One Year After COVID: the Challenges and Outlook of Chinese Micro and Small Enterprises [open pdf - 968KB]
From the Abstract: "The Center for Enterprise Research and the Institute of Social Science Survey at Peking University, in collaboration with Ant Group Research Institute, conducted a new wave of Online Survey of Micro- and Small-Enterprises (OSOME) in March 2021. OSOME is a continuing effort to gain a better understanding of China's micro- and small- enterprises and self-employed businesses (MSEs) by conducting quarterly surveys on MSEs operating on the Alipay platform. The key findings of t he first quarter 2021 survey are as follows: 1. After exposure to the COVID-19 [coronavirus disease 2019] pandemic for over a year, the operational status of micro-and-small enterprises has significantly improved. [...] 2. Cost increases, in some cases due to a price spike in raw materials, and weak demand remain two key challenges facing micro-and-small enterprises and self-employed businesses. [...] 3. Compared with other forms of policy support, tax reduction is the most inclusive. [...] 4. In general, respondents characterized the travel restrictions during Chinese New Year (February 2021) as harmful. [...] 5. In response to the COVID-19 shock, a higher percentage of newly established businesses adopted online sales and electronic information systems than those established earlier. 6. The confidence indices on market demand, production, and revenues for the next quarter have returned to positive territory, indicating an optimistic outlook. The employment index remained just below the normal level, suggesting subdued expectations of expanded employment in the next quarter."
CGD Policy Paper 222; Center for Global Development Paper 222
Center for Global Development. Posted here with permission. Document is under a Creative Commons license and requires proper attribution and noncommercial use to be shared: [https://creativecommons.org/licenses/by-nc/4.0/].
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