Venture Enterprise Financial Risk Early Warning Model

Due to all kinds of uncertainties, companies are always facing risks during the development. Disasters result from tiny problems. Risks usually bring about crisis, especially financial crisis. From portent to eruption, financial crisis is a process from quantitative change to qualitative change. It is always of great importance and difficult for risk management that how to be prepared for danger before it happens and how to work out an appropriate warning system through which effective actions could be taken in time. Till now, the study of financial warning mainly focuses on the public companies, and concentrates on the establishment and improvement of the quantitative model. The more precise the model is, the huger the amount of data is involved. But the analysis of specific companies are overlooked. On the other hand, pioneering companies are rapidly increasing in our country, and the unemployment rate is still high. For the start-ups, it will help them survive the vehement competition and grow up if they have proper financial warning system and prevent problems in advance. The study of financial warning system to pioneering companies is supplementary to current study of warning system with important realistic meaning.This article plans to start from the process of setting up new business, taking the hachibatored pioneering companies as object, to formulate a financial warning model which is suitable for pioneering companies through the study of the features and financial risks in different stages of setting up new business.