Research On Financing Decision Of Small And Medium-Sized Enterprises Based On Grey Correlation Analysis

Small and medium-sized enterprises(including micro-enterprises)are always the vanguard and cornerstone of the development of the socialist economic construction of party and country,which plays an extremely important role in supporting and promoting the development of the national economy,expanding employment,leading the scientific revolution,revitalizing the market,and fully satisfying the needs of party members and the masses.Fund operation management is considered to be the soil for the survival and development of small and medium-sized enterprises.However,it is difficult for small and medium-sized enterprises to grow towering trees on barren land.That is the difficulty of financing for SMEs,an urgent problem to be solved.In recent years,the central bank has taken various measures to support commercial banks increasing their credit allocation actively through innovative monetary policy tools,increased inclusive refinancing and credit card discount lines,promoting reasonable profit transfers by commercial banks and financial institutions and thus.Further,reducing the financing cost of the real economy.However,small and medium-sized enterprises are still facing real problems such as huge cost pressure,tight funds,declining profits,and labor supply being less than demand.Compared with large enterprises,they are weak in all aspects and cannot obtain resources comparable to those of large enterprises.Therefore,the topic of financing difficulties has not been diminished.In this paper,the literature related to SME financing,and theoretical knowledge involved was firstly sorted out and elaborated.Subsequently,a case analysis was conducted on financing decision-making issues.The reason why TL Company was selected as the research object in this paper is that TL Company is a small enterprise in the leasing and business service industry,which belongs to the category of small and medium-sized enterprises studied in this paper.At the same time,this company's situation is widely known in real life,which is easy to obtain relevant data resources.By studying the operating status,financial status and financing status of TL companies,financing decision-making and other aspects,the grey relational analysis method is used to calculate the correlation coefficient of the financing decision-making related indicators,and the entropy weight method is used to objectively calculate the weight of each indicator to obtain the final evaluation result,providing a method for SMEs to make financing decisions.After analyzing the conclusions of financing decision,the guarantee conditions were put forward for enterprises to implement financing decision.Finally,it is concluded that when SMEs make financing decisions,they should fully understand their internal and external environments,and make the most suitable financing decisions for the enterprise based on the actual situation.How to make financing decisions is still one of the focuses that should be paid attention to in the development of SMEs.