Private Small And Medium Enterprises Financial Management Research

With the gradually reform of national economic system, the development of the society,small and medium enterprises (SMEs) play a more and more important role in the process ofnational economic development. The proportion of SMEs in the country’s economy market isgrowing, it is an integral part of the system in the country’s economic development.Throughout the world, no matter which country, private small and medium enterprises haveoccupied a big proportion of all,and they plays an important role in the development of theworld economy.Since the reform and opening-up policy, private SMEs in promoting economic growththroughout the country, raising the employment rate, maintaining social harmony and stability,has made an outstanding contribution to the whole country, the status and role of privateSMEs are more and more valued by people. Especially after China’s accession to WTO, therapidly development of China’s private SMEs has already changed the situation of "one thirdof the world". However, most private SMEs did not go well, some serious problems are in thisprocess,these problems seriously hampered the development of enterprises.The center issue of private SMEs is the survival, while the key to keep enterprisesustainable development is financial management., and it play a decisive role in thecompany’s future sustainable development. Nowadays, most of the private SME managers arelack of the understanding for financial management. Financial management is an importantpart of enterprise management.The financial management of our country’s private SMEs hasbeen very weak, management have no standard, the financial system is not perfect,management tools and technology is backward, the lack of professional management talent,etc., these phenomenon is widespread in all private SMEs.This article analyze the importance of private financial management of SMEs from thedefinition of the private enterprise and SMEs to the financial management of private SMEs.Sum up the problems in the development of private SMEs financial management, andanalyzed the causes of the problems. And then make recommendations to solve the problemof private SMEs’s financial management. This is an issue with far-reaching significance.