The Research Of SMEs' Sustainable Growth From The Perspective Of Financing Cash Flow

Cash flow is the blood of enterprises, therefore, we can find out the endogenous obstacles of the development and financing of SME in financing cash-flow, which will provide effective financial strategy and support policy for the sustainable development of SMEs in China. It breaks through the traditional financing model study,which has important theoretical and practical significance.Normative analysis and empirical analysis methods is used in this paper,to study that financing cash flow is how to support the sustainable growth of SMEs. First of all, we interpret what is the financing cash flow, which is net cash-flow amount of a financing tool in an accounting period based on cash basis, and then raise a definition method of endogenous financing cash-flow and prove it. Secondly, based on perspective of "two melting" of financing and financing cash flow ,we dose a qualitative analysis on the problem of sustainable growth and the financing of SMEs at the macro and micro level, which will help to explore the intrinsic mechanism of sustainable growth and financing. Thirdly, An empirical Study by the Data of Specimen Corporations in the SMEs Board from 2006 to 2008, is done, based on sustainable growth theory, to test the relationship between the growth of SMEs and financing cash flow in aggregate, and classification of samples. It is found in the study that: The relevance of endogenous financing cash flow at ultra-low growth is higher than that at ultra-high growth, while it is opposite of short-term loan, the biggest financing method in exogenous financing. The correlation between equity financing and growth is indistinctively, but the relevance at ultra-high growth is highest which shows that the SMEs board in Shenzhen Stock Exchange contributed significantly to the development of SMEs in it. Business credit financing has a positive correlation with growth, indicating that business credit financing become the pillars of support for SMEs growth when financing difficulties of SMEs result in growth trouble. long-term loan financing cash flow, non-governmental financing cash flow, cash flow of government subsidies is not enough to support SMEs growth. Fourthly, we also proposes some policies and proposals on how to break barriers of sustainable growth and financing for SMEs, to realize optimal allocation of resources, to maintain smooth cash flow for SMEs, to promote sustainable development of SMEs.