CRI听力：Why the Number of Small Businesses Is Dropping

The number of China's small private industrialists and businessmen dropped by 6.5 million between 1999 and 2006, according to the latest official statistics. That means a decline of 870,000 per year.

Reflecting the view that small business ownership is discouraged because of business-management fees, ministries and commissions have already begun reforming these fees.
 
Let's hear how the media have responded.

Reporter:

An article from Guangzhou Daily says, on the one hand, the declining number of small private businesses reflects their development through merger and other forms of cooperation. This is a general trend and should be encouraged. On the other hand, such a sharp decrease in the number of small business runs counter to the current economic boom. Medium and small enterprises and businesses play a very important role in economic stability, so their number should be in proportion to the number of large enterprises. Excessive fees have been a cause of the decline.

The Beijing News carries an article blaming the business management fee as one of the reasons behind the decline in small businesses. This fee is only applied to small businesses, which puts them in a disadvantaged position in the market. Moreover, there is no rational basis for the charges, which contradicts the government's responsibility for public service and economic regulation. Therefore, the paper recommends that the business management fee be cancelled.

The Yanzhao Metropolis also discusses the issue. It says rapid increases in urban land prices and rents make many small businesses uNPRofitable. These businesses also have to face rising prices of power and raw materials. It's also very hard for them to get financial support from banks. The author asks the government to tackle these problems, saying this matter also affects the livelihoods of millions.