Sme Financial Management Of A Number Of Issues

It is becoming more important that research on the financial management of medium and small enterprises of science and technology because they are facing the challenge of economic knowledge. The characteristics of the financial management of these enterprises are summarized first from the point of the characteristics of these enterprises in China and then the matters of these enterprises concerning financial management are therefore made a study in this paper and corresponding countermeasures are also put forward.Firstly, the characteristics of medium and small enterprises of science and technology are expatiated in this paper. The life span of enterprise is divided into four stages: seed stage, startup stage, growth and expansion stage and maturation stage. On the basis of the above, the characteristics of financial management are analyzed and the differentiations from conventional enterprises which includes defining the financial management objectives, financing management and investing management are discussed. The above three are stressed importance on and discussed in detail. According to traditional enterprises, the financial management objective of medium and small enterprises of science and technology is defined. And the view point that the objective of financial management should be divided into basic objective and detailed objectives is brought out. The basic objective of financial management is maximizing the value of enterprise and different detailed objectives which involve maximizing the amount of financing, the profits, ratio of income to net worth as well as ratio of return owners equity should be set according to different stage.Secondly, the financing management of medium and small enterprises of science and technology is studied thoroughly in this paper. By analyzing the difficult financing situation of these enterprises are facing now in China, five financing methods suitable to these enterprises are presented as: financing by local medium and small financial organization, guarantee financing, attracting venture investment, over-the-counter quotation and financing by government fund. New ideas concerning the main channels, methods and corresponding management principles, operations of each stage are discussed and optimum capital structure is simplydescribed. It concludes that the essential of financing strategy is to getting optimum capital structure.Finally, the investment management of medium and small enterprises of science and technology is stated. The viewpoint that investing should be managed differently according to three phases of technology innovation is put forward. Then the price evaluation of high technology transfer is studied and two factors which are suppliers and buyers should be considered. The purchase price is calculated by the model of purchase price range which is made first.In addition, dividend distribution management and financial ratio of medium and small enterprises of science and technology are also discussed in this paper. The evaluation standards of dividend distribution policies and financial ratio indexes suitable to these enterprises are brought forward and the operation is getting more feasible.