Research On Financing Strategy Optimization Of You Si Electronic Machinery Group

The development of China’s economics and society has upgraded the residentconsumption level and created a lot of market opportunities. That also provides ahuge development space to Small and Medium Enterprises (SMEs). If SMEs want toseize the opportunities of development, they need to expand their investmentto improve the capacities of production, R&D and service. All of these requiresustaining funding support. However, many SMEs lack financing capacity and havefinancing difficulties. This has made the enterprises fall into the crunch ofmanagement and miss a lot of development opportunities. Numerous SMEs exist invarious industries of the society. They create60%China GDP and provide more than70%jobs of the country. Therefore, finding the path to solve the financing problem ofSMEs and supporting the development of SMEs are essential foreconomic development and social stability.In the past, many researches on the financing problem of SMEs focused onpolicy support, financial environment and social credit system, hoping to create abetter social environment for the development of enterprises. However, SMEs shouldnot rely on government’s policy support too much while ignoring their own internalproblems. Many financing difficulties are due to their incorrect financing concept andlower management ability. If these problems cannot be effectively solved, theirfinancing capability will not get substantial increase even the financing environmenthas improved. Jilin Yousi Electronic Machinery Group Co., Ltd. is a medium-sized industrialenterprise who is facing the financing difficult. It mainly engaged in production andsales of poultry slaughter and processing equipment, and food processing equipment.It is now in the stage of rapid development. The endogenous financing mode isunable to meet the needs of funds. Improving the enterprise’s financingability, finding its own proper financing way, is the key to break through thebottleneck of development. The research on the financing problems and theoptimization methods of financing strategy can help Yousi Electronic MachineryGroup to solve its own problems and broad the financing channels to improve thefinancing capacity, which can provide adequate fund for the production and research,help drive its business growth.By researching the case of Yousi Electronic Machinery Group, this articleanalyses the financing situation and the financing problems, and expounds thedevelopment significance of solving these problems. In view of thefinancing problems, the author consults a large number of documents, discusses thecauses of these problems by combing and analyzing the related research results, suchas policy environment and financial environment factors. The author also points outthe important factors of the financing difficulties from the enterprise perspective, suchas lack of asset and profitability, imperfect financial management system andcorporate governance, lack of financing management consciousness. Base on thesecauses, the article provides the corresponding way to solve the problem, such as makeit clear that the enterprise needs to comply with the financing principles, optimize thefinancing management system, and discuss the optimization strategy of the enterprisefinancing structure. In order to ensure the implementation of the financing strategies,the author quantitative forecasts the financing demand of Yousi Electronic MachineryGroup, discusses the financing options combined with its own situation and theresearch results of related articles. It also suggests the enterprise to improve the enterprise governance and management level, strengthen its financial and creditmanagement, strive for policy support, co-operate with intermediary serviceinstitutions, so that it can enhance the financing ability from the enterprise interior.The financing problem of Yousi Electronic Machinery Group exists in manySMEs, and the causes of these problems are common. The research on the case ofYousi Electronic Machinery Group, discusses the solution method of these problems,analyses the abstract problems based on the specific case. It may help other small andmedium-sized enterprises to find their own problems,and also providecertain reference for the small and medium-sized enterprises to optimize theirfinancing work.