Small businesses suffer from power supply cuts

Small businesses across China are up in arms over an energy law that makes local authorities cut power supply every month.

The local authorities' move, aims to meet the target set by the government to reduce energy use by 20 per cent in each unit of gross domestic product by the end of the 2010.

It is part of China's five-year plan starting from 2005 to boost the country's economy, according to Xinhua news agency.

A number of factories in Wen Zhou in southern China have been affected severely because of the cuts. One of the local plant managers Wu Lin, of Ouhai district, told the national newspaper China Youth: “It's really bad for our business and we're very worried.”

He said: “The local authority should have started the process long time back, and now they cut the electricity supply every 20 days a month, we really don't know how we are going to survive.”

The electricity cuts have also increased a demand for diesel fuel and candles across many parts of the country. This has led to a shortage of the fuel.

“The primary reason for the diesel shortage is that they [local authories] have cut the power supply to a lot of industries,” said KF Yan, research director at consultancy Cera in Beijing, according to the Financial Times.

The shortage of diesel fuel has in turn caused some embarressment for small businesses. In another southern city Chongqing, a local crematorium made headlines when it was discovered that corpses were stacked in fridges as there was no diesel fuel for the crematorium to operate fully.

Manager Fang Ai told the Chonging Evening Daily that the crematorium stopped operating temporarily.

he said: “Our place should be able to burn 10 corpses a day, but because of the shortage, we are now stopped working. And some of the families' funerals have also been severely affected.”

According to Xinhua, there were 15.6 per cent decline in China's energy intensity from 2005 to 2009, but it rose up again by 3.2 per cet in the first quarter of this year.

In May, Premier Wen Jiabao warned that he would use an “iron fist” to meet the five-year goal.

Officials in Beijing revealed that they intend to target the industrial sector, which have spent up to 70 per cent of the country's electricity, to achieve the goal.

However, local governments heavily depend on the industrial sector, mainly those state-owned biggest energy consumers, to get sufficient tax revenue to stay solvent.

Therefore, local officials have been searching for alternative way to save enegy by cutting power supplies to those local enterprises and small businesses.

Small businesses set to benefit from Olympics

by Yixiang Zeng

Small busi­nesses across the UK are expec­ted to have an estim­ated 3,400 con­tracts to deliver 2012 Olympic game related ser­vices and goods, says chief exec­ut­ive Mike Mul­vey from Lon­don Busi­ness Network.

The event, organ­ised on Tues­day in Strat­ford, is one of the hun­dreds of events held by the organ­isa­tion across Lon­don to intro­duce small enter­prises to upcom­ing oppor­tun­it­ies such as cater­ing, foot­ball goal post man­u­fac­tur­ing and bro­chure and web­site design.

Mike said: “6,600 con­tracts have already been placed to small busi­nesses around the coun­try and 35 per cent of these com­pan­ies are based in London.”

Accord­ing to him, the value of these new sub-contracts avail­able now forms part of over £1.7billion, which includes big­ger sup­pli­ers dir­ectly work­ing with the Olympic Deliv­ery Author­ity (ODA) and Lon­don Organ­ising Com­mit­tee of the Olympic and Para­lympic Games (LOCOG).

Catering2Order, a firm with 20 employ­ees based in South­wark, won their cater­ing con­tract on the Olympic con­struc­tion site two years ago.

John Charles, man­aging dir­ector of the com­pany, said: “We are expect­ing one mil­lion turnover for this fin­an­cial year. Win­ning the con­tract in such a dif­fi­cult fin­an­cial period is fantastic.”

“As a small com­pany we work with big­ger sup­plier, and we are also con­stantly get­ting more con­tracts because of our qual­ity and ser­vice deliv­ery and our track record.”

When asked how hard it is to get the con­tract, John said: “We got the con­tract through CompeteFor.

“The whole pro­cess is extremely com­pet­it­ive, I know lots of com­pan­ies achieved 100% score on the ques­tion­naire [designed by the buy­ing com­pan­ies], but they still can’t get the contract.

“You have got to offer your unique­ness and some­thing bey­ond what they require.”

Com­pete­For portal is a plat­form that links buy­ers and suppliers.

Com­pan­ies who wish to become part of the Olympic sup­ply chain need to register through the web­site and bid for the con­tract with other competitors.

Another pre­vi­ous con­tract win­ner is trans­late plus, a 35-staff firm that provides Welsh trans­la­tion ser­vice to Lon­don 2012’s edu­ca­tion web­site Get Set.

Dir­ector Per Sever­insen said: “The con­tract is very prof­it­able. And obvi­ously, it is a very good ref­er­ence for the poten­tial cli­ents to use our services.

“When they know that we are work­ing with the biggest sport­ing organ­isa­tion in the UK, they just think it is quite impressive.”

When asked whether London-based com­pan­ies have any pri­or­ity com­pared with the ones from other regions, Nick Winch, Olympic co-ordinator from the Fed­er­a­tion of Small Busi­nesses, said: “Lon­don com­pan­ies will get the con­tract if they are the best to deliver the contract.

“They won the con­tract not because they are local or small. What we do is to make sure Lon­don com­pan­ies are aware about the oppor­tun­it­ies and best pre­pared to bid for the opportunities.”

The chal­lenges small busi­nesses are facing, accord­ing to Nick, is some of the con­tracts might be too big for them to put things together.

“We and other organ­isa­tions right from the begin­ning have spoken to the ODA and LOCOG that we wanted the chances to be as small-business friendly as possible.”

Small enterprise story (the second version)

Small businesses across the UK are expected to have an estimated 3,400 contracts to deliver 2012 Olympic game related services and goods, says chief executive Mike Mulvey from London Business Network.

The event, organised on Tuesday in Stratford, is one of the hundreds of events held by the organisation across London to introduce small enterprises to upcoming opportunities such as catering, football goal post manufacturing and brochure and website design.

Mike said: “6,600 contracts have already been placed to small businesses around the country and 35 per cent of these companies are based in London.”

According to him, the value of these new sub-contracts available now forms part of over £1.7billion, which includes bigger suppliers directly working with the Olympic Delivery Authority (ODA) and London Organising Committee of the Olympic and Paralympic Games (LOCOG).

Catering2Order, a firm with 20 employees based in Southwark, won their catering contract on the Olympic construction site two years ago.

John Charles, managing director of the company, said: “We are expecting one million turnover for this financial year. Winning the contract in such a difficult financial period is fantastic.”

“As a small company we work with bigger supplier, and we are also constantly getting more contracts because of our quality and service delivery and our track record.”

When asked how hard it is to get the contract, John said: “We got the contract through CompeteFor.

"The whole process is extremely competitive, I know lots of companies achieved 100% score on the questionnaire [designed by the buying companies], but they still can't get the contract.

"You have got to offer your uniqueness and something beyond what they require.”

CompeteFor portal is a platform that links buyers and suppliers.

Companies who wish to become part of the Olympic supply chain need to register through the website and bid for the contract with other competitors.

Another previous contract winner is translate plus, a 35-staff firm that provides Welsh translation service to London 2012's education website Get Set.

Director Per Severinsen said: “The contract is very profitable. And obviously, it is a very good reference for the potential clients to use our services.

“When they know that we are working with the biggest sporting organisation in the UK, they just think it is quite impressive.”

When asked whether London-based companies have any priority compared with the ones from other regions, Nick Winch, Olympic co-ordinator from the Federation of Small Businesses, said: “London companies will get the contract if they are the best to deliver the contract.

“They won the contract not because they are local or small. What we do is to make sure London companies are aware about the opportunities and best prepared to bid for the opportunities.”

The challenges small businesses are facing, according to Nick, is some of the contracts might be too big for them to put things together.

“We and other organisations right from the beginning have spoken to the ODA and LOCOG that we wanted the chances to be as small-business friendly as possible.”

Small enterprise story (the first version)

Small businesses across the UK are expected to have an estimated 3,400 contracts up for grab to deliver 2012 Olympic Game related services and goods, says chief executive Mike Mulvey from London Business Network.

The event, organised at Tuesday night at Stratford, is one of the hundreds events held by the organisation across London to introduce small enterprises upcoming opportunities such as catering, florist, football goal post manufacture, and brochure and website design.

Mike said: “6,600 contracts have already been placed to small businesses around the country and 35 per cent of these companies are based in London.”

According to him, the value of these new sub-contracts available now forms part of over £1.7 billion which includes bigger suppliers directly working with the Olympic Delivery Authority and London Organising Committee of the Olympic Games (LOCOG).

Catering2Order, a social firm with 20 employees based in Southwark, won their catering contract on the Olympic construction site two years ago.

John Charles, owner of the company, said: “We are expecting one million turnover for this financial year. To won the contract, in such a difficult financial period, is fantastic.”

“As a small company we work with bigger suppliers, and we are also constantly getting more contracts because of our quality and service delivery and our track record.”

When asked how hard it is in getting the contract, John said: “We got the contract through CompeteFor. The whole process is extremely competitive, I know lots of companies achieved 100% score on the questionnaire [provided by the buying companies], but they still can't get the contract. You have got to offer your uniqueness and something beyond what they require.”

According to Mike, CompeteFor portal provides a platform to link buyers and suppliers.

Companies who wish to become part of the Olympic supply chain need to register through the website and bid for the contract with other competitors.

Translate plus, a 35-staff firm provides Welsh language translation service to the London 2012's education website for schools and colleges.

Director Per Severinsen said: “The contract is very profitable. And obviously, it is a very good reference for the potential clients to use our services.

“When they know that we are working with the biggest sporting organisation in the UK, they just thought it is quite impressive.”

When asked whether London based companies have any priority compared with the ones from other regions, Nick Winch, Olympic coordinator from Federation of Small Businesses, said: “London companies will get the contract if they are the best to deliver the contract.

“They won the contract not because they are local or small. What we do is to make sure London companies are aware about the opportunities and best prepared to bid for the opportunities.”
The challenges small businesses are facing, according to Nick, is some of the contracts might be too big for them to put things together.

“We and other organisations right from the beginning have spoken to Olympic Delivery Authority and London Organising Committee of the Olympic Games that we wanted the chances are as small-business friendly as possible.”