Our Country Small And Medium-sized Enterprise Financing Risk Internal Control Research

Small and medium enterprises as a major component of the national economy in China, in the promotion of economic growth to address urban and rural employment, as well as to increase national and local tax aspects play an important role. According to the statistical data shows that small and medium enterprises account for national registration of enterprise98%, the production value and profit accounted for separately60%and40%, provides about75%of urban employment opportunities, become surplus labor in rural areas, State-owned enterprise main channel of laid off workers’Reemployment and employment of college graduates. But with the development of small and medium enterprises, financing has become a bottleneck in restricting the development of Chinese small and medium enterprises. Offers enormous risks in the financing process, identify and assess risks in the financing process and to control the financial risks becoming an important aspect of the financing problems of small and medium size enterprises.The end of2009, euro-zone countries one after another into a debt crisis, Greece, and Ireland, and Portugal, and Spain, and Belgium and Italy, economic contraction, and the resulting Domino benefits of international capital markets recover. As an important economic partner of the European Union, its economic crisis on China’s import and export trade has a very big impact. Figures released by the Department of statistics showed that growth in China’s trade with the EU entered a downward path starts from the last quarter of2010, to the first quarter of2012, the downward trend has not improved. Shrinking exports to Europe as a main business of small and medium enterprises have a great impact. Continued international economic situation also increased the risk of financing of small and medium enterprises.This paper from the perspective of risk control, small and medium enterprises financing to explore internal risk control, look for way to alleviate the financing difficulties of small and medium enterprises is of great practical significance. First of all, in the case of small and medium enterprises, financing issues closely related to the survival and development of enterprises. Small and medium enterprises’internal risk control, can improve the ability of risk prevention, while reducing financing missteps, optimizing the allocation of resources, improve utilization of enterprise capital. Second, the investors, the effective control of small and medium enterprises financing risks, create a favourable investment environment for investors, reduce uncertainty brings loss. Finally, government regulators are concerned, strengthening the financing of risk control, will promote the development of small and medium enterprises, create more employment opportunities, protection of stable and sustainable development of the market.Study on the control of financing risk, this paper is divided into five sections, including:The first part is the Introduction. Under the background of European debt crisis, Chinese small and medium enterprises finance internal risk control research topics of the background, significance, literature review, research topics insufficient innovation and methods and frameworks, thesis, and so on.Second part is the financing risk of internal control theory. Describe the concepts and theory of internal control and finance, as a later Exposition and analysis of theory of internal control and finance, as a later Exposition and analysis of theory.Third part is internal control of Chinese small and medium enterprise financing risk present situation and existing problem analysis. Through data compilation and analysis, addresses the situation of China small and medium enterprises finance and internal control, and analysis of medium and small enterprises in financing and internal control problems in the process, and an in-depth analysis of the causes of the problems.Part four is the financing risk of internal control in international comparison and enlightenment. This chapter outlines the United States, Germany and Japan, and other developed countries finance and risk control, advanced experience and enlightenment to our country.Part five is the financing risk of internal control recommendations. In response to these financing risk problems in the internal control system, while drawing on the financing risk-averse experiences in foreign countries, proceeding from reality, perfection explores financing risk internal control system of small and medium enterprises in China’s basic principles, mechanism suggestion and measures.