Research on GEM Financing Problem of SME in Shandong Province
|Keywords||SMEs Shandong Province Growth Enterprise Market Financing Internal control system Sustainable Development|
Financing problem is the biggest problem plaguing the growth of SME. From the source of funds perspective, the main source of funds for SME are endogenous financing, that the accumulation of its own profits. Total other financing sources of financing are only about one third of the funds required. These phenomenons not only limit the size of the development of SMEs, but also not conducive to economic growth and maintain social stability. To solve this problem, many developed countries to establish a business in the capital market sector, to enable SMEs get the capital by GEM through the development of listed companies. This way is conducive to innovation in corporate financing, meanwhile also can broaden the financing channels for SMEs, and to reduce financing costs.October 23,2009, China launched its Growth Enterprise Market. By the end of March 31,2011,196 SMEs through the financing of the GEM Listing solve the finance problem. Compare to other ways, getting capital from GEM has distinct advantage. The paper analyzes opportunities and risks in SEMs development through GEM. The paper firstly analyzes current situation and reasons, promoting role, and then SEMs development situation in Shandong province. Compare to Changjiang Delta and Zhujiang Delta, there are only eight small companies which get capital by GEM. The number accounted for only 4% of the whole. This paper analyzes that by the yellow triangle efficient ecological economic zones and economic zones Shandong Peninsula blue two-level opportunities for regional economic development strategy, the growth of small and medium enterprises in Shandong Province is very fast. Effective use of GEM is important to expand private economy in Shandong Province, to achieve its own growth and foster new economic growth in Shandong Province. In research methods, this paper follow from whole to parts, the first analysis of the overall level of development of SMEs in China, financing as well as in the national economy’s status and role, and then analyze the status of SME development in Shandong Province and financing. This analysis of both normative and empirical analysis to normative analysis and quantitative analysis, on this basis, combined with quantitative analysis, economics, integrated use of various branches of knowledge and methods to solve the financing problem of SMEs in Shandong Province were discussed.This paper is divided into four components. Chapter I is introduction. This section describes the research background and significance, and literature for SME financing was reviewed. In the introductory section, also the language of ideas for this issue to do with the structural arrangements are introduced, the last article introduced the main research findings and deficiencies. ChapterⅡfor SME financing and the relationship between GEM, this part of the overall level of China to analyze the current status of SME financing, SME causes of corporate finance problems, which leads to the GEM market of this new financing model for solving the financing problems of SMEs active role. ChapterⅢdetailed analysis of the status of SME development in Shandong Province and the advantages of the GEM Listing financing and risk. The first part focused on analyzing the current situation of SMEs in Shandong Province, through the analysis, Shandong Province, GEM financing SMEs through both opportunities and risks. This article last chapter, the focus of Shandong Province SME GEM risk control strategies. Improve the competitiveness of enterprises, to choose the right financing, and timely disclosure of information and control related party transactions, the GEM are an important measure to control risk financing.According to the article, Shandong Province concentrated SMEs high, regional industrial cluster development trend of good, relatively complete industrial chain, and its own intellectual integrity, high technology, in line with the requirements of the GEM Listing large number of enterprises. Meanwhile, small and medium enterprises with the State Department, Shandong Yellow River Delta economic circle of development planning and implementation of the blue the opportunity to stand on a higher strategic level to promote their own development. This is what makes the Shenzhen Stock Exchange GEM market in Shandong as an important source of business. Shandong Province, SMEs should seize this historic opportunity to achieve GEM financing, in solving the financing problems at the same time, economic and social development of Shandong Province to make a greater contribution. The article also suggests that GEM is both an opportunity, but also fraught with risks. Articles for small and medium enterprises in Shandong Province GEM and non-existence of systemic risk and systemic risk characteristics, pointed that construct the manage-system according to the regulatory authorities and advanced business experience, combined with the industry, geographic and practice, and practice it effectively, will contributing to the management of small and medium enterprises in Shandong Province regularization GEM effective financing solutions to a number of issues.