The Empirical Analysis Of Financing Efficiency Of Privately-owned Small And Medium-sized Enterprise In Shandong

Privately-owned small and medium-sized enterprises have made an increasingcontribution to the national economy and become the most active part of in the system ofinnovation in the last30years of reform and opening up, and they are contributingenormously in creating employment, improving GDP and paying taxes. It is not equal tothe contribution of privately-owned small and medium-sized enterprises thatprivately-owned small and medium-sized enterprises have difficulties in financing, whichlimit the development of enterprises and Affect social stability. It is one of the importantresearch subject to find out the reasons of low efficiency and the measures of improvingthe efficiency in financing of privately-owned small and medium-sized enterprises for thedevelopment of social economy.In theory, this paper analyses the early theory of financing, modern corporatefinance theory, and summaries influencing factors of privately-owned small andmedium-sized enterprises, we know that The difficulties in financing in fact response thelow efficiency in financing, and can’t raise funds which is needed for self-development orCan’t make a effective use of funds. About the access efficiency of funds, Firstly,enterprises need to choose the financing channels, and different financing channels canproduce different financing efficiency. However, the positioning of the financingstructure and the different cost will affect the choice of the financing channels. About theefficiency of fund use, Money receiving timely, Enterprise operation ability andprofitability will have great influence. Through analyzing the factors which influence thefinancing efficiency, we can see financing cost, financing structure, profitability andoperating capacity influence the financing efficiency.In empirical, this paper analyses the current situation of financing of privately-ownedsmall and medium-sized enterprises in Shandong province, and chooses the related data of20privately-owned small and medium-sized enterprises and20large-scale enterprise ofShandong province as the sample data to make empirical analysis by using Data Envelopment Analysis. The analyze takes the cost of debt financing and the cost of equityfinancing as the input and takes the main business income and the retained profits as theoutput. The result of empirical shows that the main reason of the low financing efficiencyof privately-owned small and medium-sized enterprises in Shandong province is the lowefficiency of the access efficiency of funds, which is showed that the high cost of financingand narrow financing channel.This paper gives some suggestions, including strengthening self-construct, improvingthe external financing environment, strengthening support by government, to improve thefinancing efficiency of privately-owned small and medium-sized enterprises.