Why E-Commerce Giants Must Look Out For SMEs | Jing Daily

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According to a JD press release, JD launched its Spark economic support plan for SMEs, stall owners, and shopkeepers on June 2. The plan consists of three priorities: ensuring supply, assisting operations, and fostering employment.Under this plan, JD.com will select 50 billion quality goods and provide each small shop with a 100,000-yuan, interest-free credit for purchases. According to initial estimates, this support will be a lifesaving effort for millions of convenience stores and stalls, and it will ensure that 5 million people keep their jobs.Most of China’s small and medium-sized businesses have been hit hard by the pandemic and its related restrictions. A survey conducted in early February by the Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC) team and led by Peking University showed that 14 percent of the 2,349 surveyed SMEs couldn’t last longer than a month on cash flow and that 50 percent couldn’t last beyond three months.In short, many SMEs need to overcome serious difficulties to survive, and their failures would surely have a devastating effect on China’s economy. That’s because, according to The International Food Policy Research Institute, SMEs currently account for 90 percent of China’s employment, generate 80 percent of its …

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