Analysis Of Minor Enterprises’ Financing Cost And Financing Channels Affected By Social Network

Small and medium-sized enterprises have always been playing a vital role in the domestic economic development. However, with the increasing tension of economic being issued to lower levels, small and medium-sized enterprises are facing a great deal of problems, such as production and management problems, credit financing difficulties and raising costs, and decreasing market demands. Among these impediments, credit financing difficulties is always the severest problem. Through the successful financing cases of small and medium-sized enterprises, it can be illustrated that social network is one of the key factors that affect enterprise financing possibility. It is also proved by practical cases that those who possess wide-bound and high-equality social networks, have more access to all sorts of resources such as capital, technology and information, and more likely to achieve success in the market. Through developing open and steady social network structure, small and medium-sized enterprises can countervail the discrimination against enterprise scale and system during financing activities.This article takes the form of single-case research based on a large amount of predecessors’ empirical and normative researches. Firstly review the relative concepts and research achievements, then take a deep study of financial statements of Jing Xing Paper Joint Company. This article starts from the company’s various social network accesses, combines the financing features of district and industry, to analyze the specific financing features and the way social network functions during the progress of this company, as to analyze the connections specifically, also pay attention to the financing possibilities through financing efficiency, and make some constructive suggestions in the last.