Sme Growth Process Of Financing Discussed

Small and medium enterprises form an important part of the economic composition of a country. They possess competitive edge due to their specialization, decentralization and small production scale, etc. which play an important role in stimulating stable economic growth, creating job opportunity, innovating technology and system, enlarging the size of foreign trade and so on. Thus they have contributed in raising the rate of economic growth and employment of a society for a country. However, small enterprises encounter inequality in securing financial resources as compared to their economic contribution to the country. The main bottleneck that obstructs the healthy growth of small enterprises in our country is attributable to the difficulty in securing financing, shortage of cash and unreasonable capital structure. This thesis is using modern financial management as a basic theory for guidance which incorporates the current development of small and medium enterprises in Zhejiang and new domestic financing methods (financing for small and medium enterprises via listing, trust financing for small and medium enterprises, fund financing for small and medium enterprises), analysis of the present situation on the financing methods and channels for small and medium enterprises in Zhejiang and existing problems, and also exploring new specific way and method on financing innovation under this intensive market competition environment.Based on the theoretical analysis, adopting a combination of qualitative and quantitative study methods, applying economic management and relevant theories of financial aspect of financing and with the aid of ambiguous integrated appraising model, etc. of mathematical tools to complete the work of this thesis. We refer to Zhejiang QW Comapany Limited for case study and elaboration on the necessity to reinforce the current financing management of domestic small and medium enterprises. At the same time to determine how to operate financing management and selection of financing strategy at the various growing stages of small and medium enterprises so as to indicate the directional analysis of financing management from qualitative to quantitative.The main study content of this thesis is(1) analysis of present financing and its generated deep cause, growth system and the necessary financing strategy to be taken at the various growing stages of small and medium enterprises;(2) analysis of relationship between capital structure and financing management and determination on the importance of financing management of small and medium enterprises;(3) using the growing stage, financing management and strategy of Zhejiang QW as reference case, specifically analyses the financing channels, comparison of financing methods, forecast of cash requirement, exploring the characteristics on how the financing of small and medium enterprises is being structured at different...