A Study On Successful Financing Factors Of Kingdee Co.

Since reform and opening-up, Chinese small and medium-sized enterprises havebecome an important component in the national economy; they are not only the importantforce of promoting the national economic development, but also offering solution toemployment and good for the social stability. However, the difficulty in financing is amajor problem in the development of small and medium sized enterprises.As the main body of technological innovation, the technology-based SMEs havebecome an important new force in the technology innovation and development of high andnew tech industries in China. More money is needed for their research and development,but their high risk adds the financing difficulties.Successful fund-raising is depended on the correct financing decision and putting itinto practice.In order to achieve the SMEs’ financing decision goals, we find out thefactors that affect the financing decision making and then divide into three categoriesaccording to the inherent characteristic of scientific and technological enterprises as wellas the theory of modern capital structure and life cycle theory. Then illustrate theformation mechanism to the financing decision by "Demand-Supply-Environment"three-factor model and analyze the key success factors to achieve a successful financing.Introduces an case that Kingdee has progressed significantly leaps because ofsuccessful financing several times. We try to analyze its access to successful financingbased on the three-factor model. Firstly, as the money demand-side, Kingdee’s financingability is stronger than many other small-and medium-sized enterprises. Secondly,Kingdee was quite good at taking different financing strategies according to the ir ownconditions and the external environment at its various stages of growth. Lastly, Kingdeeexploited the overseas market and actualized the internationalization strategy, which makeKingdee successfully avoided the keen competition with its strong competitor at home.At the end of the article has proposed some constructive suggestions to solve thepresent financial puzzledom of medium&small-sized enterprises. As the external market is always both complex and uncertain, enterprises must bring their own enthusiasm,initiative and creativity into full play and can see the change trends for the futuredevelopment. Work out suitable financing decisions based on the"Demand-Supply-Environment"three-factors model.