[Abstract] SMEs have difficulties in their small scale, quantity, flexible production and management, and more dependent on the profitability of products to survive, so the current theory that the financial management of SMEs, the most profitable target for the first of; Second, to maximize corporate value. that SME financial goals should be avoided in order to make maximum profit out; 'profit maximization' goal is simple, clear head operable. that small and medium enterprise financial objective is to maximize the value can be Avoid short-term corporate financial decision-making behavior, taking into account corporate social responsibility, the profitability of the enterprise and social responsibility of unity, and help mobilize the enthusiasm, initiative and creativity together to improve the economic efficiency of enterprises struggle one to promote its rapid development, but I believe that this one-sided division of any errors, can not give a good process to guide the development of SMEs, this author to be addressed.
[Keywords] SME financial management cycle of the target company
First, the SME financial management goals and comparative analysis of medium-sized enterprises
With the 1990s, stakeholders in governance development of the theory of corporate governance, corporate shareholders have more than just business, but the stakeholders about the conclusion of a combination. Those who provide resources to the enterprise; bear the business risk stakeholders, including shareholders, creditors, suppliers, employees, government and community and business and other interested groups together to form a community of interests, should share the company's control and residual claims, therefore, the enterprise governance mechanisms can not be confined to the governance structure based on internal governance, but the stakeholders through a series of internal and external mechanisms to implement corporate governance, the main goal is to clear the responsibilities of stakeholders not just shareholders and rights responsibilities and rights, including through a formal or informal, internal or external system or mechanism to coordinate with all stakeholders, business relationship between the interests, in order to promote scientific and business decisions, and ultimately to ensure that the interests of business stakeholders to maximize its fundamental purpose of this institutional arrangement to form between the main stakeholders of the financial powers, duties and interests of mutual checks and balances, checks and balances to ensure that corporate financial security, coordination of state, high efficiency normal operation.
Relative to the listed companies, SMEs with small-scale, quantity, flexible production and management, and more dependent on the profitability of products to survive, not high level of management features, which determines the objectives of financial management for SMEs specificity: the pursuit of profit was a tendency, it is the profit guarantee of survival; financial management is not high, decision making, planning of subjectivity and arbitrary; financial risk, operational risk and high. The current discussion on SME financial goals There are two main ideas: First, to maximize profits; the second is to maximize enterprise value. That SME financial goal should be to maximize profits on the grounds that: SMEs play in the economic circle the most active role, and clinical fierce competition, only sustained profitability in order to make it to avoid elimination; 'profit maximization' goal is simple, clear head operable. that small and medium enterprise financial objective should be to maximize the value of reason : consider the time value of money and business value at risk, the benefits and risks linked to avoid short-term corporate financial decision-making behavior; consider corporate social responsibility, the profitability of the corporate social responsibility and unity, will help mobilize And the enthusiasm, initiative and creativity together to improve the economic efficiency of enterprises struggle first, to promote its rapid development.
Second, the financial management of SMEs should be oriented mechanism
Financial management-oriented mechanism, also known as the financial management target mechanism is consistent with business goals to lead the corporate finance activities and determine the direction of the financial arrangements. Establish clear financial governance-oriented mechanism for SMEs to financial institutional arrangements and specific reference to financial management activities, only a clear target in order to decide how to achieve now, the goal of financial management of SMEs simply comes down to the most profitable maximization of enterprise value, or are too one-sided point of view the one hand, failure to consider the time value of money and business value at risk, may lead to short-term corporate financial decision-making; the other hand, failed to take ownership of SMEs at different stages of change. In the SME start-up stage, the owners and operators are mostly set in the owners a capital and labor into one, simple property rights, financial governance body (the owners) seek to maximize their own interests as inevitable, but as the business development , will have to absorb external funds, then business has become the sum of a multilateral contractual relations: the shareholders, creditors, managers and employees, etc. If one party trying to damage the interests of the other profits, the results will lead to conflicts, such as workers strike creditors refused to provide loans to shareholders to sell shares, etc., these are not conducive to sustainable development of enterprises.
Based on corporate life cycle theory, property rights system as small and medium scale enterprises gradually expanded, the expansion of business scope, it will gradually become an obstacle to sustainable development, leading to changes in ownership structure, so the company's financial management goals should be as property rights system to make dynamic changes and choices.
In the pioneering period, SMEs' ownership-in-one 'very serious information asymmetry, risk levels are high, then the SME owners and their family members, mountains, relatives and other members constitute a financial relationship simply to' the maximum profit 'of a company's financial management objectives may be more feasible and oriented, but here the' profit maximization 'should be sustained long-term profit maximization, not a short-term profit maximization. Links to free download http://eng.hi138.com
In the growth stage, the core of small and medium enterprises have accumulated knowledge and ability to gain competitive advantage for enterprises to start, the product supply channels relatively smooth, stabilized the target customer base, market share is rising. With the expansion of enterprise scale, business external financing needs to absorb professional managers, power begins to decompose business ownership, corporate financial management goal should then begin to consider in addition to the original property rights derived from property rights other than the interests of the company to further expand the scale to attract the funds needed and talents to achieve a lasting, stable profits, taking into account the quality of profits at the same time, companies should also begun to focus on social benefits, performance and corporate social responsibility, said the relative position to the relevant act by enhancing corporate social image, to obtain more resources and growing profits from long-term perspective, the maximization of corporate profits and social responsibility is unity, and with different start-up period, when the company already has the material capacity to fulfill their social responsibilities.
After maturing in small and medium enterprises, business organization and management has been basically perfect the modern enterprise system has been established, property rights, powers and functions to further break down, forming a 'legal ownership of a property right to operate a' model of the modern enterprise system of property rights in this system different ownership and different power corresponding to the subject property, all property rights through the exercise of powers and functions of different ownership, the formation of mutual rights, interests and responsibilities clear property rights, financial knowledge and skills accumulated on the basis of previous has reached the highest level. At this point, the company's financial management objectives need to be fully body Links to free download http://eng.hi138.com