Covid-19 has dealt a heavy blow to the global economy, including Vietnam. This epidemic has seriously affected all industries and business fields, casting a dark shadow on the economy. In which small and medium enterprises, Startup is the hardest hit.
According to the General Statistics Office, in the first 4 months of 2020, our country had 22,700 enterprises (enterprises) temporarily suspended operations, up 33% over the same period last year. Nearly 14,000 businesses stopped operating pending dissolution procedures. According to some experts, this number may be higher because currently there are many micro-enterprises starting up without business registration. For businesses that can be dissolved, it is already quite good. So it's important now to focus on what can make money to keep the business afloat first.
Among many difficulties, there is a burning problem, which has received a lot of attention from business owners in the recent time when the Covid-19 epidemic raged, which is how to raise capital during this time. What is the point of needing money to maintain operations and suffer short-term losses, business activities are stalled, business cash flow can't keep up?
At the online talk show with the content "Removing cash flow problems for businesses during the crisis" with the participation of leading experts in the fields of business and finance, there was a discussion to help solve the problem. and offer solutions to solve cash flow problems for small and medium-sized enterprises during the current complicated situation of Covid-19.
Experts advise solutions to overcome cash flow difficulties for businesses during the Covid-19 epidemic.
Mr. Lam Minh Chanh - Founder of BizUni School of Business Administration, co-founder of the Management and Startup Group, said: "There are two basic types of capital: borrowed capital and contributed capital. Many small and medium enterprises are currently Now I only worry about doing business, I don't know how to have a relationship with the bank to get a loan. Especially, these businesses often do not have clear invoices when buying and selling. I advise young people, small businesses to be transparent about their business. number, revenue ... to pay taxes with the state and need to be close to the bank. If there is no relationship, credit with the bank is a loss".
Regarding capital raising, according to Mr. Lam Minh Chanh: "Normally, it will take about 3-6 months for us to call outside capital. During the epidemic period, the business died before being able to raise capital. Therefore, this is a period when we have to depend a lot on the internal resources of the business. We must find ways to sell and have sales so that we can maintain the operation of the business first."
Mr. Dang Van Thanh - Chairman of TTC Group, Chairman of Vietnam Brand Club said: In developed countries, they do not orient idle money for savings but orient for investment. If the investment will be more capital, especially for start-ups. Of course, investing comes with risks.
Mr. Dang Van Thanh gave advice: "For small and medium-sized enterprises, they should make their financial statements transparent so they can access many capital flows, not just banks. Banks are also businesses. , is also subject to certain management by the State and must obey the highest authority, which is shareholders.Small and medium-sized enterprises want to access loans in this context, the reticence of banks is also can't be blamed".
In particular, in the fight with Covid-19, with the crisis, businesses should take advantage of their "dry food" source first.
Originally from a banker, Mr. Huynh Buu Son - Banking and finance expert gave his own opinion. According to Mr. Son: “We should ask the question, why should we borrow money? If the business has stagnated, exhausted, has no money to maintain the business and pay employees, what is the use of borrowing money? If you borrow money for consumption, why do you have money to pay? And with that goal, no bank will lend."
This banking and finance expert also made a comment: Our credit and financial system in general still has some shortcomings, failing to meet the borrowing needs and capital needs for start-ups. Many businesses face many difficulties in accessing social capital.
Mr. Son also added: "In developing countries, there are commercial banks for working capital. A part of medium and long-term investment. Besides, there is a development banking system for projects of enterprises It is segregated There are credit cooperatives, there are funds for people to access very small capital flows There are many types to serve the capital needs of enterprises Big fish access to big bait, small fish, big fish can access small capital".
In our country, partly because we are afraid and do not want to let the capital flow of the society face too much risk, we see black credit growing a lot.
Mr. Ngo Cong Truong - Chairman of John & Partners Education and Consulting Joint Stock Company said: "Small and medium enterprises in difficult times always have two problems that need to be solved: revenue and cost. In this difficult time for small and medium enterprises, selling to earn every penny is very valuable."
Mr. Truong agrees with Mr. Thanh about: "Enterprises should now use their "dry wages", which means that this is the time when small and medium enterprises should take the money they have saved to use. Or if If you have property, you can sell it, take your blood to save yourself.No one can save you like yourself.An equally important thing is that businesses need to cut all unnecessary expenses down to the level. The lowest possible".
Mr. Truong quoted a very famous saying, an advice from startups from Silicon valley: "Look at the business you are doing, which is a business. Startups in Vietnam often consider startups as their brains. But if we consider it as a child, it is very difficult for us to give up. If we love our "spirit child" too much, we can try for another 6 months, if it doesn't work, then put it off. clean it up now."
Chairman of John & Partners Education and Consulting Joint Stock Company also commented: “This is the period when businesses can give up everything to return to zero. Return to the starting line to restart. Small and medium enterprises have tried and failed a lot. So at this stage, if it's too difficult, just consider yourself wrong and start over. This is very harsh advice, but it is flat and practical.”
