Small Micro-enterprise Financial Management Problems And Countermeasures

Small and micro businesses are the main force of the national economy. Theyplay an important role in stabilizing growth, expanding employment, promotinginnovation, creating a thriving market and satisfying many aspects of people’sdemands. To promote the healthy development of Small and micro businessesconcerns the overall situation of economic and social development, so the PartyCentral Committee and the State Council pay high attention to it. Small and microbusinesses status is being promoted, in order to promote their development steadilyand healthily, our country are scaling up efforts to optimize the developmentenvironment, carry out the special action to assist Small and micro businesses,improve the financing service, perfect the service system construction and variousaspects. However, according to statistics, the average lifetime of our Chinese smalland micro businesses is only5.7years, and80%of them are no more than5years. Itis less than half of Japan and the European countries. It illustrates that small andmicro businesses still exist many problems in China, and these problems are to bestudied. How to solve the problem of Small and micro businesses survival isespecially important and urgent.In this paper, the author look up domestic and foreign literature, sum up, anddraw a conclusion that factors which affect the work of financial management includeexternal and internal factors. By using direct interview method, the author mastersfinancial management problems of Small and micro businesses through interviewees.In order to grasp the financial management problems which small and microenterprises exist more accurately, and based on the results of literature and interviews,this paper adopts the questionnaire survey, reference maturity scale and economic andcultural environment, designed20topics for specific research. Giving out250questionnaires and taking back184valid ones. And then being by the factor analysisand quantitative analysis, the author summed up the financial management problemswhich exist in small and micro businesses are four aspects: financing difficulties,lacking of senior financial personnel, the low quality of financial management,inferior core competitiveness. Hereby, the author puts forward the correspondingcountermeasures and suggestions in this paper, i.e. expanding the financing channels,widening the capital strength, paying attention to professional talent, improving thestaff quality, enhancing the quality of financial management and building the core competitiveness of enterprises which takes innovation as the center. This paper canprovide some valuable and practical suggestions for the development of Small andmicro businesses, and it can promote their healthy and stable development.