China Business Review

Global banks cautious with loans
Some small and medium enterprises think crisis will last two years

Small and medium enterprises worldwide are facing difficult times, especially with bank loans, during the current economic crisis. Verne Harnish, founder of Entrepreneurs' Organization, remarked in an interview with China Business News that almost all its members have experienced the adverse impact of this crisis and estimate the crisis will last two years. He also mentioned that while the crisis may bring difficulties to some enterprises, it also provides opportunities for many small and medium enterprises. "The policies by the Chinese government to increase domestic demand present an opportunity for these small and medium enterprises. What they need to do is to change their thinking and business model quickly as well as highlight the uniqueness of their products, so as to adapt to market changes and survive the crisis," said Verne.