Financial Risk in Financing Activities of Small and Medium-Sized Enterprises and the Countermeasures
MA Deng-yan
Abstract
MA Deng-yan
Abstract
In recent years,the rapid development of small and medium-sized enterprises(SMEs) has become the main driving force for China's national economy.In view of the financing problems of SMEs,this paper describes the status quo of SMEs' financing in China,and analyzes the financial risks existed in financing activities of SMEs based on financial management theory.The prevention measures against these financial risks are also put forward,including paying more attention to prevent and control financial risks in their financing activities,and restricting financial risks within a reasonable scope,etc.Only in this way,can SMEs achieve their maximum business value and play more important role in national economy.
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In recent years,the rapid development of small and medium-sized enterprises(SMEs) has become the main driving force for China's national economy.In view of the financing problems of SMEs,this paper describes the status quo of SMEs' financing in China,and analyzes the financial risks existed in financing activities of SMEs based on financial management theory.The prevention measures against these financial risks are also put forward,including paying more attention to prevent and control financial risks in their financing activities,and restricting financial risks within a reasonable scope,etc.Only in this way,can SMEs achieve their maximum business value and play more important role in national economy.
Key concepts: Finance, Scope (computer science), Business, Risk financing, Status quo, China, Risk Control, National economy