Security companies how to break the ** bottleneck

At the end of 2013, the State Council issued a significant policy titled "Decision of the State Council on Issues Concerning the Transfer System for Small and Medium-Sized Enterprises Nationwide." This initiative aimed to support innovative, entrepreneurial, and growing SMEs, including those in the security sector. The national share transfer system was designed to provide services such as public share trading, equity financing, bond issuance, and M&A activities. This move is expected to significantly enhance the access of security SMEs to capital and ease their long-standing financing challenges, offering a major opportunity for the industry.

In early 2014, the A-share market saw new opportunities for security companies. Dongfang.com, a leading provider of video surveillance management platform services, was preparing to list on the GEM (Growth Enterprise Market). Such listings are becoming a crucial pathway for SMEs in the security industry to raise capital and scale their operations.

Looking at the "12th Five-Year Plan" for the security sector, China currently has over 30,000 security companies, with the majority being SMEs. These companies 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 raw materials—combined with tighter monetary policies and higher interest rates, have placed increasing pressure on these businesses. Additionally, the strengthening RMB and difficulties in export trade have further complicated the situation, making it harder for many security SMEs to sustain growth.

Despite these challenges, the industry faces a critical issue: limited access to financing. This has become a major bottleneck, hindering the development of SMEs in the security sector. Addressing this problem is essential not only for the survival of these companies but also for their potential to drive broader economic growth and contribute to social stability.

This article explores the current challenges SMEs face in securing funding, analyzes the underlying causes, and evaluates existing financing channels. It also offers practical solutions aligned with national policies to help the security industry overcome its financial hurdles and unlock its full potential.