Strategic Financial Management in Small and Medium-Sized Enterprises 战略财务管理的中小型企业翻译.docx

Strategic Financial Management in Small and Medium-Sized Enterprises 战略财务管理的中小型企业翻译.docx

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StrategicFinancialManagementinSmallandMedium-Sized

Enterprises

ZongshengLiu

EconomicTheoryandManagement.

Abstract

Alongwiththedevelopmentofsocialeconomyandtheprogressofscienceandtechnology,Chineseenterprisesarebeinginastagefilledwithopportunitiesanddangers.Thispaperintroducestheconnotationandsignificanceofstrategicfinancialmanagement,elaboratestheproblemsinthefinancialstrategiesconductedbysmallandmedium-sizedenterprisestogetherwiththe causesandproposes somecountermeasuresfinally.

Keywords:

Smallandmedium-sizedenterprises,Strategicfinancialmanagement,Problems,Countermeasures

Introduction

Theuncertaintyofanenterprise’sfinancialenvironmentfillsitsfinancialactivitieswithrisks.Inadditiontoopportunities,quitealotofdangersarisefromtimetotimeinitsfinancialmanagement.Therefore,ithasbecomethekeytothesuccessofanenterprise’sfinancialmanagementwhetheritcankeeptrackofthetrendsofchangesandabsorbewhatisusefulwhilerejectingwhatisharmful.Strategicmanagementideasaresignificantinenterprises’financialmanagementsincewemustmakeeffortstoanalyzeandgraspthegeneralenvironmentanddevelopmenttendencyofanenterpriseandthereforetoimprovetheadaptability,changeabilityandapplicabilityoffinancialmanagementtouncertainenvironment.Currently,over10,000,000smallandmedium-sizedenterpriseshavepassedtheindustrialandcommercialregistration,takingup90%ofthetotalenterprisesinChina.Accordingly,theirstrategicfinancialmanagementisofparticularimportance,whichisalsothetopicofthispaper.

1.ConnotationandMainContentsofStrategicFinancialManagement

Strategicfinancialmanagement referstofinancialmanagementtheoriesaccordingtowhichfinancingshouldbeconductedinthemostproperway,thecollectedcapitalshouldbeutilizedandmanagedinthemosteffectivewayinenterprisesanddecisionsonthereinvestmentanddistributionofprofitsshouldbemademostreasonably.Accordingtoitsconnotation,wecansumupthethreemaincontentsofstrategicfinancialmanagement,includingfinancingstrategy,investmentstrategyandprofit-distributionstrategy.Detailsareasfollows:

Financingstrategy

Highlydevelopedmodernenterprisesarecharacterizedbysharpgrowthinsales.Whenfacedupwithsuchasituation,enterprisestendtohavegreatdemandsforcapitalsincestocksandreceivablesareincreasedaswell.Thegreaterthetensionofsalesgrowthis,thegreatercapitaldemandswillbe.Therefore,financingstrategyisofsignificanceinstrategicfinancialmanagement.Thefunctionsoffinancingstrategylieinclarifyingtheguidelinesforfinancing,layingdownfinancingobjectives,establishingtheoverallscale,channelsandmethodsoffinancing,arrangingstrategicschemesofcapitalstructureoptimization,layingdownrelevantcountermeasuresinordertoachievethefinancingobjectives,andfinallypredictingandcollectingtheamountofcapitaltheenterpriseneeds.

2.ProblemsinStrategicFinancialManagementofSmallandMedium-SizedEnterprisesinChina

Currently,somecommonproblemsinclude:

2.1LackinginScientificandStandardizedFinancialStrategies

Quiteafewenterprisesarepursuingonlyalargescale,orpurchasingalargeamountoflandwhileneglectingassetstructureallocation,orhavingnoreasonablearrangementforitscapital.Theyhavenofinancialstrategiesatall,nottomentiontheirimplementation.Asforsomeothers,theeffectoftheirstrategicfinancialmanagementisgreatlyaffectedduetotheirunscientificandirregularstrategies,whicharecharacterizedbythefollowingfeatures:

first,theirstrategicfinancialaimsdepartfromtheirenterprises’overallones;second,financialstrategiesareregardedequaltofinancialplans,henceneglectingthecomprehensivenessoffinancialstrategies;third,financialstrategiesarenotmadebasedontheirenterprises’long-termgoalsandthereforehavegreatrandomness.

2.2NeglectingStrategicEnvironmentAnalysisandHavingUnreasonableStrategicFinancialGoals

Strategicenvironmentanalysisisboththefoundationoffinancialstrategiesandtheguaranteeforitsimplementation.Itincludesinternalandexternalenvironmentanalysiswiththeformerbeingtheinternalfoundationandimplementationbasisfortheestablishmentoffinancialstrategies.Atpresent,quitealotofsmallandmediumenterpriseshaven’trealizedtheimportanceofstrategicenvironmentfortheestablishmentandimplementationoffinancialstrategiesandaccordinglyfailedtohaveproperanalysisontheirstrategicfinancialenvironmentespeciallyitsinternalenvironment.

Asaresult,theirunpracticalandunreasonablestrategieshaverestrictedtheeffectiveimplementationoftheirfinancialstrategies.

2.3LesseningtheRoleofBudgetinginStrategicFinancialImplementationBudgetingmainlyexertsitsroleinstrategicfinancialimplementationintwo

aspects.First,itfurtherclarifiesandspecifiesstrategicfinancialideassoastobeunderstoodandconductedbyallthestaff.Budgetingcanhelptodividestrategicgoalsintoeverysectionofanenterpriseandeveneveryemployee. Inaddition,whenimplementingataskjointly,allsectionsanallemployeeswillhavebettercooperationandcommunication witheachother.Second,budgetingalsoprovidesastandardforanenterprise’sdailyoperationandperformance.Withaquantitativefinancialgoalsetinbudget,theactualimplementationcanbecomparedwiththebudgettorevealthedisparitybetweenthegoalandtherealityandtakeeffectivecountermeasures.Now,mostsmallandmediumenterprisesinChinahavenosystematicandcompletebudgetsystemmadeupofsalesbudget,productioncostbudget,generalindirectcostbudget,lossandexpensebudgeandcashbudgetandsoon.Evenifsomehavesuchasystem,itsshortageofcarefulbudgetingandstrictimplementationalsolessenstheroleofbudgetingaswellastheimplementationoffinancialstrategies.

2.4ProblemsinEnterprises’FinancialManagement

Now,someproblemsinsmallandmediumenterprises’financialmanagementhavealsorestrictedtheestablishmentandimplementationoftheirfinancialstrategies.Somemainproblemsareasfollows.

①Obsoleteideas,uncleardutydivisionanddisorderedmanagement.Enterpriseshavenoideaof“corporatemanagementshouldbebasedonfinancialmanagement

andfinancialmanagementshouldcenteroncapitalmanagement;entrepreneursandfinancialstaff’slack ofscientificandadvancedfinancialideasincludingtimevalue,riskvalue,marginalcost,opportunitycostandinsufficientknowledgeaboutfinancialmanagementtheoriesandmethodshaveresultedinuncleardutydivision,disorderedmanagement,ineffectivemonitor,falseaccountinginformationandsoon.

②Difficultfinancing,mainlymanifestedininsufficient channelsandscalesoffinancingchannelsaswellasdisorderedfinancingorders.Currently,mostsmallandmediumenterprisesarefacedwithgreatdifficultyingainingshort-termloans,nottomentionlong-termones.81%ofallenterpriseshavenoenoughcurrentfundsfortheir

operation.

Thelongertheperiodsofloansare,thelessmoneytheycanreallyutilizefromtheirloans.Asisshowninasurvey,60.5%enterpriseshavenoaccesstolong-termloans,amongthosewhocanreallygetsuchloans,16%enterprises’demandsarefullyfulfilled,52.7%arepartiallyfulfilled31.2%arenotfulfilled.（Huang,2008）

3.CausesoftheProblemsinStrategicFinancialManagementofSmallandMedium-SizedChineseEnterprises

Atpresent,mostsmallandmediumenterprisesespeciallythoseprivateonesemployhighlyunificationofownershipandmanagementrightsinwhichtheinvestoristhemanagerwhosepowercannotberestrictedinanycase.Havingnocleardivisionofdutiesandstrictregulations,thesemanagersdon’tembodyfinancialmanagementintoaneffectivecorporatemanagementsystem,nottomentionregardingfinancialstrategiesasasignificantpartoftheenterprise’soverallstrategies,hencelesseningtheirsignificanceandfunction.Thesemanagersdon’tbelieveinstrategybutgoodluck,notsystembuttiesofblood,notproceduresbuttacklingkeypoints,notmanagementbuttechnologyandmarket.

Especiallyforthoseenterprisesventuringoutofniches,unfavorableenvironmentisthechiefoffender.

Inaddition,managers’poorqualityisalsoanimportantcauseforthefailureoffinancialstrategies.ItiswellknownthatmostmanagersinsmallandmediumChineseenterpriseshavepoorcomprehensivequality,insufficientmanagementexperiencesandlowefficiencybecausetheyhaven’tgonethroughanysystematiclearningofmanagementtheoriesandspecialprofessionaltraining.Therefore, theyarenotabletohavereasonablepredictions,decisions,budgets,control,analysisandevaluationbasedontheirowncharacteristicsandthemarket,tohaveanalysison

financialenvironmentandlaydownapplicableandfeasiblestrategiesforfinancing,investmentaswellasprofitdistributionortofullyrealizetheimportanceoffinancialbudgetingandthereforetohaveeffectivecontroloveritsimplementationinordertoservetheoverallgoalsoftheirenterprises’developmentstrategiesinabetterway.

4CreatingFavorableStrategicEnvironmentandEmphasizingEnvironmentalAnalysis

Forsmallandmediumenterprises,theirstrategicenvironmenthasimpactonnotonlytheirfinancingbuttheestablishmentandimplementationoftheirfinancialstrategies.Therefore,itisofgreatimportancetocreatefavorablestrategicenvironmentandemphasizeenvironmentalanalysis.

Inspiteofaseriesofnationalpoliciesencouraging,guidin