The Research About Optimizing The Governance Mechanism Of SME

With the deepening of China's economic system reform, the enterprise governance hasdrawn more and more concern from China enterprise theory researchers. In the earlier years, thefocus of enterprise governance research is state-owned big and medium-sized enterprises, andthe central problem is the establishment of the modern enterprise system for this type ofstate-owned enterprises. The governance of Small-Medium Enterprises (SMEs) has beenneglected for a long time. In recent years, the SMEs have obtained substantial development. Butat the same time it has showed that their governance is not efficient enough, which will block upthe fast and healthy development of SMEs. Therefore, it is of great theoretical and practicalsignificance to explore the special needs of SMEs and to optimize their governance mechanism. This dissertation regards domestic SME as the main research object. Through thecombination of positive research and normative research method, the author analyzes anddiscusses the theory frame of SMEs, the present governance condition and the methods ofoptimizing the governance mechanism of SMEs in details. Firstly, the dissertation analyzes various definitions of enterprise governance mechanism, andabstracts the general characters of these different definitions. The essence of enterprise governancemechanism is a kind of contractual relations; the function of enterprise governancemechanism isto balance the triple relationship between responsibility, rights and benefit; the objective of theenterprise governance mechanism is to convert the traditional check-balance strategy to thewin-win strategy; the scope of enterprise governance mechanism has extended from the interiorgovernance to the exterior governance; the researching object of enterprise governance mechanismdevelops from the questions to the system. The author discusses the definition methods of theSMEs from both the qualitative and quantitative aspects, and analyzes the domestic andinternational definition standard of SMEs. On the basis of referring to the international practiceand domestic circumstances and for the sake of research efficiency, the dissertation argues thatSMEs shall meet the following two requirements: the number of the employees shall be no morethan 500 and the registered capital shall be no more than 50,000,000RMB. On the basis of the twoconcepts: enterprise governance mechanism and SME, the author puts forward the concept ofgovernance mechanism of SME which is the organizing and arranging system of the advantagesand disadvantages relative people confirming the interest relations among the interest groupsinside and outside enterprises through gaming. Moreover, the author also analyzes the flexibilityand compactof governance mechanism of SME, discussing the motivation for the development ofgovernance mechanism of SME. The author designs a questionnaire and carries out an investigation aiming at theunderstanding the current condition of SME governance. The statistical results of theinvestigation shows that the separation of the operating right and proprietorship is not enoughboth at the primary stage and the secondary stage; the governance structure of most SMEs is notefficient and most SMEs have not established the board of directors and don't conductsupervision meetings frequently; the stockholders are the most important decision-makers andsupervisors of enterprise operation and the stockholder-centered governance is the most widelypractice; the difficult financing condition hinders the fast and healthy development of SMEs; thefamily-dominated management increases the operation risks of SMEs. The author analyzes thedevelopment tendency from the latitudes both scale and longevity. The research results indicatethat with the growth and expansion of the SMES, the separation extent of the operating right andproprietorship increases, and the governance structure becomes mature, and the financingenvironment becomes better, and the family...