Research On Financing Problems Of SS Companies In Small And Micro Enterprises

Capital is the lifeline of an enterprise,in soMe sense,the developMent of an enterprise is a financing process.Financing has always been a bottleneck restricting the developMent of sMall and Micro enterprise;it has practical significance to solve the financing difficulties through the analysis of financing probleMs and counterMeasures in sMall and Micro enterprise.With the increasing nuMber of sMall and Micro enterprises in China,they have gradually becoMe an iMportant new force in the developMent of national econoMy,which have an increasing influence on social eMployMent and socioeconoMic developMent.However,due to their own liMitations,such as the financial systeM is not clear,the lack of professional financial staffs,they are at a disadvantage in an iMperfect credit rating MechanisM,that will lead to banks and other financial institutions to raise the threshold for sMall and Micro enterprise in order to control the risk.In addition,because of the risk and low incoMe,the bank and other financial institutions are not positive for such loan service.If turn to private loan coMpany,it will take higher financing cost.Although it will help iMprove the fund deMand,but cannot fundaMentally solve the probleMs of financing difficulty for sMall and Micro enterprises.This paper takes SS CoMpany as the research obJect,studied the financing difficulties by using Methods of field survey,theoretical analysis and literature review,case analysis and coMparative analysis,coMbined with pecking order theory,asyMMetric inforMation theory,credit rationing theory,relationship lending theory,enterprise life cycle theory and the theory of network financing.After Making a systeMatic analysis on SS coMpany's financing status,probleMs and causes,we found that SS coMpany facing the probleMs such as the financing aMount is difficult to Meet the needs of developMent,lack of credit and does not have strong ability in innovation.Then,analyze the financing probleMs in both internal and external aspects.On this basis,analyze SS CoMpany's financing options through the cost,resource utilization and the requireMents of refundMent,and propose appropriate financing suggestions.Finally bring forward the counterMeasure froM three aspects;these aspects are the SS coMpany itself,financial institution and governMent support.Firstly,enterprise shall follow the requireMents in the developMent of Market econoMy and strengthen internal ManageMent.Moreover,forM the credit concept and provide the data base to the bank for their reference.Secondly,according to the characteristics of sMall and Micro enterprises,the financial institutions should bring forward the counterMeasures for the financing deMand of this large group.Thirdly,the governMent shall play an iMportant role and propose policies to support the sMall and Micro enterprises.To solve the financing probleM of sMall and Micro enterprise,we Must view the probleMs in Many ways and use Multi-pronged approach.