Why not survive the years small and medium enterprises

 Poor corporate finance expertsBEIJING, Jan. 17
power, according to SAIC statistics, as of the end of June 2010, the national industrial and commercial registration number 10898000 businesses, including small and medium enterprises for the 10,789,000 households, accounting for 99% of the total number of . However, the Ministry of Industry and Information Technology data show that average life expectancy of Chinese SMEs is only 2.9 years old.

SMEs why life is so short? Most do not survive the year? Shun (Beijing) Asset Management Limited, Chairman Qiao Zhijie letter by the Wing, the Chinese-day letter and the China Industry and Commerce jointly sponsored by the newspaper, the failure of it? 2.9 years. It is not just starting up, but developed to a certain extent, only after the failure of a certain size. When the original creation and accumulation, but it will not fail. To shop, for example, to open a store, it will not fail, then you will find him open to the thirty, fifty, when, but failed. Why? The reason is simple, enterprise development, the expansion is bound to start, but did not keep up with the investment philosophy, it is bound to fail.

Many people believe that lack of funds is an important cause of excess mortality of small and medium enterprises, financing leads to short life. In this regard, deputy director of Beijing Municipal Securities Regulatory Bureau, said Sun Tsering a different view. In his view, an entire national economy, enterprises are very short of money. Take for instance the company in Beijing, in Beijing there are currently more than 160 listed companies, capital market financing through more than 8,000 billion. More than 800 million private enterprises in the country, more than 40 million private enterprises in Beijing, capital markets, the beneficiaries are limited.

examples Sun Tsering said that the recent price of cotton in the fight on TV, Guangzhou garment processing enterprises in a crisis, the last time when the financial crisis in 2008, cotton companies in crisis, then look at macro-control mitigation , and later in a crisis.

he explained this, not the same as the performance of two crises, the last crisis did not order, do not order this crisis, because the raw material prices have gone up. He asked the case of futures companies to open an account, the North there are some outbreaks of cotton-related enterprises. These backward regions of Hebei, some cotton processing enterprises, that is, hedging with futures, these two companies make a profit, there is a profit of a business over the past eight million, last year earned more than a million. This reveals what reason? Reveals the use of financial instruments to manage enterprise risk, what risk? Is the currency risk, price risk, cost, through the management of financial instruments to achieve. This is the company's

Sun Tsering said the real impact of the financial of the future Chinese economy to the world economy and the factors that enhance their financial capacity is imperative. Corporate financial strength is the business development process in the operation and financing, handle money, use of funds and working capital and capital operation ability of enterprises. It includes corporate investment capacity, financing capacity and capital operation ability. To have the future development of private enterprise, it must develop