Research On The Problems And Countermeasures Of The Financial Management Of Small And Medium-sized Enterprises In Tibet

Small and Medium-sized Enterprises(SMEs), as a well-known industrial and commercial group and important part of national economic entities, have made tremendous contribution to the development of the national economy. The various countries in the world attach great importance to the development and the construction of SMEs, and China is no exception. One the one hand, financial management is the core of SMEs management. On the other hand, large enterprises almost grow up from SMEs, and group companies always contain many SMEs. The financial management of large enterprises and group companies follow the essence of the financial management of SMEs. Therefore, it can be known that Tibet SMEs are Tibet’s major economic entities in the economic development. They have made a huge contribution for prosperity, peace and stability in Tibet.Choosing financial management of SMEs in Tibet as the research topic is mainly based on the following reasons:Firstly, at present there are big limitations in the researches on the financial management of SMEs in China, and the main researches focus on raising some issues and simple solutions on the SME financial management. Secondly, SMEs plays an important role in the development of the national economy, and occupies more than half of the share in national economy from the various economic indicators. Thirdly, compared with the listed companies, there have been far more researches on the financial management of listed companies than that of SMEs. Fourthly, within the recent five years the phase-out rate of SMEs in China is70%,; about30%of SMEs is being at a loss; the average life of Chinese SMEs is2.5to3years1; the reason for the situation is that,for a considerable part of the enterprises, the weakness in financial management is the key factor. Fifthly, there have been a few studies on the financial management of SMEs in Tibet, so the author hopes that this research can provide valuable suggestions for the financial management of SMEs in Tibet. Sixthly, Tibet SMEs has not only contributed a lot not only for the economic development of Tibet, but also for promoting social stability of Tibet.Through lots of researches, the author has collected and interpreted a large number of policies and regulations, and finally obtained the results of this study. This article is divided into five sections to discuss the subject. In Chapter I the significance, the purpose and content of the research and the methods employed are summarized; the literature review tells the research bases of this paper; the major contribution and shortcomings are also stated. In Chapter II, the status of the financial management of SMEs in Tibet is analyzed, including the basic situation of financial management of SMEs in Tibet, main problems and causes of problems in the management; the author also points out in this part that the characteristics of financial management of SMEs in Tibet is the main cause of the problems. Chapter III has carried on the case analysis, including the case background, the problems in the research object, the causes of the problems, and conclusion and revelation of this research; Chapter IV discusses the ways to improve the financial management of SMEs in Tibet; based on the Chapter V, this part tries to give the corresponding countermeasures and some recommendations to improve the management. Combining theory with reality, summarization with case study, this paper has made analysis and study of the financial management of SMEs in Tibet from multi-level and multi-angle.Innovation of this paper is mainly manifested as follows:Firstly, the author has summarized seven universal characteristics of the financial management of SMEs in China so far, and then the author has summed up the two unique characteristics of Tibet:financial management of environmental policies and financial management of regionalization. Secondly, the author has proposed a more in-depth and complete explanation of SME financial management problems, which is more persuasive. Thirdly, the solutions to the problem of the financial management of SMEs in Tibet the author proposed are more realistic, and with more operability. Fourthly, through real case analyses, and based on the analyses of data from the financial statements, the author has found a few problems in the financial management of SMEs. Fifthly, the study has been raised to a certain height. Financial management is the core of enterprise management. In the implementation of the enterprise management, financial management should be put in the core status, and be employed to comprehensively coordinate other management, finally forming join forces with the achievement of enterprise goal as the direction. Sixthly, this paper is a combination of theory and practice, the characteristics and the problems in SMEs in Tibet are truly reflected through a lot of the actual situation of the financial management of SMEs. The paper has also made further study, which aims to use theory of financial management to instruct and enrich the financial management of SMEs. Seventhly, the author fully recognize the relationship between the financial management of SMEs in Tibet and other conditions there, such as Tibet’s unique natural conditions, backward economic and cultural conditions, and political environment. There may be advantages in policies, while there are also may be disadvantages in environment or other aspects. Integrating the advantages and disadvantages into this study has become a new highlight in this paper.The main work and research findings of this paper:firstly, this paper has conducted a systematic study into the financial management of SMEs in Tibet, summarized characteristics of the financial management of SMEs through understanding the status of the financial management of SMEs in Tibet, which provides a foundation material for the future study. Secondly, each view in the paper has been deeply parsed, from multi-angle and multi-facet, and some practical examples have been used to illustrate problems, which makes opinions more prominent and distinctive. Thirdly, feasible solutions have been proposed to solve relative problems in the financial management of SMEs in Tibet, and new methods have been provided for the theory study in the financial management of SMEs.