guangdong and Shandong provinces are among the top three; these three provinces are also among the top three in terms of GDP value last year, and the economic growth rate is higher than the national 2.3% or the same. This also reveals the unevenness of local economic development.
Small stores closed in the region, the scenic spots, commercial streets higher than the general community, the Northeast, Sichuan, Tianjin and other places, the scenic spots small stores in the lack of tourists, the business is particularly dismal, but the community small stores and the daily needs of residents, the least affected. From the situation in Tianjin, Changchun, Shenyang, Chengdu, Guangzhou and other cities, Education, fitness, bathing and other industries closed down more.
Data show that the business 2 to 5 years of small stores are most likely to close. 2020, less than 5 years in business, 69.4% of the stores suspended or canceled operations, less than four years 58.6%, less than three years 45.5%, less than two years of small stores of also 29.6% out of business.
In terms of the distribution of registered capital amount, the largest number of small stores and stores closed in the first 11 months of 2020, with a capital amount of 100,000 to 1 million yuan, more than 757,800 rooms, accounting for 35%; 1 million to 2 million yuan capital amount accounted for 29%, about 610,000 rooms.
In addition, data from 2019 shows that a small private enterprise, which can drive 2.37 people to employment, supporting the economy and livelihood of the grassroots, millions of small stores closed, directly rushing more than 7 million people to employment, the livelihood of millions of people affected.
And the problem is not just a simple livelihood issues, social problems follow the derivation, such as the boss ran away leaving a pile of mess, debts, landlords can not collect rent, someone turned to pornography, robbery … and so on.
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