Discussion Of The SMEs Working Capital Management

The working capital is closely linked to the daily production and operation activities of the enterprise, its tentacle almost extends to all aspects of the production and operation of the enterprise; the working capital is an important financial resource of the enterprise, reasonable working capital structure determines the ordinary operating activities of the enterprise, it also directly impact on the firm value. However, studies showed that the working capital management did not attract enough attention of the corporate managers, a lot of our enterprises did not have a clear working capital management objective and a stable or reasonable working capital management system, and results are unfavorable for the survival and development of the enterprise.Since the reform and opening up, the very rapid development of SMEs has become an important role of the national economy and the main driving force for China’s economy to achieve efficient growth. SMEs have a very important role to satisfy the diversified and personalized needs, realize the socialization professional collaboration, carry out the scientific and technical innovation, bring up the entrepreneurs and promote the national economic development and maintain social stability. The rapid development of the SMEs shows that establishing and improving the corporate working capital management is the inherent requirements to the development of the SMEs is also to establish the modern enterprise management system, including the working capital management, and it is the practical need to adapt the market competition of the home and abroad. The establishment and improvement of the working capital for SMEs need the government to introduce the relevant laws and regulations, carry out strict financial system, it also needs the correct guidance of the government. From the current situation, it is imperative that the SMEs should change the concept of the working capital management, broaden the financing channels, improve the efficiency of the cash in the use, establish a sound internal credit system, and strengthen the management of accounts receivable and inventory. However, due to the influence of the traditional planned economy, China has always attached importance to the construction and development of large enterprises, unvalued the investment to the small and medium enterprises, the financial difficulties have plagued the survival and development of SMS. From the development process of SMEs, SMEs’ demand for the capital is always increased, but the availability of the capital is often in short supply. A late start of SMEs, unperfected market mechanism, the small proportion of the capital market value of total gross national product and the underdeveloped venture investment all cause the significant restrictions to the working capita management of SMEs and the even more severe situation to the working capital management. So application of the modern enterprise working capital management theory and combination with China’s actual situation and the working capital management experience of the home and abroad are very important, we should research the theory and innovation on the working capital management of SMEs, all of the above have important theoretical and practical significance to solve the problems of SMEs in China working capital management, to promote the rapid and healthy development of SMEs.The working capital management of SMEs has become the bottleneck of its survival and development, and has attracted the concern of government, industry and academic circles. Although a lot of studies of SMEs have important guiding significance to solve the problems of the working capital management of SMEs, they lack the systematic and comprehensive study. In this thesis, it uses a normative method and learns from the relevant research results of home and abroad. It adheres to the principle of the combination of theoretical analysis and practical analysis, macro analysis and micro analysis, management practices analysis of domestic and foreign companies, which to introduce the problems and countermeasures of the working capital management of SMEs. In the first part, it firstly defines a universally recognized SMEs and describes the characteristics of SMEs; secondly, it introduces the connotation of the management of working capital for SMEs and the classification of the different standards; and finally focuses on the relevant theories of the management of working capital for SMEs. The second part analyzes the problems of the working capital management for the SMEs, including the problems of working capital management of SMEs at the micro level and the macro level, follows by a thorough analysis of the reasons for the difficulties of the management of working capital for SMS. The third part, it introduces the status of working capital management system for foreign SMEs and summarizes the lessons. It mainly describes the successful management experience of American working capital, Japanese working capital, British working capital of SMEs, and summarizes the enlightenment on the solution of the working capital management issues. The last part it proposes some appropriate countermeasures to establish and improve the working capital management system of SMEs, this is also the innovation of this paper.