Security companies how to break the ** bottleneck

At the end of 2013, the State Council issued the "Decision of the State Council on the Issues Concerning the Transfer System for Small and Medium-Sized Enterprises in the Whole Country," which clearly stated that the national share transfer system is designed to support service-oriented, innovative, and growing micro, small, and medium-sized enterprises (SMEs), including those in the security sector. It provides services such as public share transfers, equity financing, bond financing, and mergers and acquisitions. This initiative is expected to significantly expand financing opportunities for SMEs in the security industry and alleviate their long-standing financial challenges. For an industry dominated by SMEs, this represents a major opportunity.

As the new year of 2014 began, the A-share market saw fresh entrants in the security sector. Dongfang.com, a leading provider of video surveillance management platform services, was preparing to list on the Growth Enterprise Market (GEM). The process of going public has become a crucial pathway for SMEs in the security industry to access capital and grow.

Looking at the "12th Five-Year Plan" for the security industry, there are currently over 30,000 security companies in China, with SMEs making up the majority. These businesses have played a vital role in job creation, local economic development, and the growth of specialized industries. However, in recent years, rising costs—especially labor and materials—have put pressure on these companies. At the same time, government efforts to stabilize the economy and tighter monetary policies have led to higher interest rates for corporate loans and private capital. Additionally, the increasing RMB exchange rate has made export trade more challenging. All these factors have created significant difficulties for security companies, especially SMEs that are primarily manufacturing-based.

Despite these challenges, due to national policies, industry trends, and internal factors, the issue of financing remains a major bottleneck for the development of security SMEs. Effectively addressing these financing issues is crucial to unlocking the potential of SMEs and enabling them to contribute more effectively to economic growth and social stability. This has become a pressing concern across the industry.

This article will explore the current problems, underlying causes, and available financing channels for SMEs in the security sector, while also offering practical solutions aligned with relevant policies and industry developments.