1、 Strategic Financial Management in Small and Medium-Sized Enterprises Zongsheng Liu Economic Theory and Management. Abstract Along with the development of social economy and the progress of science and technology, Chinese enterprises are being in a stage filled with opportunities and dangers. This p
2、aper introduces the connotation and significance of strategic financial management, elaborates the problems in the financial strategies conducted by small and medium-sized enterprises together with the causes and proposes some countermeasures finally. Keywords: Small and medium-sized enterprises, St
3、rategic financial management, Problems, Countermeasures Introduction The uncertainty of an enterprises financial environment fills its financial activities with risks. In addition to opportunities, quite a lot of dangers arise from time to time in its financial management. Therefore, it has become t
4、he key to the success of an enterprises financial management whether it can keep track of the trends of changes and absorbe what is useful while rejecting what is harmful. Strategic management ideas are significant in enterprises financial management since we must make efforts to analyze and grasp t
5、he general environment and development tendency of an enterprise and therefore to improve the adaptability, changeability and applicability of financial management to uncertain environment. Currently, over 10,000,000 small and medium-sized enterprises have passed the industrial and commercial regist
6、ration, taking up 90% of the total enterprises in China. Accordingly, their strategic financial management is of particular importance, which is also the topic of this paper. 1. Connotation and Main Contents of Strategic Financial Management Strategic financial management refers to financial managem
7、ent theories according to which financing should be conducted in the most proper way, the collected capital should be utilized and managed in the most effective way in enterprises and decisions on the reinvestment and distribution of profits should be made most reasonably. According to its connotati
8、on, we can sum up the three main contents of strategic financial management, including financing strategy, investment strategy and profit-distribution strategy. Details are as follows: Financing strategy Highly developed modern enterprises are characterized by sharp growth in sales. When faced up wi
9、th such a situation, enterprises tend to have great demands for capital since stocks and receivables are increased as well. The greater the tension of sales growth is, the greater capital demands will be. Therefore, financing strategy is of significance in strategic financial management. The functio
10、ns of financing strategy lie in clarifying the guidelines for financing, laying down financing objectives, establishing the overall scale, channels and methods of financing, arranging strategic schemes of capital structure optimization, laying down relevant countermeasures in order to achieve the fi
11、nancing objectives, and finally predicting and collecting the amount of capital the enterprise needs. 2. Problems in Strategic Financial Management of Small and Medium-Sized Enterprises in China Currently, some common problems include: 2.1 Lacking in Scientific and Standardized Financial Strategies
12、Quite a few enterprises are pursuing only a large scale, or purchasing a large amount of land while neglecting asset structure allocation, or having no reasonable arrangement for its capital. They have no financial strategies at all, not to mention their implementation. As for some others, the effec
13、t of their strategic financial management is greatly affected due to their unscientific and irregular strategies, which are characterized by the following features: first, their strategic financial aims depart from their enterprises overall ones； second, financial strategies are regarded equal to financial plans, hence neglecting the comprehensiveness of financial strategies； third, financial strategies are not made based on their enterprises long-term goals and therefore have great randomness.
