Since the reform and opening up, China's economy has achieved sustained and rapid development. Among them, small and medium-sized enterprises have contributed. At present, there are about 97 1 000 SMEs in China, accounting for more than 99% of the total number of enterprises, contributing 60% to China's GDP, creating nearly 70% of import and export trade, providing 80% of jobs for cities and towns, creating 65% of invention patents for the country and developing 80% of new products. Small and medium-sized enterprises play a supporting role in China's economy and industrial structure, are the necessary strength and important guarantee for China's economic development, and play a very important role in developing the national economy and stabilizing social order. However, small and medium-sized enterprises have always maintained a high failure rate in the market competition: at the end of 20 12, small and medium-sized enterprises stopped production, closed down and closed down, accounting for 7.5% of the total number of small and medium-sized enterprises. [1] Lack of scientific and effective working capital management scheme is an important reason for the failure of small and medium-sized enterprises. In view of the collapse of working capital management in small and medium-sized enterprises, I will provide some strategies from the aspects of financing channels, cash budget, accounts receivable management and improving the level of managers, and provide some suggestions for the rational operation of working capital in small and medium-sized enterprises.

Keywords: SME working capital management

First, the importance of working capital management

Working capital management refers to the liquidity management of enterprise assets and the management of maintaining capital operation. Working capital management includes financing management and investment management of working capital. The financing management of working capital mainly refers to the better capital allocation of enterprises through capital transfer mechanism; The investment management of working capital mainly lies in determining the best holding level of working capital such as cash, accounts receivable and inventory. [2] However, SMEs have almost no clear working capital management objectives. At the same time, the shortage of working capital makes them less aware of the management of working capital. After the global financial crisis broke out in 2008, the global economic crisis continued to spread and the global economic growth rate generally slowed down. For our country, the demand for products has declined and the growth rate of exports has slowed down. Small and medium-sized enterprises face severe challenges, and their survival will depend on the success or failure of working capital management.

Second, the status of working capital management of SMEs

(A) a single source of funds, operating difficulties

In the development of small and medium-sized enterprises, the expansion of production scale and commodity quantity is obviously faster than the improvement of enterprises' own operating ability. This kind of development beyond the essence of enterprise management will inevitably lead to the shortage of capital sources and the difficulty of operation. Therefore, small and medium-sized enterprises generally adopt debt management strategy, and the implementation of this strategy is precisely the root cause of the financial crisis. At present, in order to improve the financing environment of small and medium-sized enterprises, China has taken a series of measures and initially established diversified financing channels. However, there is still a gap between the products developed by financial institutions according to their own understanding of the market and finance and the credit structure adjustment of small and medium-sized enterprises. Therefore, the primary problem that restricts the development of small and medium-sized enterprises is financing difficulty.

(B) lack of investment capacity, lack of sustainable concept

1. Blind investment, large capital gap. At present, some small and medium-sized enterprises are not attractive enough to technical talents, and the development of new products will be insufficient. The developed new products have no price advantage or value in the market, and some products can produce certain economic value and benefits in the early stage. However, due to the lack of its own capital and weak ability to withstand pressure, as long as it encounters a market crisis, the investment will be destroyed. Many blind investments make the capital operation of enterprises more tense.

2. Weak management and inefficient capital operation. Small and medium-sized enterprises have grown rapidly, but their existence time is relatively short. One of the reasons is that the management of enterprises has not consciously made sustainable development plans for the production and operation management of enterprises. Only pursuing short-term investment goals and blindly diversifying investment will weaken the limited competitiveness of enterprises, thus causing pressure on capital operation.

Third, the causes of the status quo

The external factors that cause the current situation are mainly due to the fact that China's credit guarantee system is based on China's policy financing guarantee. Policy financing guarantee institutions do not care about profits and losses, and the ultimate goal of their services is to maximize social benefits. However, this goal does not conform to the high-risk characteristics of guarantee, which is likely to lead to the expansion of guarantee scale and turn guarantee into a way to generate social welfare. At the same time, policy financing guarantee institutions basically adopt the blockade system when providing credit guarantee for small and medium-sized enterprises, with strict examination and approval and cumbersome procedures, which makes the credit channels for small and medium-sized enterprises too narrow. Internal factors mainly include: some imperfections of small and medium-sized enterprises themselves, such as: imperfect financial management system; Cash management confusion; Poor management of accounts receivable; Excessive inventory accumulation; Managers don't know enough; Lack of management performance evaluation.

IV. Countermeasures to solve the current situation

In order to solve the existing problems, we mainly start from two aspects: First, for external reasons, establish and improve the fund use management system of small and medium-sized enterprises in China. This requires the following work: First, vigorously develop small and medium-sized financial institutions. Encourage the development of SME investment and financing companies and give certain preferential policies to guide them to participate in the equity investment of unlisted SMEs. Develop venture capital institutions and use market mechanism to provide good conditions for social capital to carry out venture capital investment. Secondly, improve the financing risk prevention mechanism of small and medium-sized enterprises, standardize the development of credit guarantee system for small and medium-sized enterprises, establish and improve the risk compensation system for policy guarantee funds, and improve the guarantee ability and anti-risk ability of policy guarantee institutions. [4] For SMEs, we need to start from the following aspects:

1. Broaden financing channels and improve the level of direct financing;

2. Establish a cash management system;

3. Optimize the structure of assets and liabilities, and ease the financial pressure through rational use of interest-free liabilities; Current liabilities in interest-free liabilities include fees payable for spontaneous financing, accounts payable for commercial credit financing, accounts received in advance, short-term loans for bank credit and taxes payable; [3]

4. To formulate appropriate credit policies, we should focus on customer credit line management and contract management;

5. Strengthen inventory management, formulate post division of labor and post authority regulations, implement zero inventory management, and reduce capital occupation;

6. Improve the quality of managers and financial management level;

7. The premise of improving the management level of working capital is to improve the quality of managers. The imperfect financial system and management system of small and medium-sized enterprises are the main reasons for the problems in their working capital management. A perfect system is an important prerequisite for the healthy development of enterprises. Without scientific working capital management, enterprises can't adjust the investment proportion of funds, the occurrence and recovery of accounts receivable and the management of inventory according to the changes of the market, which will also affect the continuity of products produced by enterprises, and can't expand the scale of production and operation of enterprises and expand the product market according to the amount of funds held. In a word, a sound financial system and management system for small and medium-sized enterprises is an important prerequisite and guarantee for good management of working capital and long-term development of enterprises.

refer to

[1] Zhou Jie. Strengthen enterprise financial management and enhance enterprise competitiveness [M]. Business Culture Press, 20 12(2)34-37

[2] Liu Hongquan. On the management of working capital [N]. Journal of jilin province economic management cadre college, 2009(8)

[3] Dong Yingchun. Strengthen the management of working capital and improve the efficiency of enterprises [M]. Modern Commercial Press, 20 10, (29): 35-39

[4] Yang Peibin. Problems and Countermeasures in Financial Management of Small and Medium-sized Enterprises [J]. Accounting Economics Press, 20 1 1(6)

[5] Li. Relocation of financial management under the condition of knowledge economy [J]. Enterprise Reform Management, 2007 (8): 50-54

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