Small Family Business Analysis Of Financial Problems

The small and medium enterprises in China play an important role in China’s national economy. However, the family businesses have accounted for nearly 85% of the share. But on the other hand, the family business, with its own disadvantages such as short development history and small business scope, has caused more and more serious problems. At the same time, there are all kinds of unfavorable conditions that affect the development of the family business, especially the financial management which needs to be solved immediately.By analyzing the financial reality of S company, a middle and small scale family business, this paper makes a concrete analysis of the problems and reasons in the financial management, and then finds out many existential questions such as financial mismanagement, current account confusion, improper arrangement in financial department and so on. According to the relevant theories and the main operation feature in this company, this paper puts forward the solving measures that include four areas: sound financial institutions, perfection of the financial system, control of the current account, improvement of the incentive mechanism and strengthening inventory management. The above measures are beneficial to urge the family corporation develop well.There are seven parts in this paper. The first part mainly introduces the topic selection background, significance and research methods. The second part introduces the theory, including the definition of the middle and small scale family business, finance management theory and its significance, pointing out the financial problems of the middle and small scale family business in the nowadays society. The third part analyzes the financial reality and problems of S company. The fourth part puts forward the solving measures based on the relative theories. The last part is a conclusion of the main points of the paper and made a future outlook of the company as well.