Research On The Financing Management Of Small And Medium Sized Enterprises In China

Small and medium-sized enterprises (SMEs) are the basic elements of social economic development. SMEs had rapidly developed in our country since 90, the 20th century. By the end of 2012, the number of small and medium-sized private enterprises in China totaled 5651, which accounting for 99% of the total number of registered enterprises. SMEs promote social progress play a huge role because these enterprises contribute more than 60% to the national economy and put forward more than 80% of all jobs.However, small and medium-sized enterprises always faced financing plight due to its size restriction as well as the deficiency in the management. In this paper, we took a small textile production enterprises that located in Binzhou city of Shandong Province. We conducted the thorough research by the professional management theory, and analyzed LN enterprise financing situation with SWOT. LN enterprises have a large number of financing needs. It mainly rely on bank loans because of endogenous financing available is limited. The family management mode result in enterprise financial data is not transparent, and the credibility of the accounting information is poor. Banks and other financial institutions are difficult to accurate evaluation of enterprise management situation and the credit risk. Therefore, the bank not willing to provide financial support. It is difficult to form scale enterprise income funds. Moreover, other financing channels is insufficient, can’t be negotiable securities financing, private capital intervention is limited.LN enterprise financing predicament mainly come from two aspects of internal and external. We not only found enterprise own weaknesses in the analysis, but also reveal the shortages of our country’s government for small and medium-sized enterprise financing management. First of all, from the point of LN enterprise, the enterprise capital operation management has many problems, financial management is not in conformity with the accounting systems of enterprises, lacking the ability to cope with the external risk, it is difficult to establish good credit image, all of these affect the enterprise financing behavior. From the external macro environment, small and medium-sized enterprises of our country is always not equal development opportunities with large enterprise, various kinds of preferential policies obviously inadequate; And the number of legislation related to the development of small and medium-sized enterprises is shortage. The small and medium-sized enterprise’s rights without legal protection. In addition, the current financial system in China lacks specifically financing institutions that offer services for small and medium-sized enterprise, and the more lack of policy-based financial institutions to support. These are the important cause leading to our country small and medium-sized enterprise financing difficulties. At last, we put forward the suggestions and countermeasures to solve our country small and medium-sized enterprise financing difficult from two aspects of internal and external, combining with the United States, Germany, and Japan’s successful experience in the same problem.Through the analysis of LN enterprise financing problems, not only help for LN corporate finance, more can offer help for our country small and medium-sized enterprise financing.